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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.

Company
Amount
1. GEICO
In 2020 GEICO ranked #1 in New Mexico for the cheapest car insurance on average.
$1,126
per year
2. State Farm
In 2020 State Farm ranked #2 in New Mexico for the cheapest car insurance on average.
$1,132
per year
3. Farmers Ins Co Of AZ 2.0
In 2020 Farmers Ins Co Of AZ 2.0 ranked #3 in New Mexico for the cheapest car insurance on average.
$1,877
per year
4. Progressive
In 2020 Progressive ranked #4 in New Mexico for the cheapest car insurance on average.
$2,019
per year
5. Allstate
In 2020 Allstate ranked #5 in New Mexico for the cheapest car insurance on average.
$2,154
per year
6. Progressive
In 2020 Progressive ranked #6 in New Mexico for the cheapest car insurance on average.
$2,385
per year

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.

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


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.

Company
Market Share
1. State Farm
19.18%
2. GEICO
15.67%
3. Progressive
13.47%
4. Farmers
10.19%
5. USAA
9.36%
6. Allstate
6.91%
7. Liberty Mutual
4.49%
8. Hartford
2.60%
9. Sentry
2.54%
10. AAA
2.39%

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.

Company
Amount
1. State Farm
In 2020 State Farm ranked #1 in New Mexico for the cheapest car insurance for dui.
$1,103
per year
2. Progressive
In 2020 Progressive ranked #2 in New Mexico for the cheapest car insurance for dui.
$2,162
per year
3. Farmers Ins Co Of AZ 2.0
In 2020 Farmers Ins Co Of AZ 2.0 ranked #3 in New Mexico for the cheapest car insurance for dui.
$2,731
per year
4. Allstate
In 2020 Allstate ranked #4 in New Mexico for the cheapest car insurance for dui.
$2,882
per year
5. Progressive
In 2020 Progressive ranked #5 in New Mexico for the cheapest car insurance for dui.
$3,290
per year
6. GEICO
In 2020 GEICO ranked #6 in New Mexico for the cheapest car insurance for dui.
$3,850
per year

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.

Company
Amount
1. State Farm
In 2020 State Farm ranked #1 in New Mexico for the cheapest car insurance for distracted drivers.
$1,184
per year
2. GEICO
In 2020 GEICO ranked #2 in New Mexico for the cheapest car insurance for distracted drivers.
$1,193
per year
3. Farmers Ins Co Of AZ 2.0
In 2020 Farmers Ins Co Of AZ 2.0 ranked #3 in New Mexico for the cheapest car insurance for distracted drivers.
$2,217
per year
4. Allstate
In 2020 Allstate ranked #4 in New Mexico for the cheapest car insurance for distracted drivers.
$2,313
per year
5. Progressive
In 2020 Progressive ranked #5 in New Mexico for the cheapest car insurance for distracted drivers.
$2,561
per year
6. Progressive
In 2020 Progressive ranked #6 in New Mexico for the cheapest car insurance for distracted drivers.
$3,682
per year

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.

Company
Amount
1. State Farm
In 2020 State Farm ranked #1 in New Mexico for the cheapest car insurance for poor credit history drivers.
$1,116
per year
2. GEICO
In 2020 GEICO ranked #2 in New Mexico for the cheapest car insurance for poor credit history drivers.
$1,161
per year
3. Farmers Ins Co Of AZ 2.0
In 2020 Farmers Ins Co Of AZ 2.0 ranked #3 in New Mexico for the cheapest car insurance for poor credit history drivers.
$1,901
per year
4. Progressive
In 2020 Progressive ranked #4 in New Mexico for the cheapest car insurance for poor credit history drivers.
$2,061
per year
5. Allstate
In 2020 Allstate ranked #5 in New Mexico for the cheapest car insurance for poor credit history drivers.
$2,196
per year
6. Progressive
In 2020 Progressive ranked #6 in New Mexico for the cheapest car insurance for poor credit history drivers.
$2,463
per year

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.

Company
Amount
1. State Farm
In 2020 State Farm ranked #1 in New Mexico for the cheapest car insurance for seniors.
$1,168
per year
2. GEICO
In 2020 GEICO ranked #2 in New Mexico for the cheapest car insurance for seniors.
$1,422
per year
3. Farmers Ins Co Of AZ 2.0
In 2020 Farmers Ins Co Of AZ 2.0 ranked #3 in New Mexico for the cheapest car insurance for seniors.
$2,079
per year
4. Allstate
In 2020 Allstate ranked #4 in New Mexico for the cheapest car insurance for seniors.
$2,494
per year
5. Progressive
In 2020 Progressive ranked #5 in New Mexico for the cheapest car insurance for seniors.
$2,514
per year
6. Progressive
In 2020 Progressive ranked #6 in New Mexico for the cheapest car insurance for seniors.
$3,063
per year

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

New Mexixo Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$1,993 INCREASE

This is a difference of 147%.

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.

Company
Amount
1. Farmers Ins Co Of AZ 2.0
In 2020 Farmers Ins Co Of AZ 2.0 ranked #1 in New Mexico for the cheapest car insurance for students.
$2,468
per year
2. State Farm
In 2020 State Farm ranked #2 in New Mexico for the cheapest car insurance for students.
$3,223
per year
3. Progressive
In 2020 Progressive ranked #3 in New Mexico for the cheapest car insurance for students.
$3,840
per year
4. GEICO
In 2020 GEICO ranked #4 in New Mexico for the cheapest car insurance for students.
$4,178
per year
5. Progressive
In 2020 Progressive ranked #5 in New Mexico for the cheapest car insurance for students.
$4,403
per year
6. Allstate
In 2020 Allstate ranked #6 in New Mexico for the cheapest car insurance for students.
$5,038
per year


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

car
Average premium for two 2014

Mustang GTs

$4,420
car
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:

coins
$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.

male
Average premium for a 19-year-old male
car

$3,087 at home

graduation

$2,490 at school

$597 IN SAVINGS

female
Average premium for a 19-year-old female
car

$2,670 at home

graduation

$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

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

$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?

What percentage of drivers in New Mexico lack vehicle insurance?

20.8%

National average: 13%

Source:

Insurance Information Institute.

If you own property or have other investments and you are at fault in 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 injured 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 in case you are hit by an uninsured driver.


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Sources