GEICO provides New Mexico's most affordable car insurance, with monthly rates of $46 for minimum coverage and $95 for full coverage. Drivers save $16 monthly (19%) compared to state averages. Get quotes from Central, State Farm, Kemper and Progressive too.
Cheapest Car Insurance in New Mexico
Updated: August 13, 2025
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Key Takeaways
GEICO, Central and State Farm offer the cheapest car insurance rates in New Mexico, with savings up to 19% below the state average.
Car insurance costs in New Mexico start at $26 monthly for minimum coverage and $95 for full coverage policies on average.
To find affordable coverage, research top companies, look for discounts and compare multiple provider quotes.
Who Has the Cheapest Car Insurance in New Mexico?
| Geico | $46 | $95 | -19% |
| Central Insurance | $32 | $109 | -19% |
| State Farm | $37 | $111 | -15% |
| Kemper | $45 | $108 | -12% |
| Progressive | $60 | $99 | -9% |
*These rates are for a 40-year-old with good credit, a clean driving record and a 2012 Toyota Camry across all ZIP codes in the state.
LEARN MORE ABOUT THE BEST CHEAP CAR INSURANCE IN NEW MEXICO
We've created additional guides below to help you in your search for the best and cheapest car insurance in New Mexico:
Best Car Insurance Rates by Category in New Mexico
Central offers the cheapest rates in four out of our 10 driver categories, while State Farm leads in three categories with affordable rates for drivers with violations. Find your specific rates in the table:
| Young Drivers | Central Insurance | $60 |
| Adult Drivers | Central Insurance | $31 |
| Senior Drivers | State Farm | $47 |
| Drivers With An Accident | Central Insurance | $32 |
| Drivers With A DUI | State Farm | $40 |
| Drivers With A Speeding Ticket | State Farm | $40 |
| Drivers With Bad Credit | Kemper | $77 |
| Drivers With Low Income | Geico | $64 |
| Drivers With Newer Cars | Geico | $49 |
| Drivers With Old Cars | Central Insurance | $26 |
*Rates for the categories above are based on a profile of a 40-year-old with good credit, a clean driving record and a 2012 Toyota Camry across all ZIP codes in the state. Young drivers refer to 16 to 25-year-olds, adults 26 to 64-year-olds and seniors 65+ years of age.
Compare the Cheapest Car Insurance in New Mexico for You
The tables above show overall winners, but your cheapest option depends on your specific situation. For example, Central offers the lowest rates at $168 monthly for adult drivers with poor credit and an accident record who want 100/300/100 full coverage. Filter the table to match your exact situation:
Data filtered by:Results filtered by:
Select
Age Group:Adult Drivers
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Gender:Female
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
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Credit Alignment:Below Fair
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Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| Central Insurance | $168 | $2,015 | -49% |
| Kemper | $185 | $2,225 | -44% |
| Geico | $250 | $3,001 | -24% |
| Farm Bureau | $301 | $3,614 | -8% |
| Nationwide | $317 | $3,800 | -4% |
*Young drivers refer to 16 to 25-year-olds, adults 26 to 64-year-olds and seniors 65+ years of age.
Cheapest Car Insurance in New Mexico by City
Where you live in New Mexico affects your insurance costs based on local crime, accidents and traffic density. Central charges as little as $24 in Medanales but GEICO costs $47 in Hobbs. Here are the cheapest providers for every New Mexico city:
Data filtered by:Results filtered by:
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City:Abiquiu
| Abiquiu | Central Insurance | $28 | -33% |
*The lowest rate referenced is for a minimum coverage policy for a 40-year-old with good credit and no driving violations.
How to Get the Cheapest Car Insurance in New Mexico
Finding affordable insurance companies is just one part of getting the best car insurance rates in New Mexico. Here are proven ways to save the most on auto insurance.
- 1
Compare Multiple Insurance Providers
Get quotes from several insurance companies through different channels including independent agents, insurance websites and comparison tools. Your rates can vary significantly depending on how you shop, so try multiple methods to find the best deal.
- 2
Determine Your Coverage Needs
Know what coverage you need before shopping to avoid paying for unnecessary add-ons while ensuring you have enough protection. Understanding your required coverage helps you make smarter choices about optional coverages.
- 3
Consider Lower Coverage Amounts
If cost is a major concern, you might save money by choosing lower coverage levels or higher deductibles. Just be sure to evaluate your financial situation and risk tolerance before reducing any coverage.
- 4
Research Costs and Discounts
Look into average auto insurance costs for your driver profile to understand typical rates. Check for discounts you qualify for and compare home and auto insurance bundle prices to maximize your savings.
- 5
Look Into Alternative Insurance Options
Consider pay-per-mile car insurance if you don't drive much, or try telematics programs that track driving habits for potential savings. Some car manufacturers also offer their own insurance programs with competitive rates.
- 6
Improve Your Risk Profile
Work on your credit score and maintain safe driving habits to qualify for better rates. Insurance companies often offer lower premiums to drivers they consider less risky.
- 7
Choose a Cost-Effective Vehicle
If you're shopping for a car, pick a cheaper car to insure to reduce your premiums. Older vehicles with good safety ratings and lower repair costs typically cost less to insure.
Risks of Getting the Cheapest Car Insurance in New Mexico
New Mexico requires drivers to carry liability insurance with minimum coverage of 25/50/10. This means you need $25,000 for injuries to one person, $50,000 total for injuries in one accident and $10,000 for property damage coverage. But minimum coverage leaves you exposed to major financial risks:
Vehicle damage if you're at fault won't be covered
Without collision coverage, you'll pay all repair costs if you cause an accident. In New Mexico, average property damage claims hit $4,800 in 2023, according to the Insurance Information Institute. That money comes straight from your pocket with minimum coverage. Add collision coverage to protect against expensive repairs.
Weather risks make damage to your car more likely and aren't covered
New Mexico gets hit with severe weather that damages cars regularly. Weather-related property damage averaged $3,200 per incident in 2023, with hail and flash floods being common threats. Basic coverage won't pay for weather damage. Add comprehensive coverage to protect against severe weather that frequently hits New Mexico.
Bodily injury damage is more likely to be higher than the minimum limits
New Mexico's minimum bodily injury coverage of $25,000 per person often isn't enough for serious accidents. Average bodily injury claims in New Mexico reached $22,800 in 2023. With rising medical costs, consider increasing coverage to 50/100/50 for better financial protection against lawsuits.
Not having uninsured motorist coverage opens you up to unexpected costs
New Mexico has a serious uninsured driver problem, with 24.1% of drivers lacking insurance according to the Insurance Information Institute. If an uninsured driver hits you, you'll face steep out-of-pocket costs without uninsured motorist coverage. Legal action against uninsured drivers rarely recovers damages. Add uninsured motorist coverage to protect yourself financially in these situations.
Vehicle theft damage is more likely and uncovered
Car theft is a real problem in New Mexico, according to the National Insurance Crime Bureau. Without comprehensive coverage, you get nothing if your car's stolen or damaged during a theft. The average stolen car claim tops $9,000, so adding comprehensive coverage is worth it in high-risk areas.
Cheap Car Insurance in New Mexico: Bottom Line
GEICO offers the lowest car insurance rates in New Mexico for most drivers and coverage types, according to our analysis. While the cheapest option is tempting, don't make price your only factor. Get as much coverage as you can afford to protect your finances when accidents happen.
Cheap Car Insurance in New Mexico: FAQ
Below we answer common questions about car insurance to help you find the right coverage at affordable rates.
What are the cheapest car insurance companies in New Mexico?
GEICO provides the most affordable car insurance in New Mexico, with average annual rates of $552 for minimum coverage and $1,140 for full coverage. Central, State Farm, Kemper and Progressive also offer competitive rates.
Who has the cheapest car insurance rates for young drivers in New Mexico?
Central provides the most affordable rates for young drivers in New Mexico, with monthly premiums starting at $60 for minimum coverage.
Who offers the cheapest car insurance rates for seniors in New Mexico?
Senior drivers in New Mexico can find the most competitive rates with State Farm, which offers monthly premiums starting at $47 for drivers 65 and older.
Who has the cheapest car insurance in New Mexico for bad credit?
Kemper provides the most affordable rates for bad-credit drivers in New Mexico, with monthly premiums averaging $77 for minimum coverage and $170 for full coverage.
Who has the cheapest car insurance in New Mexico with an accident?
Central offers the most affordable car insurance rates for New Mexico drivers with an accident history, starting at $32 per month for minimum coverage.
Who has the cheapest car insurance in New Mexico with a DUI?
State Farm provides the cheapest car insurance after a DUI in New Mexico, with rates of $40 monthly for minimum coverage and $117 monthly for full coverage.
Who has the cheapest car insurance in New Mexico for those with a speeding ticket?
New Mexico drivers with a speeding ticket can find the lowest insurance rates with State Farm, charging $40 monthly for minimum coverage and $117 for full coverage.
Should you buy the cheapest car insurance in New Mexico?
Buying the cheapest insurance saves money upfront, but you need enough coverage to protect against major losses. GEICO balances low prices with solid coverage options in New Mexico.
How We Found the Most Affordable Car Insurance in New Mexico
MoneyGeek collected auto insurance data from the New Mexico Department of Insurance and Quadrant Information Services. We analyzed quotes from 12 major insurers and reviewed more than 200 million rate comparisons across every residential ZIP code in New Mexico.
New Mexico Driver Profile
Our analysis started with a standard driver profile to find the cheapest rates:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
- Good credit
- Valid license
- Currently insured
- No claims history
We adjusted this sample profile, as specified, to find the cheapest option for various driver backgrounds.
Standard Coverage Levels in New Mexico
We compared car insurance companies in New Mexico that offer minimum and full coverage policies. We set the limits of the minimum coverage car insurance policy to the minimum amount required by law in New Mexico.
The minimum coverage liability limits in New Mexico are:
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $25,000 per accident for property damage
For full coverage policy rates, we used the following liability limits:
- $100,000 for bodily injury liability per person
- $300,000 for bodily injury liability per accident
- $100,000 for property damage liability
- Comprehensive and collision coverage with a $1,000 deductible
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.