OTHER NEWS - May 19, 1992

Gas Tax Proposed for Car Insurance: The United States should scrap its maze of expensive, ineffective car insurance policies and adopt a single plan financed mainly through a 50-cent-per-gallon gasoline tax, a consumer group said. The pay-at-the-pump scheme would end most insurance sales and underwriting costs, ensure that all drivers are covered and provide incentives to conserve fuel, the Washington-based National Insurance Consumer Organization said. The 50-cent-per-gallon cost of coverage compares to what the NICO called a “hidden tax” of 83 cents per gallon now paid in insurance premiums. Ken Hacker of the American Insurance Assn. said the tax would be onerous.