The Best Cheap Car Insurance in New Mexico for 2020

The Best Cheap Car Insurance Companies for New Mexico Drivers in 2020 

In the table below, you will see a list of five popular insurance companies offering the best and cheapest car insurance in New Mexico. Please note that the numbers below are an estimate and may not reflect the exact rate you will be given based on your unique circumstances.

Your insurance rates are impacted by everything from your driving history to your ZIP code, so keep in mind that your rates may not be exactly the same as what is reflected in the table above. There are also a number of discounts available from each insurance company that may or may not apply to you, so you will want to get a quote to know exactly how much you will be charged for your car insurance.

The Best Car Insurance Companies in New Mexico for 2020

To determine which insurance companies are the best, MoneyGeek uses a unique rating system that combines AM Best’s financial strength ratings with JD Power’s customer satisfaction score, claims score and affordability score. Using this information, we have compiled a list of the highest-scoring companies in the chart below.

The higher the score, the more affordable, stable and dependable the company is. However, everyone has different needs, so just because a company has the highest score in one category or another doesn’t mean it is automatically the best choice for you.

Market Share by Company

According to the National Association of Insurance Commissioners, State Farm and Berkshire Hathaway (the parent company of GEICO) are the largest insurers in New Mexico. State Farm has 19.18% of the market share while GEICO has 15.67%, which means that just over 35% of insurance plans in New Mexico are written by these two companies.

Cheapest Car Insurance for Drivers With a DUI in New Mexico

Part of your insurance rate is determined by your driving history, including moving violations and DUI convictions. When it comes to DUI — or in New Mexico, DWI (Driving While Intoxicated) — it is important to understand that this isn’t always limited to alcohol use. Drug use while driving can also earn you a DUI. In New Mexico, a DUI can earn you up to 90 days in jail along with a $500 fine and a suspended license for up to one year.

The following estimates showcase what drivers in New Mexico who have a DWI can expect to pay in auto insurance.

In New Mexico, your driver’s license can be revoked for being charged with a DWI. If you are convicted of a 4th DWI, your license will be revoked for the rest of your life. Typically speaking, a DUI or DWI has a significant impact on your car insurance rates, even doubling rates in some cases, but there are some cheap car insurance options for people with a DUI in New Mexico. If you have a DUI on your record, you will want to get a quote from multiple companies to make sure you are getting the lowest possible rates.

Cheapest Car Insurance for NM Speeding or Distracted Driving Tickets

According to the National Highway Traffic Safety Administration, there were 350 crashes in 2018 that were caused by distracted driving. The biggest cause of distracted driving is using a cell phone while driving, but it also includes people who are eating, putting on makeup or doing something other than focusing on the road while they drive. If you receive a ticket for distracted driving or speeding, that will increase your insurance rates. The chart below outlines what drivers in the state can expect to pay if they’re penalized for distracted driving or speeding.

Some insurance companies will allow you to avoid a rate increase by taking a safe driving course, but this isn’t universal, so check with your insurance company if you receive a ticket while driving. If you aren’t able to remove the ticket from your record, the points will stay on your record for at least a year, possibly more. Earning 12 points in a year can get your license suspended for up to 12 months.

Cheapest Car Insurance Companies in NM for Drivers With Bad Credit

While it may seem odd to some, your credit score can have a noticeable impact on your insurance rate. The impact your credit score can have on your premiums varies from company to company. The table below features estimates of what New Mexico drivers can expect to pay if they have poor credit.

The reason your credit score impacts your rate is that insurance companies see a higher credit rate as a sign you are more responsible and less likely to be in an accident and more likely to pay your premiums on time. This factor means that one of the ways to reduce your insurance premiums is to improve your credit score. According to Experian, the average credit score in New Mexico is 686, which is a healthy average.

Cheapest Car Insurance Companies in New Mexico for Seniors

Traditionally, as you get older your insurance rates drop. With senior citizens, however, rates can sometimes increase as your vision worsens and your reaction time slows. While this may seem unfair or arbitrary, drivers 65 and older made up 18% of all fatal traffic accidents in the country in 2017. That percentage is substantial enough for insurance companies to take into account when determining a person’s rate. The following estimates reflect what seniors in New Mexico may pay for their auto insurance.

As you can see from the chart, insurance rates vary from company to company for senior citizens. Many insurance companies offer discounts for seniors who take safe driving courses, reduce their annual mileage or drive vehicles with certain safety features, which means you may be able to avoid an increase or even decrease your rates with the right discount.

Cheapest Car Insurance for Students

For college students, if you're moving to the state for college, the New Mexico Motor Vehicle Division will let you keep your out-of-state insurance, as long as it meets the state's minimum liability requirements.

Rates for teen drivers can be unique. Not only are they rated based on a lack of driving experience, but everything from their GPA to where their parents live can impact the cost of their insurance. Since teens in New Mexico must hold a learner’s permit for a minimum of six months, you have some time to review potential rates with multiple companies, such as the rates listed in the chart below.

Premium Comparison by Student Type

Getting a quote for insurance before adding your teen to your policy is the best way to make sure you are getting cheap car insurance for young drivers in New Mexico.

PREMIUM COMPARISON FOR TWO ADULTS + 16-YEAR-OLD

Average premium for two 2014

Mustang GTs

$4,420

Average premium for two 2008

Town and Country Limiteds

$2,839

Annual benefits of minivans:$1,581 saved

This is 36% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$840 DECREASE

This is a savings of 24%.

Potential discounts for teens in New Mexico

Impact on annual premium with good student and defensive driving discounts:

$268 SAVED

New Mexico students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

Average premium for a 19-year-old male

$3,087 at home

$2,490 at school

$597 IN SAVINGS

Average premium for a 19-year-old female

$2,670 at home

$2,264 at school

$406 IN SAVINGS

Insurance Rate Information for Military Drivers and Veterans

New Mexico has tens of thousands of active-duty personnel and veterans. If you're stationed in New Mexico or live there while away on military duty, insurance companies offer discounts for military members and veterans. For the best price comparison, get at least three quotes from licensed insurance companies in New Mexico.

If you're from out of state serving in New Mexico, you can choose either to drive a vehicle legally registered in your home state, or change over registration to New Mexico, potentially saving money by registering online. Disabled veterans get a 50% reduction in the cost of their vehicle plates upon showing proof of insurance and disability status.

New Mexico also has a Heroes to Highways program that helps veterans transition from active duty to civilian jobs requiring a commercial driver's license. New Mexico also allows active military personnel to keep a valid license even after it expires for up to 31 days after they return from service. The following are estimates of what active-duty personnel and veterans can expect to pay for auto insurance in New Mexico.

Age savings for New Mexico service members

25 years$1,273
50 years$1,018

25 years$1,228
50 years$1,014

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$255 Saved

$214 Saved

Median auto insurance for service members: $998

Who Needs Car Insurance in New Mexico?

Everyone who drives in New Mexico must have car insurance. If you are not driving your vehicle — say, it's a classic Chevy that doesn't run, or it's in storage — you can file an Affidavit of Non-Use with the Motor Vehicles Division (MVD) every year. Your vehicle won't be insured, but you won't be penalized as long as you don't drive it.

Proof of Insurance in New Mexico

When you register your vehicle at the MVD you will have to show proof of insurance with one of the following:

• A current auto insurance card
• A copy of your current auto insurance policy
• A letter from your auto insurance company (on company letterhead) that verifies your auto insurance coverage.

New Mexico is now the only state that doesn't accept electronic proof of insurance on your smartphone, so carry your insurance card or a copy of your policy with you while driving.

Minimum Liability Insurance Requirements in New Mexico

New Mexico's minimum requirement for auto insurance coverage is:

• $25,000 for bodily injury to or death of one person
• $50,000 for bodily injury to or death of two or more persons
• $10,000 for property damage in any one accident

If you cancel or fail to renew your insurance policy, by law your insurer must notify the MVD. If you don’t want or cannot get insurance, you can choose to purchase a surety bond or make a cash deposit of $60,000 with the state Treasurer instead of purchasing car insurance. This money will be used to cover liability expenses if you cause a car accident.

High-Risk Auto Insurance Program in New Mexico

The New Mexico Motor Vehicle Insurance Plan was established to provide auto insurance to drivers who cannot get coverage through the private insurance market because they are deemed too high a risk. 

New Mexico is a member of the Western Association of Automobile Insurance Plans (WAAIP), which puts high-risk drivers in touch with an insurance company that can insure them. Insurance companies are required to insure high-risk drivers based on their market share, which means that a company that insures 12% of drivers in New Mexico is required to take 12% of all high-risk policies in the state.

Car Insurance Requirements in NM: How Much Coverage Do You Need?

Compare Auto Insurance Rates

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COMPARE QUOTES

Expert Advice on Finding Cheap Car Insurance in New Mexico

1. What are the key factors drivers in New Mexico should look for when searching for the best auto insurance coverage?

   Reilly White

   In New Mexico, our car insurance is neither particularly cheap nor particularly expensive. Many urban centers – particularly Albuquerque - have astronomical automotive theft rates. Albuquerque itself has the second (and in some years, first) highest of any metropolitan area in the United States. These incidents add to the cost of car insurance premiums in the city. Further adding to costs, New Mexico has the third-highest rate of uninsured motorists in the country, nearly double the average in the United States as a whole. This puts a greater burden on the consumer to maintain a high level of insurance coverage in the unfortunate event of an accident.

   Due to these factors, New Mexico residents should utilize multiple quotes to find their best insurance rates, and consider paying extra for more comprehensive coverage than required by law. Additional coverage (such as car rental coverage) is important, particularly if your car is vandalized, stolen, or undergoing repairs.

2. What steps can drivers in New Mexico take to find affordable car insurance?

   Reilly White

   For New Mexico drivers, this means doing much of the same things people are doing across the country: (1) shop around, you always have a choice; (2) know when to increase or decrease coverage; and (3) always ask for discounts that allow you to take advantage of the best deals.

   Shopping around is easy; a number of online providers allow you to estimate your car insurance coverage with the touch of a button. Likewise, you might want to increase coverage on newer vehicles you use frequently; with older cars (or ones that you don’t drive often) you be skimpy. Likewise, discounts are offered for everything from the number of miles you drive, your current living situation (domestic partners and married couples can get cheaper rates), and your location and commute.

3. How do regulations and rules in New Mexico impact insurance pricing and how consumers might shop for coverage?

   Reilly White

   New Mexico is one of 48 US states requiring mandatory insurance coverage (New Hampshire and Virginia do not). Minimum insurance coverage requirements are classified as 25/50/10: $25,000 for bodily injury/death for a single person; $50,000 for bodily injury/death for two or more people, and $10,000 for property damage in a single accident. In addition, drivers are required to provide proof of insurance when registering their vehicle with the state motor vehicle division. Apart from that, there is a lot of flexibility in how New Mexicans can get reliable car insurance. Always remember rule #1: shop around!

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Reilly WhiteAssociate Professor of Finance at the University of New MexicoREAD ANSWERS

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