How Much Is Car Insurance in New Mexico? (2023)

Many factors affect the cost of your car insurance policy, including your age, company, coverage levels, driving history, credit score and the number of drivers you include.

Young drivers could pay an average of $1,145 per year for a full coverage policy, but seniors may only pay $935 annually. State Farm offers the cheapest full coverage car insurance in New Mexico, while Kemper charges the highest rates.

The average cost of car insurance in New Mexico is $949 per year for full coverage, but your policy cost might differ since factors like coverage level and driving history impact your rates.

Drivers in New Mexico will pay the following average rates based on their driving history:

• Clean record: $949 per year
• Speeding ticket: $1,168 per year
• Accident: $1,368 per year
• DUI: $1,440 per year

These rates are for a full coverage policy. You might pay different rates if you opt for minimum coverage.

Car insurance policies in New Mexico are moderately priced compared to policies throughout the country. The primary factors behind these affordable rates could be lower vehicle theft rates, lower urban population density, medium traffic density and affordable insurers in New Mexico.

The average cost of car insurance is a misleading statistic, as rates vary significantly based on insurers. State Farm provides the cheapest car insurance in New Mexico, charging an annual average of $254 ($644 annually for full coverage). Allstate’s policies are the most expensive, costing an average of $576 per year ($1,044 per year for full coverage).

Full coverage car insurance costs more than minimum coverage, but you can still find affordable policies by shopping around.

On average, the cost of car insurance in Mexico can range from $387 annually for minimum coverage to $1,105 per year for a full coverage policy with increased liability limits. Your insurance cost will go up if you buy comprehensive and collision insurance and increase your liability limits. Choosing a policy with a higher deductible can help you lower your car insurance costs.

A minimum coverage policy in New Mexico is the most affordable type of car insurance available. These policies will have the lowest liability limits, and you won’t get comprehensive and collision insurance with minimum coverage.

Insurance companies often provide policies with increased liability limits shortened to 50/100/50 or 100/300/100. The coverage limits of a 50/100/50 policy are:

• $50,000 in bodily injury liability insurance per person
• $100,000 in bodily injury liability insurance per accident
• $50,000 in property damage liability insurance per accident

Most providers offer a maximum liability option of 300/500/300. Purchasing liability insurance ensures protection against damage or injuries to others, while comprehensive and collision insurance protects against damage to your vehicle. A full coverage policy includes both of these coverages.

Age generally affects policy costs, but car insurance for young or inexperienced drivers is more expensive. New Mexico drivers will pay the following average costs for full coverage:

• 22–29: $1,145 per year
• 30–59: $949 per year
• 60+: $935 per year

You won’t pay significantly different rates if you’re 30 to 59, but costs will slightly decrease in your 60s and beyond. Drivers in their 20s or those who are over 30 but new to driving will pay higher rates.

The insurers charge significantly more to insure teen drivers in New Mexico. A 16-year-old driver pays an average of $2,615 annually on a family plan with full coverage, while an individual plan costs $5,643 annually.

But these costs get lower as you age. The average annual cost of a 19-year-old on a family plan is $2,078, while it’s $1,796 for a 22-year-old.

Your rates will differ based on your gender. Male drivers will generally get expensive quotes, as seen in the $228 price difference between male and female drivers who are 16 in the state. Fortunately, many insurers offer affordable car insurance in New Mexico.

It costs an average of $1,173 annually to insure a new car in New Mexico with full coverage. This is 26% more than the average cost of insuring an older car, which is $932.

The primary factors behind the higher insurance cost of new cars are the increased risk of theft, higher actual cash value (ACV) and cost of repairs.

The actual cash value (ACV) of your vehicle relates to how much an insurer will pay in case of an incident, which is why older cars with lower ACVs have lower insurance costs.

Since new cars will have a higher ACV, the driver of such vehicles should consider getting full coverage car insurance to protect them against damage to their vehicle.

Your driving history significantly affects how much you pay for car insurance in New Mexico. These are the average full coverage policy costs based on various driving violations:

• Clean record: $949 per year
• Speeding ticket: $1,168 per year
• Accident: $1,368 per year
• DUI: $1,440 per year

You will generally pay higher rates if you have a severe violation on your record. Since most insurers will give you expensive quotes, you should shop around to find the cheapest car insurance in New Mexico for drivers with bad records.

Your credit history could play a significant role in determining your car insurance rates. A driver with a bad credit score pays an average of $1,328 for a policy, while the same policy will cost an average of $786 annually for a driver with excellent credit.

Insurance providers will charge you the following average rates for full coverage based on your credit-based insurance score:

• Excellent: $786 per year
• Good: $910 per year
• Fair: $1,031 per year
• Below fair: $1,163 per year
• Poor: $1,328 per year

Insurance companies may penalize you if you have a bad credit score, so it’s best to shop around to find the cheapest car insurance for drivers with bad credit.

Where you live in New Mexico also significantly affects your car insurance costs. The average car insurance premium in Las Cruces is $916 annually. If you live in Albuquerque, you will pay an average of $1,210 annually. Insurers generally charge expensive rates if the driver lives in an area with a denser population or higher car theft rates.

We answered the following frequently asked questions to make it easy for you to understand the average car insurance cost in New Mexico.