MoneyGeek’s ranking of the top car insurance companies in New Mexico rates insurers based on pricing, customer satisfaction and company reliability, among other factors. You should get multiple quotes from different insurers, as rates may vary depending on your specific scenario and background. MoneyGeek's rankings reveal a potential savings of $533 when comparing car insurance premiums from top-rated companies in New Mexico.
The Best Cheap Car Insurance in New Mexico for 2021
The Cheapest and Best Car Insurance in New Mexico
In New Mexico, minimum liability coverage is the cheapest car insurance policy, but it only meets the state’s requirements, providing no additional coverage. This insurance covers you for the costs of property damage and medical treatment incurred by others in an at-fault accident, but not your own vehicle or medical expenses.
The least expensive car insurance companies in New Mexico for minimum coverage are:
- MetLife: $441 per year
- State Farm: $507 per year
The costliest car insurance company in New Mexico for minimum coverage is Allied, with an average annual premium of $745.
Average Cost for Minimun Liability Coverage
Please keep in mind these prices are only averages and should serve as a guide for comparing insurers’ rates.
These prices are only estimates based on rates for an average New Mexico driver and should not be used to compare insurance prices.
A minimum coverage policy in New Mexico is the cheapest available but only covers bodily injury and property damage liability insurance. Consumers looking to cover damages to their own car, or improve their protection against higher liability costs, should consider a full coverage policy.
It’s ideal to compare car insurance quotes from several providers so you can find the most affordable prices. A full coverage policy with comprehensive and collision insurance and higher liability limits can protect against most road accidents and off-road incidents in New Mexico. It will cost more than minimum coverage, but it safeguards against the cost of damages to your car, not just others.
The most affordable car insurance providers of full coverage in New Mexico are:
- MetLife: $910 per year
- State Farm: $1,044 per year
Meanwhile, Allied offers the most expensive full coverage package in this state, with average costs of $1,443 per year.
Average Comprehensive and Collision Rates in New Mexico
Please remember that your individual premiums will be different than these examples. Prices are for a policy with comprehensive and collision insurance, along with $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident.
The Best Car Insurance Companies in New Mexico for 2021
According to MoneyGeek’s research, the best car insurance companies in New Mexico for most drivers are:
- Best Overall: State Farm
- Runner-up: GEICO
USAA received the highest score in New Mexico by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
MoneyGeek uses a unique rating system to rank the best car insurance companies in New Mexico. The scoring system includes two industry standards for insurance ratings and review: AM Best and J.D. Power. These agencies provide data on an insurance company’s financial reliability and customer satisfaction reputation.
After assessing data from these agencies and integrating unique pricing data, MoneyGeek assigned each company a score out of 100 that represents affordability, reliability and customer satisfaction.
USAA only serves veterans, current military members and their families. This provider ranks the best in MoneyGeek’s list of New Mexico car insurance firms, as it scores the maximum marks on all considered criteria.
USAA is one of the best and most affordable insurers in most states in the U.S., including New Mexico. This provider offers a discount to active military personnel who garage their vehicles on base. If your parents are also USAA customers, you can qualify for a loyalty discount.Read MoneyGeek's USAA auto Insurance Review
State Farm is the next-best auto insurance carrier in New Mexico. It stands out with an impressive score for customer satisfaction and also gets high marks for affordability, claims processing and support.
State Farm presents an extensive agent network that provides a personal touch to consumers when they get a quote. You can use its Drive Safe & Save app to get savings based on your driving behavior. Young drivers should consider State Farm, as good student discounts can last until they’re 25 years old.Read MoneyGeek's State Farm auto Insurance Review
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
List of the Largest Insurance Companies in New Mexico
Based on market share, the three biggest insurers in New Mexico are State Farm (19.2%), GEICO (15.7%) and Progressive (13.5%). Please note that market share is the number of policies sold by one insurance company divided by the total number of policies sold in the state.
A large insurance company is more likely to be financially stable and can process and reimburse claims without difficulty. Though it may not be the ideal provider for every driver, it assures more security to the average consumer.
- CompanyMarket Share
How to Compare Cheap New Mexico Car Insurance Quotes Online
Most car insurance providers offer a convenient and reasonably accurate online quote tool. You should ideally use the same consistent coverage amounts when comparing quotes. For example, if you get a quote with one carrier for comprehensive and collision insurance with a $500 deductible, you should make sure to use the same deductible when comparing quotes with another insurer.
Input your ZIP code below to compare rates, or use MoneyGeek’s pricing information as a guide to select insurance company websites to shop on. MetLife, State Farm and Progressive are the three cheapest car insurance providers in New Mexico, and you can start by getting premiums from these firms.
What Is the Average Cost of Car Insurance in New Mexico?
Insurance companies base their premiums on several factors that vary from one driver to another. To help you analyze the average costs of car insurance, MoneyGeek assembled a list of rates depending on demographics, driving history and more.
MoneyGeek defines the average driver as a 40-year-old male driving a Toyota Camry with a clean driving record. Notice how the rates fluctuate based on various factors.
- Average Driver: $1,133
- DUI: $2,125
- Speeding Ticket: $1,352
- Poor Credit Score: $1,941
- Seniors: $1,212
- Students: $3,142
New Mexico drivers with a severe driving violation, such as a DUI, pose greater risks for insurers and pay higher rates as a result. The average cost of car insurance in New Mexico for drivers with a DUI is $2,125 per year, compared to $1,133 for the average driver with a clean record.
The cheapest car insurance firms in New Mexico for a driver with a DUI and full coverage are:
- State Farm: $1,121 per year
- Progressive: $1,329 per year
Although MetLife is the cheapest full coverage insurer for New Mexico drivers with a clean record, State Farm, Progressive, Allstate and Farmers all have lower rates for those with a DUI.
Average Car Insurance Rates With a DUI
1,085 people in New Mexico died from 2009-2018 in alcohol-related car accidents. 1% of drivers in New Mexico admit to getting behind the wheel after drinking too much within the last 30 days.
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 above 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.
Drivers with even a minor driving violation in New Mexico, such as a ticket, will tend to pay higher rates for insurance. In this state, a driver with a speeding ticket on their record needs to shell out $1,352 per year on average for auto insurance coverage, compared to $1,133 for the average driver.
The least expensive insurers in New Mexico for a driver with a speeding ticket and full coverage are:
- State Farm: $1,121 per year
- MetLife: $1,181 per year
These two companies also offer the cheapest full coverage packages for drivers with a clean record.
Average Car Insurance Rates With a Ticket
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 above 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.
New Mexico drivers with poor credit scores pay higher rates than those with good credit scores. The average cost of auto insurance for drivers with poor credit in New Mexico is $1,941 per year, $808 less than the typical driver pays.
The most affordable car insurance carriers in New Mexico for a driver with poor credit and full coverage are:
- Allstate: $1,358 per year
- Progressive: $1,549 per year
While MetLife is the cheapest provider of full coverage insurance for the average driver with good credit, Allstate’s costs are lower for those with bad credit.
Average Car Insurance Rates 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 above 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.
Senior drivers in New Mexico typically pay slightly more than young adults and middle-aged drivers. In this state, a senior driver needs to pay an average of $1,212 per year for their car insurance, compared to $1,133 for the average 40-year-old driver.
The cheapest auto insurance companies in New Mexico for senior drivers with full coverage are:
- MetLife: $864 per year
- State Farm: $1,016 per year
These two providers also offer the cheapest full coverage options for the average non-senior driver.
Average Car Insurance Rates for Seniors
Traditionally, your insurance rates drop as you get older. 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 15% of all fatal traffic accidents in New Mexico in 2017. That percentage is substantial enough for insurance companies to take into account when determining a person’s rate. The above 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.
Student drivers in New Mexico tend to pay far more than the average adult driver because of their inexperience. $3,142 is the annual average cost of car insurance for student drivers in New Mexico, which is nearly three times more than the typical driver pays.
The least expensive insurers in New Mexico for student drivers with full coverage are:
- Progressive: $1,942 per year
- State Farm: $2,620 per year
MetLife is the cheapest provider of full coverage insurance for the average driver, but Progressive’s premiums are lower for student drivers.
Average Car Insurance Rates for Students
The state's Graduated Driver License program slowly introduces teenage drivers to safe driving. While your teen is driving with a permit, there likely won’t be a charge, but once they have their license, they will need to be added to your policy. Adding a teen to your insurance can be expensive, but you can help keep their premiums as low as possible by taking advantage of a good student discount if they have a B average or higher.
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 above.
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.
Insurance Rate Information for Military Drivers and Veterans
New Mexico is home to many 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.
Average Rates for New Mexico service members
Car Insurance in New Mexico: What You Need to Know
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 have insurance, but you won't face penalties 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 one person
- $50,000 for bodily injury per accident
- $10,000 for property damage
If you cancel or fail to renew your insurance policy, your insurer must notify the MVD. If you don’t want or cannot get insurance, you can purchase a surety bond or make a cash deposit of $60,000 with the state treasurer instead of purchasing car insurance. This money will cover liability expenses if you cause a car accident.
High-Risk Auto Insurance Program in New Mexico
The state established the New Mexico Motor Vehicle Insurance Plan to provide auto insurance to drivers who cannot get coverage through the private insurance market because they are 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 must cover 12% of all high-risk drivers in the state.
How Much Coverage Do You Need in New Mexico?
If you own property or have other investments and you cause an accident, it is possible to lose everything in court to pay for the damages you caused. Having enough insurance to pay for damages is an important part of protecting your assets.
Most insurance professionals and consumer groups recommend carrying minimum bodily liability insurance of $100,000 per person and $300,000 per accident. If you have a new car, you will likely want collision or comprehensive insurance. If you have a loan on the car, your lender will probably require it. Because New Mexico has many uninsured motorists, you may also want to consider purchasing uninsured motorist insurance, which will cover you if an uninsured driver hits your car.
Average Insurance Rate by City in New Mexico
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FAQs About Car Insurance in New Mexico
Here are replies to some frequently asked queries about auto insurance coverage and prices in New Mexico to help you make an educated choice.
Expert Advice on Finding Cheap Car Insurance in New Mexico
To help you find trustworthy and accurate details on car insurance in New Mexico, MoneyGeek received expert advice from established professionals. The views and sentiments shared 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 the Author
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- National Association of Insurance Commissioners. "2018 Market Share Reports." Accessed March 7, 2020.
- National Highway Traffic Safety Administration. "Fatality Analysis Reporting System." Accessed March 7, 2020.
- National Highway Traffic Safety Administration. "Traffic Safety Facts." Accessed March 7, 2020.
- Motor Vehicle Department of New Mexico. "Insurance." Accessed March 7, 2020.
- Motor Vehicle Department of New Mexico. "Military." Accessed March 7, 2020.
- Rocky Mountain Insurance Information Association. "New Mexico Graduated Driver Licensing." Accessed March 7, 2020.