44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO DIRECT A STUDY OF THE FEASIBILITY OF IMPLEMENTING A "PAY AS YOU DRIVE" SYSTEM OF MOTOR VEHICLE INSURANCE.

WHEREAS, the cost of motor vehicle insurance in New Mexico is disproportionately high considering the state's low average per capita income; and

WHEREAS, thirty-one states have lower average liability premiums, yet only two states have a lower average per capita income; and

WHEREAS, the high cost of motor vehicle insurance, when coupled with the low income of many New Mexicans has resulted in thirty-five to forty-five percent of motorists in the state driving without insurance; and

WHEREAS, the cost of buying insurance is increased all the more by the need to purchase uninsured and underinsured motor vehicle coverage; and

WHEREAS, without affordable insurance, mandatory insurance laws will not work, which means that rates will remain high; and

WHEREAS, if all motorists were covered, rates could be reduced; and

WHEREAS, a "pay as you drive" system whereby motorists would pay for insurance each time they purchased gasoline would ensure that all drivers were insured;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico legislative council assign an appropriate existing interim committee, or create a special interim committee, to study the feasibility of a "pay as you drive" motor vehicle insurance system for New Mexico and, if appropriate, make recommendations or propose legislation to the second regular session of the forty-fourth legislature.