Saturday, August 9, 2025

Auto insurance premiums see biggest price increase in 14 years

The average cost of auto insurance premiums was 8% higher in January compared to the same month a year earlier, the biggest annual increase in over 14 years.

Data from the national statistics agency INEGI shows that the last time there was a larger year-over-year increase was in November 2007, when premiums were up 8.4%.

Premium increases have been above the level of inflation every month since August. The inflation rate last month was 7.1%.

The higher insurance costs cannot be explained by an increase in vehicle theft as the incidence of that crime has declined during three consecutive years. According to the Mexican Association of Insurance Institutions, 62,000 insured cars were stolen last year, the lowest figure since 2015. Half of all theft incidents occurred in just three federal entities – Mexico City, México state and Jalisco.

Ernesto O’Farrill, president of the financial conglomerate Grupo Bursamétrica, told the newspaper El Universal that higher costs for auto parts due to global shortages and the depreciation of the peso against the U.S. dollar are behind the price hikes.

The average cost of a greenback in January was 20.5 pesos, according to the Bank of México, up 2.9% from the same month in 2021. Global supply chain disruptions linked to the pandemic have affected the availability of many products beyond spare parts.

According to the federal government’s National Commission of Insurance and Finance, the total value of auto insurance policies sold last year was 108 billion pesos (US $5.3 billion), a slight decrease compared to 2020. Weaker sales of new cars was behind the decrease.

All motorists using federal highways have been required to have insurance since 2019, while coverage is obligatory in about half of all states regardless of the roads on which the vehicle is used.

With reports from El Universal 

Have something to say? Paid Subscribers get all access to make & read comments.
News quiz

The MND News Quiz of the Week: August 9th

0
Boats, bats and economic backing: Have you been paying attention to the news this week?
vehicle on fire

Suspect arrested in Monday killing of Reynosa prosecutor

1
The alleged assasin belongs to a faction of the Gulf Cartel, known as major fuel traffickers in the region .
A heat map of Mexico showing temperatures over 40 C along the northern border, throughout Sonora and in parts of the Baja peninsula

In Ivo’s wake, intense heat and stormy conditions continue to affect northwest Mexico 

1
Mexicali set a new record Thursday when temperatures hit a dangerous 52.7 degrees C (127 degrees F).
BETA Version - Powered by Perplexity