(Alamogordo Daily News) – My basic liability auto insurance had only risen about 3 percent per year for the last five years. Suddenly, in late 2008, it shot up 48 percent. I have not had a ticket in more than 20 years and have never made a claim on this company. When I had my agent check for a reason, the company responded that rates had gone up statewide.
Excuse me? Driving actually fell in 2008, and so would insurance claims. I then spoke with a woman at the New Mexico State Regulation Commission and she had the answer: the Legislature deregulated auto insurance rates.

Why on earth would this be done? We are forced to buy auto insurance, so insurance companies have a captive audience, just like electric utilities. With no controls, they can hike the rates as much as they like. This lends itself to predatory practices like price fixing. We have seen what came of deregulation in airlines and banking. It was not good for the public.

If premiums rise much more, it will be cheaper to drop all insurance, drive bare and pay the fine if caught. This defeats universal car insurance laws.

I am very angry about this. I wrote to my senator and representative requesting that regulation on these social parasites be reinstated as soon as possible. We are all at their mercy, and without regulation, we will be forced to pay whatever they want. No good will come of it.

If you think your auto insurance is too cheap, do nothing. If not, it’s time to write your legislator before auto insurance goes where health insurance has gone into the stratosphere.