Progressive is overall the most affordable auto insurance in New Mexico. State Farm, Farmers and USAA are also a great option for some drivers.
Review MoneyGeek's breakdown of the best car insurance companies in New Mexico if you want quality service at an affordable price.
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Cheapest Minimum Liability Car Insurance in New Mexico (September 2023)
The following companies offer the cheapest car insurance in New Mexico for a policy with minimum coverage:
- Progressive: $311 per year
- State Farm: $353 per year
With an average annual premium of $842, 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.
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Cheapest Full Coverage Car Insurance in New Mexico (September 2023)
The following companies offer the cheapest full coverage car insurance policies in New Mexico:
- Progressive: $722 per year
- GEICO: $803 per year
The most expensive insurance provider in New Mexico is Allstate. It costs about $1,444 a year for full coverage.
Adding comprehensive and collision coverage to your auto insurance will increase the cost of your annual premium. GEICO's full coverage policy costs $384 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.
How to Compare Cheap New Mexico Car Insurance Quotes Online
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.
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See how the Average Annual Auto Insurance Rates vary with the options chosen.
Cheapest Car Insurance in New Mexico by Age (September 2023)
Age is one of the biggest factors affecting car insurance rates in New Mexico. MoneyGeek found that Nationwide and Progressive offers the cheapest options, depending on what age group you and your family belong to.
Cheapest Car Insurance in New Mexico for Teens and Their Families (September 2023)
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.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens. This rate difference is not as notable when drivers reach their 20s and beyond.
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.
Cheapest Car Insurance in New Mexico for Young Adults (September 2023)
MoneyGeek found that the following companies offer the cheapest car insurance in New Mexico for young adults:
- Progressive: $948 per year
- GEICO: $1,103 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. Progressive charges 25-year-old drivers $226 more per year than 40-year-old drivers.
Cheapest Car Insurance in New Mexico for Seniors (September 2023)
The following companies offer the cheapest car insurance to senior drivers in New Mexico:
- Progressive: $761 per year
- State Farm: $855 per year
Allstate has the highest car insurance rates for seniors, at roughly $1,462 per year.
In New Mexico, senior drivers pay slightly less for car insurance than middle-aged drivers. With Progressive, seniors can purchase a full coverage policy for $39 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.
Cheapest Car Insurance for Higher Risk Drivers (September 2023)
Nationwide offers the cheapest rates for drivers in New Mexico with tickets and at-fault accidents, while Progressive has the best price for drivers with 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.
Cheapest Car Insurance in New Mexico After a Ticket
The following companies offer the cheapest car insurance rates to drivers in New Mexico with speeding tickets:
- Progressive: $1,000 per year
- GEICO: $1,032 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 $199 more for your insurance if you get a speeding ticket in New Mexico.
Cheapest Car Insurance in New Mexico After an Accident
New Mexico drivers with at-fault accidents can find affordable full coverage car insurance from the following companies:
- State Farm: $1,129 per year
- Progressive: $1,215 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 $416 more for car insurance in New Mexico with an at-fault accident on your driving record.
Cheapest Car Insurance in New Mexico After a DUI
Individuals in New Mexico with DUI convictions may get the cheapest full coverage car insurance from the following companies:
- Progressive: $878 per year
- State Farm: $1,042 per year
In comparison, Iowa Farm Bureau has the most expensive annual premium for drivers with DUIs, at $1,956. With a DUI, you will have to pay an average of $514 more for car insurance in New Mexico.
Cheapest Car Insurance in New Mexico for Drivers With Poor Credit (September 2023)
New Mexico drivers with poor credit may find affordable car insurance with the following companies:
- Progressive: $1,087 per year
- GEICO: $1,244 per year
For people with poor credit scores, State Farm has the most expensive car insurance in New Mexico, costing about $2,050 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 $500 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.
Cheapest Car Insurance in New Mexico for Sports Cars (September 2023)
Sports car drivers in New Mexico can save money by choosing one of these insurance companies:
- Farmers: $916 per year
- GEICO: $992 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 $175 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.
Cheapest Car Insurance in New Mexico for Military Drivers (September 2023)
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.
- $511 per year
The most affordable option for military members in New Mexico is USAA. Military personnel can take advantage of military-specific discounts, such as discounts on comprehensive insurance for storing your vehicle on base. Other discounts, such as bundling, defensive driving and safe driving, can also help you save money.
Cheapest Car Insurance in New Mexico by City
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, Progressive offers the most affordable car insurance in Las Cruces at about $779 a year. Meanwhile, drivers in Albuquerque will pay an average of $1,056 per year with the same provider.
You can compare average auto insurance costs by city in New Mexico by using the list below.
Car Insurance in New Mexico: What You Need to Know
New Mexico law requires all drivers to carry bodily injury liability and property damage liability insurance. The majority of states require these coverages.
New Mexico Car Insurance Requirements
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.
Bodily Injury Liability
In New Mexico, drivers are required to carry a minimum of $25,000 per person and $50,000 per accident in bodily injury liability coverage. Any injuries that you cause to others will be covered, up to these amounts, with this coverage. Any additional costs beyond these limits will need to be paid out of pocket.
Property Damage Liability
New Mexico requires $10,000 in property damage liability per accident. This covers damages to other’s property if you’re found at fault in an accident.
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.
Car Insurance Alternatives in New Mexico
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.
FAQs About Car Insurance in New Mexico
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.
Expert Advice on Finding Cheap Car Insurance in New Mexico
To help you find credible and accurate insight into car insurance in New Mexico, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- What are the key factors drivers in New Mexico should look for when searching for the best auto insurance coverage?
- What steps can drivers in New Mexico take to find affordable car insurance?
- How do regulations and rules in New Mexico impact insurance pricing and how consumers might shop for coverage?
Associate Professor of Finance at the University of New Mexico
About Mark Fitzpatrick