On February 6, 2025, the New Mexico Health & Human Services Committee voted 6 to 2 in favor of legislation that could increase auto insurance rates by prohibiting the use of credit-based insurance scores. The American Property Casualty Insurance Association (APCIA) and the Independent Insurance Agents of New Mexico (IIANM) are urging lawmakers to reject HB 80.
"HB 80 may be well-intended, but it will hurt New Mexico drivers," said Matt Hunton, CEO of IIANM. "This bill will also hurt the small businesses that independent agents operate throughout New Mexico. This bill creates an uneven playing field for direct writers and independent agents. With the cost of everything increasing and auto insurance claims costs rising, now is not the time to take away discounts provided to the lowest risk drivers."
Credit information has been used for decades as a tool for insurers to predict claims likelihood and severity. Removing this tool could lead to increased premiums for lower-risk drivers.
"HB 80 would raise auto insurance rates for some of the most respected members of our communities—from teachers, nurses, and seniors to law enforcement, firefighters, and military officers," said Walter Gonzales, APCIA assistant vice president for state government relations. "When insurers can accurately underwrite risks, consumers benefit from accurate, more equitable rates and more choices in a stable insurance market."
Currently, New Mexico drivers with good credit save $185 annually compared to those with average credit; those with excellent credit save $537 annually. Studies indicate that most consumers receive discounts when credit information is considered.
The bill will proceed to the House Commerce and Economic Development Committee for further review. APCIA and IIANM continue to advocate against this legislation.
The Independent Insurance Agents of New Mexico represents independent agents in New Mexico, supporting them through resources and advocacy. The American Property Casualty Insurance Association is a national trade association representing home, auto, and business insurers.
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