Inflation has hit New Mexicans: Car Insurance in the State got 34.1% more expensive in 2023

New Mexicans (like all Americans) have been buffeted by rising costs in recent years. According to a new report from Marketwatch notes that insurance rose 34.1% in 2023 alone. According to the report, “New Mexico saw a steeper increase in auto premiums over the last year than most states in the U.S” which saw an overall increase of 16%.

Why is that? Again, from the report: Claims payouts are the single biggest expense for insurance companies, representing 70%-80% of auto insurers’ expenses in a given year. Medical claims are a significant portion of those payouts, meaning that increases in healthcare expenses result in increased payouts for individual medical claims.

The Cost of Car Repairs and Replacements Is Up

Finally, New Mexico has one of the highest rates of auto theft in the country. According to the National Insurance Crime Bureau (NCIB), New Mexico saw 475.5 car thefts per 100,000 residents in 2021. That rate is the fourth-highest of all states and the District of Columbia.

The authors of the report don’t see insurance costs coming down and, if Gov. Lujan gets her way with the forced shift to electric vehicles insurance prices could rise further as EV’s are more expensive to insure than are gas vehicles.

Below are some comparisons for the EV vs. gas powered models of similar cars. In the meantime, you can share your opposition to the forced move toward EV’s here.