New Mexico drivers pay about $1,388 per year for full coverage car insurance and $599 for minimum coverage, based on a 40-year-old driver with good credit and no driving violations. Your rates will vary depending on your unique profile.
Average Cost of Car Insurance in New Mexico
Updated: August 15, 2025
Advertising & Editorial Disclosure
Key Takeaways
Depending on driver profile, coverage and location, car insurance costs can be between $599 and $5,324 per year on average in New Mexico.
Car insurance costs in New Mexico are typical for the U.S., with the state placing 23rd for minimum coverage and 27th for full coverage affordability.
To secure the cheapest car insurance in New Mexico, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In New Mexico
| Full Coverage | $116 | $1,388 |
| Minimum Coverage | $50 | $599 |
*Rates are based on a 40-year-old driver with good credit and a clean record driving a 2012 Toyota Camry LE. Minimum coverage means basic liability required by state law. Full coverage includes 100/300/100 liability limits plus comprehensive and collision with $1,000 deductibles.
Average New Mexico Car Insurance Cost by Category
Car insurance varies widely depending on your unique characteristics, location and car. Here are average rates for common categories of drivers so you can see how pricing can vary.
| Young Drivers | $120 | $264 |
| Adult Drivers | $49 | $115 |
| Senior Drivers | $67 | $143 |
| Drivers With An Accident | $68 | $154 |
| Drivers With A DUI | $76 | $175 |
| Drivers With A Speeding Ticket | $60 | $139 |
| Drivers With Bad Credit | $133 | $290 |
| Drivers With Low Income | $85 | $184 |
| Drivers With Newer Cars | $64 | $150 |
| Drivers With Old Cars | $47 | $108 |
We modified rates based on the same 40-year-old driver profile with these changes: young drivers (16 to 25), adults (26 to 64), seniors (65+), low income (fair credit), bad credit (poor credit), newer cars (2025 Toyota Camry LE), older cars (2007 Toyota Camry LE). Driving violation profiles include only that specific violation.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Personalized Average New Mexico Car Insurance Costs
General driver categories give you a starting point, but your costs will be different. Our filterable table below shows you exact rates based on your personal details.
Data filtered by:Results filtered by:
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Select
Age Group:Adult Drivers
Select
Gender:Female
Select
Credit Alignment:Below Fair
Select
Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| 100/300/100 Full Cov. w/$1,000 Ded. | 335 | 4022 |
*Rates for the age groups are based on the following assumptions: young drivers (16 to 25), adults (26 to 64), seniors (65+).
Average New Mexico Car Insurance Cost by City
Where you live in New Mexico directly affects your car insurance costs. Annual rates for full coverage range from $1,134 in Alamogordo to $1,711 in Albuquerque. Below you can compare both full and minimum coverage rates for your city and other areas across the state.
Data filtered by:Results filtered by:
Select
City:Abiquiu
| Full Coverage | $119 | $1,431 |
| Minimum Coverage | $51 | $612 |
*Rates are for a 40-year-old driver with good credit and no driving violations who is insuring a 2012 Toyota Camry LE. Minimum coverage represents the minimum required liability coverage in the state while full coverage is representative of a 100/300/100 liability policy with a $1,000 deductible for comprehensive and collision coverage.
Is New Mexico Car Insurance Expensive?
New Mexico ranks 23rd for minimum coverage and 27th for full coverage affordability, placing it in the middle range for car insurance costs in 2025. This reflects statewide averages, and affordability rankings for your city differ from the rest of the United States.
Why Is Car Insurance More Expensive In New Mexico?
Below we'll explore the reasons for New Mexico's high car insurance rates:
Extreme auto theft problems
New Mexico ranks fifth in the nation for car thefts, with over 10,000 cars stolen statewide in 2023. This translates to a rate of 534 thefts per 100,000 cars, which is 74% higher than the national average. Albuquerque has been particularly affected, ranking among the top cities nationally for auto theft, with proximity to international borders contributing to the problem.
Monsoon season and flash flooding
New Mexico experiences severe monsoon seasons from July through August, bringing intense rainfall that can cause flash floods with little warning. The state has experienced over 1,500 wildfires per year, burning 300,000 to 400,000 acres annually. These weather events, combined with the state's varied terrain, create significant risks for car damage from flooding, hail and debris.
Below-average insurance costs
Despite the risks, New Mexico offers relatively affordable auto insurance rates. Full coverage averages less than national rates, making New Mexico one of the more affordable states for auto insurance despite the elevated risk factors.
Severe weather and hail damage
New Mexico faces significant weather-related risks including severe thunderstorms, large hail and strong winds. The state experiences approximately 1,500 wildfires annually, with monsoon season bringing intense localized rainfall and flash flooding. These weather events can cause substantial car damage, particularly from hail and flooding in areas that haven't received direct rainfall.
High-risk young driver demographics
New Mexico allows age and gender as rating factors, resulting in higher premiums for young drivers. Drivers under 25 face substantial rate increases, with 25-year-olds paying over 20% more than older drivers for both minimum and full coverage. Young men face the highest rates, with annual premiums averaging higher than young women.
Border proximity and cross-border crime
New Mexico's proximity to the Mexican border contributes to higher auto theft rates. Cars are often stolen for parts or driven across the border for resale. This geographic factor creates unique challenges for law enforcement and increases the risk of car theft, particularly in cities like Albuquerque where theft rates exceed state averages.
Limited insurance requirements
New Mexico requires only basic liability coverage with minimum limits of $25,000 per person and $50,000 per accident for bodily injury, plus $10,000 for property damage. The state doesn't require uninsured motorist coverage, comprehensive or collision coverage, leaving many drivers underinsured. This minimal requirement structure contributes to the high percentage of uninsured and underinsured drivers on the roads.
How To Lower Car Insurance Costs In New Mexico
Want to save even more on New Mexico's moderate rates? Here's how to lower your car insurance costs:
- 1
Decide on coverage needs beforehand
Deciding on your coverage needs is important so you're not oversold on too much coverage. Consider your financial situation, driving habits, car details and risk tolerance when making this decision.
- 2
Research costs and discounts
To save money for your profile, know the average costs for your preferred coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance bundles for the most balanced perspective.
- 3
Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4
Compare quotes through multiple means
Compare quotes from multiple companies to find the best deal possible. Use different means of getting quotes, such as comparison sites and independent agents, since pricing varies widely by method.
Cost of Car Insurance in New Mexico: Bottom Line
New Mexico car insurance costs fall in the middle range compared to other U.S. states, making strategic shopping important to secure the best possible rates. Decide on your coverage needs beforehand, do thorough research and compare quotes from the right insurers.
Cost of Car Insurance in New Mexico: FAQ
Below are answers to frequently asked questions about New Mexico car insurance costs:
How much is New Mexico car insurance per month?
New Mexico car insurance costs $50 for minimum coverage and $116 for full coverage policies. Rates range from $47 to $290 monthly, depending on your unique driver profile and coverage choice.
What factors affect New Mexico car insurance costs?
Primary factors include driving history, age and location. Drivers with accidents, violations or those who are young face higher rates, while urban areas cost more than rural ones. Car type, coverage amounts, credit score and annual mileage also impact premiums, along with factors like gender and marital status in some states.
Why is New Mexico car insurance so expensive?
New Mexico has the second-highest uninsured driver rate at 25% and ranks fifth nationally for car theft with over 10,000 stolen in 2023. The state experiences severe monsoon seasons with flash flooding and faces extreme weather risks including wildfires. Despite these challenges, New Mexico offers affordable rates with full coverage averaging $1,388 annually.
How expensive is New Mexico car insurance?
Auto insurance costs in New Mexico fall into the moderate range nationally, with the state placing 23rd for minimum coverage and 27th for full coverage affordability, putting it squarely in the middle tier of U.S. states.
How We Determined New Mexico Car Insurance Costs
We used the following profile and modifications of this profile to determine New Mexico auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- KOAT. "New Mexico Ranks 5th in Car Thefts, but Albuquerque Police Report Progress ." Accessed August 15, 2025.