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Cheapest Car Insurance Companies and Quotes in New Mexico

To help drivers make the difficult decision of choosing the most affordable car insurance, MoneyGeek ranked the companies offering the cheapest annual rates based on comprehensive and collision coverage for the average driver. However, these prices are dependent on many factors and may vary. You should compare car insurance quotes from various providers, as these numbers may increase or decrease based on your personal information and specific needs.

Average Comprehensive and Collision Rates in New Mexico

Car insurance rates vary considerably depending on the driver’s age, vehicle type, driving record and credit history. Each driver is unique and insurance companies evaluate these criteria differently. The rates above are only averages for the typical driver.

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Cheapest Liability Car Insurance in New Mexico

Some drivers choose liability-only car insurance. This coverage insures you for the cost of third-party medical expenses and property damage if you cause an accident. Liability coverage does not cover your own medical or vehicle costs, so if you are still making payments on your car, it may be better to opt for comprehensive and collision coverage.

Most states set a minimum liability requirement. Insurance companies also provide higher coverage levels to protect you in case of an accident. In New Mexico, GEICO provides the most affordable coverage for most drivers, whether they opt for the state minimum of 25/50/25 or select a slightly higher option with 50/100/50 coverage.

Average Cost for Liability Coverage

The Best Car Insurance Companies in New Mexico for 2021

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.

Expand All Rankings +

1

USAAScore: 100
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

2

State FarmScore: 90
+

5/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A++

Financial Stability

3

GEICOScore: 90
+

3/5

User Satisfaction

3/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

4

AllstateScore: 82.5
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

5

CSAAScore: 82.5
+

3/5

User Satisfaction

2/5

Claims Ratings

5/5

Affordability

A

Financial Stability

6

Liberty MutualScore: 82.5
+

3/5

User Satisfaction

4/5

Claims Ratings

3/5

Affordability

A

Financial Stability

7

American FamilyScore: 80
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A

Financial Stability

8

TravelersScore: 80
+

2/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A++

Financial Stability

9

SafecoScore: 77.5
+

3/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A

Financial Stability

10

FarmersScore: 77.5
+

3/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A

Financial Stability

While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.

Market Share by Company

According to the National Association of Insurance Commissioners, State Farm and 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.

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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

Cheapest Car Insurance for Drivers With a DUI in New Mexico

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

Average Car Insurance Rates With a DUI

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 With Tickets in New Mexico

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.

Average Car Insurance Rates With a Ticket

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 New Mexico 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.

Average Car Insurance Rates for Drivers With Bad 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, 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 following estimates reflect what seniors in New Mexico may pay for their auto insurance.

Average Car Insurance Rates for Seniors

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 in New Mexico

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 below.

Average Car Insurance Rates for Students

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

male
25 years$1,273
50 years$1,018
female
25 years$1,228
50 years$1,014

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.

Car insurance companies use your location to calculate your rate.
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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.

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

    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?

    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?

    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!


Reilly White
Reilly WhiteAssociate Professor of Finance at the University of New Mexico

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About the Author


expert-profile

Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour and Cracked. She has also worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her Life, Health, and AD&D license in New York and the surrounding states.


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