New Mexico drivers have seen rapidly increasing car insurance premiums in recent years, but relief may be on the way for at least some motorists in the Land of Enchantment. Liberty Mutual, the sixth-largest U.S. auto insurer by market share, plans to lower its car insurance rates by 10% in New Mexico, P&C Specialist reported.
Liberty Mutual’s average prices for car insurance in New Mexico are $224 per month for full coverage and $112 per month for liability-only insurance, according to Insurify data. If implemented, the rate reductions would lower New Mexico’s averages to $202 and $101 per month, respectively.
The insurer pointed to improving profitability as the reason for the rate decrease.
More good news for New Mexico drivers
Citing an internal memo, P&C Specialist also said Liberty Mutual will relax its underwriting requirements in late May. Rate cuts will be effective for new policies starting May 9.
Steep underwriting losses in states across the country have prompted Liberty Mutual and other auto insurers to dramatically increase rates over the past few years. Car insurance rates rose 24% nationally in 2023, Insurify data shows, and data analysts predict an additional 7% increase in 2024.
But in early 2024, multiple insurers, including Liberty Mutual, have reported a return to profitability for auto insurance.
What’s next?
P&C Specialist reported a Liberty Mutual spokesperson confirmed the anticipated rate increases but said the insurer hadn’t yet filed an application with the New Mexico Superintendent of Insurance’s office for permission to change its rates. New Mexico insurance laws require companies to get state approval before making any changes to their rates, forms, policies, or procedures.
Rate filing requests can take months to move through a state insurance department, so it’s impossible to predict exactly when the state may approve the request once it receives it.
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