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Senate debate over mandatory uninsured-motorist coverage grows heated; sponsor pulls bill
Summary
Senate debate on a proposal to require all New Mexico drivers to carry uninsured motorist coverage exposed sharp divisions over costs and enforcement. Sponsor Senator Duhigg withdrew the bill after hours of testimony and questions about premiums and consumer impact.
Senator Sarah Duhigg introduced legislation to require every vehicle registered in New Mexico to carry uninsured motorist coverage, saying the measure would reduce costs borne by accident victims and the state when uninsured drivers cause crashes.
The bill's backers argued the coverage protects accident victims, covers medical costs and lost wages, and prevents taxpayers — including Medicaid — from absorbing those costs. “It will ensure that the state is not bearing the cost of those uninsured motorist damages,” Senator Duhigg said during debate.
Opponents and several senators pressed Duhigg on expected premium increases and enforcement. Multiple members cited a fiscal-impact analysis and comments from the Office of Superintendent of Insurance (OSI) predicting sizable increases — figures discussed during the debate included an estimated 16% rise for some full-coverage policies and a 43% increase for drivers who currently carry only minimum liability. Senator Ramos said a constituent quote showed a $311.40 annual increase for one basic policy.
The bill’s expert witness, Jeff Romero, told the chamber that approximately 24% of drivers in New Mexico are uninsured. Romero argued insurers currently price uninsured-motorist options to encourage rejection; he said that if coverage were mandatory and could not be rejected insurers would compete and that rates could stabilize or remain “flat.” Romero also said he has been involved in about a dozen class-action suits related to claims handling.
Lawmakers raised practical questions about enforcement and unintended consequences. Senators from rural and lower‑income districts warned that higher premiums could push more drivers to drop insurance, potentially increasing the uninsured rate. Others said mandatory coverage could be especially burdensome for younger drivers and households with multiple cars.
After more than three hours of questions, testimony and back-and-forth on actuarial estimates, market behavior and consumer affordability, Senator Duhigg told the chamber, “I am hearing the concerns and I'll go ahead and pull the bill.” The measure was not put to a vote and was rolled over for further work.
The debate centered on trade-offs between expanding victim protections and the near-term cost impact for New Mexico drivers. Proponents highlighted gaps in compensation after crashes with uninsured drivers; critics emphasized the risk that higher mandatory premiums could reduce overall coverage rates and harm low-income drivers.
Senator Duhigg said she will continue discussions with insurers, consumer advocates and other legislators before reintroducing the measure.
