The bill that was supposed to charge most motorists in Nevada a drivers’ fee in order to subsidize the low-cost insurance pilot program for those residents of Clark County who were eligible, ran into some tough questioning at the Senate hearing.
This bill was the subject of a lot of vote trading in order to get the required two-thirds support that was needed to move it out of the assembly last month. This bill was sought by Assemblyman Kelvin Atkinson, D-North Las Vegas.
The two-thirds vote was a prerequisite for the bill as it planned to impose a 50% fee per vehicle that was insured each year, in order to establish low-cost auto insurance policies for the low-income residents of Clark County. These low-income groups were facing problems in paying for their regular insurance policies.
While testifying in the Senate Commerce, Labor and Energy Committee, for the Assembly Bill 299, Atkinson stated that the intention of the program was to provide a solution to lower the number of uninsured drivers in Nevada (the numbers put forward by the Nevada Sage Commission in its 2010 report were at 19%).
Atkinson also stated that he had first-hand reports that there were too many uninsured drivers in the low-income groups because the cost of auto insurance premiums was way beyond their reach. While he made enquiries in his constituency he was told that the residents had a tough time paying their auto insurance premiums despite being good drivers with no convictions on their driving records.
Atkinson also stated that his proposal had been modeled on a similar program in the state of California which had extended auto insurance coverage to tens and thousands of motorists.
The Nevada Division of Insurance would administer this program and the cost of the insurance premiums would be lowered by around $184 per year, he stated.
Individuals have to meet a number of requirements in order to meet the eligibility criteria for the program and this includes having good driving records, as specified in the bill, stated Atkinson.
However, Sen. Michael Roberson, R-Las Vegas has stated that this bill will create wealth distribution, which he is planning to oppose. There is also a suggestion that large numbers of Clark County residents could participate due to the eligibility criteria for low-cost insurance which is at 250% of the federal poverty guidelines.
Roberson has clearly emphasized that he is going to vehemently oppose this sort of wealth distribution.
