A state official says New Mexico drivers are paying more for part of their automobile insurance because of court rulings.
The Albuquerque Journal reports that Insurance Superintendent John Franchini says court rulings on uninsured motorist coverage are allowing more claims and increasing the size of settlements.
Franchini in particular points to a 2010 state Supreme Court decision in particular for increases in premiums for uninsured motorist coverage.
That ruling allowed people with uninsured claims in the previous seven years to reopen their claims and renegotiate the settlements.
That forced insurers to pay on additional claims though the companies hadn't set aside reserves to cover those expenses.
Franchini suggests that premiums for uninsured coverage may decline in the future as insurers recover from the impact of the court rulings.
Information from: Albuquerque Journal.
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