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Committee backs requiring uninsured‑motorist coverage, sponsors say it protects injured drivers
Summary
Senate Bill 319 would make uninsured‑motorist coverage mandatory and adjust how underinsured coverage is calculated; proponents said the change protects people hurt by uninsured drivers, while insurers warned of higher premiums and the potential to push drivers out of the insurance market.
Senator Duhigg presented Senate Bill 319, which would make uninsured‑motorist (UM) coverage mandatory in New Mexico automobile insurance and change how underinsured motorist (UIM) benefits are calculated.
The sponsor said UM coverage is particularly valuable in New Mexico because a high share of drivers on the road are uninsured, and UM coverage is a driver’s primary remedy when an at‑fault driver lacks sufficient coverage. The bill would (1) require UM coverage at sale, (2) make UM coverage mandatory on a per‑vehicle basis rather than per policy, and (3) redefine “underinsured motorist” to align statutory language with consumer expectations so an injured policyholder is not penalized by offsets.
Jeff Romero, a trial‑lawyer with extensive experience in UM/UIM litigation, told the committee that case law and insurer practices have created confusion for consumers; he said courts have repeatedly found abusive insurer practices—charging multiple premiums while denying coverage stacking, and other accounting techniques—and the bill seeks to close those avenues. Romero cited New Mexico Supreme Court precedents addressing stacking and premium disclosure.
Representatives of the insurance industry opposed the bill. Brent Moore, registered lobbyist for the American Property Casualty Insurance Association and Allstate, said mandating UM coverage could increase premium costs and potentially drive some consumers to forgo insurance entirely; he estimated the average UM premium is about $300 per year for one member company and said making UM mandatory could exacerbate affordability problems. Anne Conway of State Farm said the company’s estimate showed an average increase of roughly $220 per policyholder at the limits proposed in the bill, and warned of broader affordability consequences.
Committee members questioned premium‑impact estimates and whether mandatory UM would reduce the number of uninsured drivers because competition would bring prices down. The sponsor said UM coverage is relatively inexpensive and that if required, insurers would compete on price; he also stressed the consumer protection element of removing offsets that reduce a policyholder’s available benefit.
After debate, the committee voted to give the bill a do‑pass recommendation; the transcript records a roll‑call style acknowledgement and the clerk announcing a do‑pass.
