New Mexico car insurance rates are one of the cheapest in the country at $1,133 annually, which is lower than the national average of $1,424. A sample profile was used to get average rates from various companies with different factors in mind, specifically: age, driving history, coverage level, credit score and location.
How Much is Car Insurance in New Mexico? Rates by Coverage Level, Age, Driving History and Location
The average cost of full coverage car insurance in New Mexico is $1,133 for a 40-year-old male driver with a clean driving record. For a policy that provides state minimum coverage only, the same driver would pay approximately $590 per year, a savings of $543.
Bear in mind that auto insurance rates depend on various factors unique to the applicant. For instance, the average cost of full coverage for a 16-year-old driver in New Mexico is $3,698, which is about $2,565 more than the 40-year-old would pay.
To account for how rates can vary, MoneyGeek calculated the average cost of auto insurance in New Mexico based on several elements.
Average Cost of Car Insurance in New Mexico: Summary
The average cost of auto insurance depends on a number of factors, but MoneyGeek examined those that have the greatest effect on rates in New Mexico. They include age, coverage level, driving record and credit scores.
Among these, your age and credit score are the variables that can impact premiums the most.
It's important to learn as much as you can about average car insurance rates for your specific needs and driver profile so that you know what to expect when shopping for insurance.
Average Costs of Car Insurance in New Mexico
Scroll for more
Why Are Car Insurance Rates Cheap in New Mexico?
The annual premiums in New Mexico are considered cheap compared to car insurance rates in other states. This is because the state has a moderate urban population, low highway density rate and a low rate of natural disasters.
Nearly one-quarter of the state's drivers live outside of urban areas, decreasing the risk of accidents on city roads. Coupled with New Mexico’s few occurrences of natural disasters and its low traffic density (which means the roads aren’t packed with cars), collisions and claims are again reduced. All of these factors result in lower insurance premiums.
If you did receive a high quote from an insurance company in New Mexico, it might be due to any of these variables being rated high in your specific location.
Average Cost of Car Insurance in New Mexico: Full Coverage vs. Minimum Coverage
Auto insurance premiums can change based on your level of coverage. If you want higher liability limits or full coverage insurance, expect that your premiums will increase.
For instance, the average car insurance cost in New Mexico for a policy that only follows state minimums is $590 per year, which is $543 less than a full coverage policy with 100/300/100 in liability limits (or $100,000 for bodily injury per person, $300,000 for bodily injury per accident, and $100,000 for property damage).
Average Cost of Car Insurance in New Mexico by Coverage Level
Minimum vs. Full Coverage Car Insurance Costs in New Mexico - By Company
Insurers in New Mexico charge different rates for policies even with the same coverage levels, which makes your company of choice a significant factor in the cost of auto insurance.
For instance, MetLife offers the cheapest liability-only auto insurance at $441 per year and the most affordable full coverage car insurance policy at $910 per year in New Mexico. On the other hand, Allied has the most expensive rates for both types of policies at $745 and $1,443 per year, respectively.
Average Annual Costs of Car Insurance in New Mexico - By Company
Scroll for more
How Much Is Car Insurance in New Mexico by Age
Your age is a major factor that insurers use to determine your premiums, especially for young drivers. Auto insurance policies for teens often have the most expensive premiums as they are more likely to get into accidents than older, more experienced drivers.
A 16-year-old will pay on average $3,698 per year for full auto insurance, which is $2,565 more than the cost of the same policy for a 40-year-old male driver with a good driving record. First-time drivers looking for car insurance should also expect expensive rates, similar to those of teenage drivers. In this case, it’s not their age as much as their lack of driving experience that increases the cost.
Average Costs of Full Coverage Car Insurance in New Mexico - By Age
How Does Driving History Affect Car Insurance Costs in New Mexico?
Insurance providers use your driving record as a predictor of your future performance. If you have a number of traffic violations or accidents on your record, you’ll be seen as high risk and may be charged more in premiums. Further, insurance premiums can become increasingly high with the severity of the violation.
For example, if you get one speeding ticket, insurers in New Mexico will charge you as much as $219 more per year on average. Similarly, if you get into an at-fault accident, insurers may add $580 per year to your policy. It’s still possible to get cheap auto insurance with a bad driving record, however — all you need to do is compare rates between insurers.
Average Costs of Full Coverage Car Insurance in New Mexico - By Driving History
Scroll for more
- Driving ViolationAnnual Premium
- Safe Driver$1,133
- Speeding Ticket$1,352
- At-Fault Accident$1,713
Credit Scores and the Cost of Car Insurance in New Mexico
Another rating factor that insurers use to set insurance prices is your credit score — the lower your score, the higher your premiums and vice versa. For example, having an excellent credit rating rather than a good one can save you $202 per year.
On the other hand, drivers with bad credit or a poor credit rating in New Mexico may see an $895 increase in their premiums each year compared to a person with a good score.
Average Costs of Full Coverage Car Insurance in New Mexico - By Credit Score
Scroll for more
- Credit ScoreAnnual Premium
- Below Fair$1,695
How Much Is Car Insurance in Your City?
MoneyGeek’s study examined auto insurance rates in New Mexico based on the city of Albuquerque. Keep in mind that rates can vary greatly, not just between states, but between cities within states as well.
This is because cities with denser populations or higher chances of natural disasters are more prone to accidents and claims, both of which can increase insurance premium rates.
Average Costs of Full Coverage Car Insurance in New Mexico - By City
Scroll for more
- CityAnnual Premium
Frequently Asked Questions About New Mexico Car Insurance Rates
MoneyGeek answers a couple of frequently asked questions below to help drivers understand New Mexico car insurance rates and make the best decision when buying auto insurance.
In collaboration with Quadrant Information Services, MoneyGeek collected car insurance quotes for a full coverage policy across New Mexico for a 40-year-old male driver with a clean driving record. Quotes were only altered to consider other factors that can affect auto insurance, such as coverage levels, age, driving record and credit score. Note that a full coverage policy follows 100/300/100 in liability limits, as described in the MoneyGeek methodology page.
MoneyGeek also collected the following data from their respective sources:
- Highway traffic density data from the 2019 study of the Federal Highway Administration.
- Uninsured motorist data from the 2019 study of the Insurance Research Council.
- Urban share of the population from U.S. Census Bureau’s latest data.
- Motor vehicle theft rate from the FBI Crime in the United States report for 2019.
About the Author