The Cheapest Car Insurance in New Mexico (April 2023)

State Farm offers the cheapest minimum and full coverage auto insurance in New Mexico. It is also the most affordable option for young adults, seniors, sports car drivers and those with traffic violations. Drivers with poor credit will get the best rates from Nationwide.

Review MoneyGeek's breakdown of the best car insurance companies in New Mexico if you want quality service at an affordable price.

The following companies offer the cheapest car insurance in New Mexico for a policy with minimum coverage:

• State Farm: $254 per year
• Nationwide: $332 per year

With an average annual premium of $800, Allstate offers the most expensive minimum coverage premium in New Mexico.

Auto insurance in New Mexico must include at least bodily injury liability and property damage liability coverage.

A minimum coverage policy only covers damages or injuries you cause to others. With a full coverage policy, damages to your own car will be covered through comprehensive and collision insurance.

The following companies offer the cheapest full coverage car insurance policies in New Mexico:

• State Farm: $644 per year
• GEICO: $794 per year

The most expensive insurance provider in New Mexico is Kemper. It costs about $1,442 a year for full coverage.

Adding comprehensive and collision coverage to your auto insurance will increase the cost of your annual premium. State Farm's full coverage policy costs $390 more than its minimum coverage policy.

However, this additional upfront cost comes with superior protection. A full coverage policy will cover your car for both on-road and off-road accidents, including collisions or thefts.

How much coverage you need will affect your insurance rate. MoneyGeek obtained rates for a full coverage policy that includes the following coverages and limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident

Reducing your liability limits, dropping comprehensive and collision coverage or raising your deductible may lower your insurance rate. However, you may pay more out of pocket if you get into an accident.

Insurers typically offer online quotes, but it can take up to 15 minutes to input their required personal information. If you’re trying to compare and obtain quotes from multiple insurers, this time can add up.

MoneyGeek’s car insurance calculator is a no-hassle way to quickly estimate your auto insurance rate. It can also help you compare quotes from several companies to find the most competitive price.

In New Mexico, teen drivers added to their family’s policy will receive the cheapest rates from the following companies:

• Nationwide: $1,916 per year for male teens and $1,768 for female teens
• Allstate: $1,927 per year for male teens and $1,741 for female teens

Kemper is the most costly option for male and female teens at an average of $4,987 and $4,659 per year, respectively.

Car insurance rates between 16- and 19-year-old drivers are significantly different because as teenagers age, their rates become cheaper. In New Mexico, 19-year-old males can find the most reasonable quote from Allstate ($1,620).

In New Mexico, a parent who adds a teenager to their policy can save $3,057 compared with purchasing an individual policy.

Families can save money on their car insurance by taking advantage of discounts for young drivers. Insurance companies, such as State Farm and Nationwide, offer good student and distant student discounts.

MoneyGeek found that the following companies offer the cheapest car insurance in New Mexico for young adults:

• State Farm: $854 per year
• Nationwide: $1,063 per year

Kemper offers the highest rates for 25-year-old drivers, with an average annual premium cost of $1,644.

Drivers in their 20s typically pay more for auto insurance than middle-aged drivers. State Farm charges 25-year-old drivers $210 more per year than 40-year-old drivers.

The following companies offer the cheapest car insurance to senior drivers in New Mexico:

• State Farm: $608 per year
• Nationwide: $762 per year

Kemper has the highest car insurance rates for seniors, at roughly $1,422 per year.

In New Mexico, senior drivers pay slightly less for car insurance than middle-aged drivers. With State Farm, seniors can purchase a full coverage policy for $36 less than those in their 40s. Car insurance rates are higher, however, for seniors in their 70s and 80s.

Several insurers offer discounts to seniors on their car insurance premiums. Seniors can also save money by comparing insurers’ rates and coverage options.

State Farm offers the cheapest rates for drivers in Mexico with tickets, at-fault accidents or DUIs on their record.

Traffic violations will increase your car insurance rate. However, you can lower your insurance rate over time by taking state-approved courses and driving safely.

The following companies offer the cheapest car insurance rates to drivers in New Mexico with speeding tickets:

• State Farm: $741 per year
• Nationwide: $1,006 per year

It costs $1,719 per year to purchase auto insurance from Kemper, the most expensive provider in the state. You can expect to pay $202 more for your insurance if you get a speeding ticket in New Mexico.

New Mexico drivers with at-fault accidents can find affordable full coverage car insurance from the following companies:

• State Farm: $802 per year
• Nationwide: $1,303 per year

Kemper is the most expensive auto insurance company in New Mexico for drivers with at-fault accidents at approximately $1,830 annually. On average, you’ll pay $419 more for car insurance in New Mexico with an at-fault accident on your driving record.

Individuals in New Mexico with DUI convictions may get the cheapest full coverage car insurance from the following companies:

• State Farm: $741 per year
• Progressive: $1,177 per year

In comparison, Iowa Farm Bureau has the most expensive annual premium for drivers with DUIs, at $2,294. With a DUI, you will have to pay an average of $502 more for car insurance in New Mexico.

New Mexico drivers with poor credit may find affordable car insurance with the following companies:

• Nationwide: $1,159 per year
• GEICO: $1,230 per year

For people with poor credit scores, Iowa Farm Bureau has the most expensive car insurance in New Mexico, costing about $2,033 annually.

Insurers take your credit score into account when calculating your car insurance rate. If you have a poor credit score, 580 or below, you’ll pay $470 more for car insurance than those with good credit scores, 750 and above.

Some insurance companies charge higher rates to drivers with bad credit, since they believe they’re more likely to file a claim. Though this practice is illegal in some states, New Mexico allows it.

To receive a lower rate, you should improve your credit score. While improving your score, you can take advantage of commonly offered discounts, like those for bundling or car safety features.

Sports car drivers in New Mexico can save money by choosing one of these insurance companies:

• State Farm: $832 per year
• Farmers: $913 per year

With an annual premium of $1,900, Kemper has the most full coverage insurance policy for sports cars.

In New Mexico, it costs an average of $138 more to insure a Mustang than a Toyota Camry.

MoneyGeek obtained car insurance quotes using a Ford Mustang as our sample sports car. Rates may vary significantly depending on the car model.

In general, it costs more to insure sports cars, electric cars and luxury vehicles; however, the car model may not play a significant role in cost depending on the state you live in.

In New Mexico, USAA offers the best car insurance rates for active military members and veterans, with an average rate of $511 per year. Customers with direct military connections can access this company in all states.

The cost of car insurance in New Mexico varies based on several factors, including location. Insurance claims and premiums tend to be higher in neighborhoods where theft, vandalism and accidents are more prevalent.

In New Mexico, State Farm offers the most affordable car insurance in Las Cruces at about $832 a year. Meanwhile, drivers in Albuquerque will pay an average of $1,076 per year with the same provider.

You can compare average auto insurance costs by city in New Mexico by using the list below.

New Mexico law requires all drivers to carry bodily injury liability and property damage liability insurance. The majority of states require these coverages.

As per New Mexico law, drivers must carry the minimum amount of bodily injury liability and property damage coverage. Though this type of policy is affordable, you may have to pay more out of pocket if you get into an accident.

For full protection, Moneygeek recommends purchasing the most liability coverage you can afford. Although drivers with DUI convictions in New Mexico aren’t required to have SR-22 insurance, you may be required to obtain SR-22 insurance if the DUI offense was obtained in a different state.

Though minimum coverage is less expensive, we strongly suggest that you obtain bodily injury liability limits of $100,000 per person and $300,000 per accident, as well as property damage liability limits of $100,000. This will provide adequate coverage in the event of an accident.

If you have financed a car, you may also need comprehensive and collision insurance. This insurance will provide coverage in case of a collision, an off-road incident, vandalism or vehicle theft.

Driving a valuable car might also require full coverage insurance, even if it is not legally required.

Insurers may be reluctant to insure high-risk drivers. As an alternative to car insurance, high-risk drivers with adequate finances can obtain surety bonds or cash deposits of $60,000 from the state treasurer.

The New Mexico Motor Vehicle Insurance Plan is designed to help provide insurance coverage to high-risk drivers. As a member of Western Association of Automobile Insurance Plans or WAAIP, New Mexico is also able to connect these drivers with insurance companies.

When it comes to auto insurance, many people worry about quality and cost. Find out more about New Mexico auto insurance by reading our frequently asked questions.