Insured In New Mexico: How Many?

In 2021, over ten percent of New Mexico's population was uninsured, while over a third were insured through their employers. New Mexico has one of the highest rates of uninsured drivers, and the average cost of car insurance in the state is $1,505 per year or $125 per month. The average cost of health insurance in the US is $1,682 per year.

Health insurance status in 2021

In 2021, over 10% of the total population of New Mexico was uninsured, while over a third of the population was insured through their employers. This was an improvement from previous years, with New Mexico's uninsured rate converging towards the US national average following the enactment of the Affordable Care Act and state Medicaid expansion.

The lack of health insurance coverage is associated with delayed access to healthcare and an increased risk of chronic disease and mortality. Those without insurance are less likely to receive recommended preventive services, such as cancer screening and immunisations.

In New Mexico, the percentage of uninsured persons varies depending on age group, with separate figures for those aged 0-18, 18-64, and 65+. The percentage of uninsured persons also varies depending on the county and small area within New Mexico.

Car insurance costs in 2024

Car insurance costs have been on a steep upward trajectory in recent years, and 2024 is no exception. According to various reports, the average cost of car insurance in the United States has increased by 26% since 2023, with the annual cost for full-coverage car insurance reaching $2,543. This is a significant jump from the previous year's average of $2,014 and an even larger increase from the 2022 average of $1,771.

The rise in car insurance costs can be attributed to several factors. Firstly, car prices increased during the pandemic, making vehicles more expensive to replace or repair in the event of accidents. Secondly, there has been an increase in dangerous driving behavior, leading to more claims and more severe claims. The consumer price index (CPI) shows that prices for car insurance are up 20.6% in the past year, outpacing the overall inflation rate.

The impact of these factors is evident in the underwriting losses of personal auto insurance companies, which amounted to $33.1 billion in 2022, with results sliding further in the first half of 2023. As a result, insurance companies are course-correcting, and drivers are facing skyrocketing premiums.

While the rate of increase may slow down in 2024 compared to previous years, drivers can still expect to pay more for their car insurance. Experts predict that auto insurance prices will continue to soar, even as overall inflation eases, due to the lag in getting rate increases approved by state regulators.

The cost of car insurance varies depending on several factors, including age, location, driving history, credit score, and vehicle type. For example, in New Mexico, the average annual cost of car insurance is $1,505, or $125 per month, which is lower than the national average of $1,682. However, within New Mexico, drivers in high-population cities like Albuquerque pay more for insurance than those in less populous areas like Santa Fe.

To save on car insurance, it is recommended to shop around and compare quotes from different companies, as prices can vary significantly. Other ways to reduce costs include improving your credit score, taking a defensive driving course, and bundling insurance policies.

In summary, car insurance costs in 2024 are expected to continue rising, albeit at a slower pace compared to previous years. The increase in costs is driven by various factors, including rising car prices, more frequent and severe claims, and the lag in getting rate increases approved. As a result, drivers are facing higher premiums, with the annual cost for full-coverage insurance surpassing $2,500 on average. To mitigate these rising costs, consumers are advised to compare rates and take advantage of various cost-saving strategies.

Cheapest car insurance companies

While the cost of car insurance depends on a range of factors, including age, gender, driving history, credit score, and location, there are some insurance companies that offer cheaper rates than others in New Mexico.

USAA, State Farm, and Geico are consistently ranked as the cheapest car insurance companies in New Mexico. Central Insurance is also mentioned as one of the cheapest options by some sources, while Nationwide is also worth considering.

Cheapest Car Insurance Rates for Different Types of Drivers

Teen Drivers

USAA and State Farm are the cheapest options for teen drivers in New Mexico, with USAA offering the lowest rates for both male and female 17-year-old drivers.

Young Adult Drivers

USAA and State Farm again offer the cheapest rates for 25-year-old drivers, with USAA being the cheapest for both male and female drivers.

Adult Drivers

USAA has the lowest rates for 35-year-old married male and female drivers, while State Farm is the cheapest option for other adults.

Senior Drivers

Married 60-year-old male and female drivers will find the lowest rates with USAA, while State Farm is the cheapest option for other seniors.

Drivers with a Speeding Ticket

State Farm is the cheapest option for drivers with a speeding ticket, with an average annual rate of $1,493.

Drivers with an Accident on their Record

State Farm has the lowest rates for drivers with an accident on their record, at an average of $1,600 per year.

Drivers with a DUI

State Farm offers the cheapest rates for drivers with a DUI, with an average annual premium of $1,493. Progressive is another good option, with an average rate of $1,549 per year.

Drivers with Bad Credit

Geico is the cheapest option for drivers with bad credit, with an average monthly rate of $156. USAA is also worth considering, with an average monthly rate of $134.

Average cost of car insurance by age

The cost of car insurance in New Mexico varies depending on age, gender, driving history, credit score, and location.

Age plays a significant role in determining car insurance costs in New Mexico. Younger drivers, especially those under 25, tend to pay higher premiums due to their lack of driving experience and are often considered high-risk. As drivers mature, premiums generally decrease.

Here's a breakdown of average annual premiums for full coverage in New Mexico by age group:

• Drivers aged 22 to 29: $1,324
• Drivers aged 30 to 59: $1,097
• Drivers aged 60 and above: $1,075

Additionally, gender influences insurance rates, with men typically paying more than women in certain age groups. This is because men are statistically more likely to engage in risky driving behaviors like speeding.

For example, the average annual cost of car insurance for a 16-year-old male driver added to a family policy is $2,615, while a female driver of the same age would pay around $2,462.

Average Cost of Car Insurance by Coverage Level in New Mexico

The level of coverage you choose also affects your insurance premium. Minimum coverage in New Mexico, which includes bodily injury and property damage liability, costs around $41 per month or $494 annually. In contrast, full coverage, which adds comprehensive and collision coverage, averages $91 per month or $1,097 per year.

You can further customize your coverage by selecting different deductible amounts. A higher deductible will lower your premium, but you'll have to pay more out of pocket if you file a claim.

Average Cost of Car Insurance by Driving Record in New Mexico

Your driving record is a significant factor in determining your insurance rates. A clean driving record will help you secure more affordable premiums, while accidents, tickets, or violations will increase your costs.

On average, a speeding ticket conviction increases rates by 17%, while a DUI on your record leads to a 71% increase. The impact of these violations on your premium can last for several years, with a DUI affecting your rates for up to seven years.

Average Cost of Car Insurance by Credit Score in New Mexico

In New Mexico, your credit score has a notable influence on your car insurance rates. Drivers with poor credit scores may pay up to 94% more in premiums compared to those with good or excellent credit scores. Improving your credit score can be an effective way to reduce your insurance costs.

Car insurance rates by vehicle type

The make and model of your vehicle can influence your car insurance rate in New Mexico. Luxury vehicles, those with high repair costs, and those with low safety ratings tend to be more expensive to insure.

• Ford F-150: $1,530
• Honda Civic: $1,530
• Toyota RAV4: $1,530
• Ford Transit Connect Titanium: $1,276
• Mini Cooper SE: $1,269
• Maserati Quattroporte: $5,035

Frequently asked questions