Cheap New Mexico Low-Income Car Insurance for Families and Individuals

The state of New Mexico does not have a program to help low-income drivers get affordable insurance. MoneyGeek’s study found that Metlife is the state’s most affordable car insurance company for low-income individuals and families.

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Last Updated: 4/19/2022
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Insurance companies can’t use your income to determine your car insurance rates. The most influential factors that determine the price of insurance premiums in New Mexico are the level of coverage you select and if you have a teen driver on your policy. MoneyGeek analyzed New Mexico’s cheapest car insurance for low-income individuals and families, calculating rates for drivers with poor and good credit scores.

Is There Car Insurance for Low-Income Families and Individuals in New Mexico?

New Mexico lacks a government program to assist low-income individuals and families with the cost of car insurance. Research shows that approximately 21.8% of New Mexico drivers are uninsured. Some of them may not be buying car insurance because it’s too expensive.

Generally, minimum coverage policies are the most affordable traditional car insurance in the market. Low-income individuals in New Mexico can also consider pay-per-mile car insurance if they don’t drive often.

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Does New Mexico Have a Government Program to Support Low-Income Drivers with Insurance?

Like many states across the country, New Mexico doesn’t have a government car insurance program to help low-income drivers afford car insurance.

Your best option in finding affordable car insurance is to compare quotes from several car insurance companies. To help you shop around and look for the best deals, MoneyGeek analyzed the cheapest car insurance companies in New Mexico for low-income individuals.

The Cheapest New Mexico Car Insurance Companies for Low-Income Drivers

Insurers in New Mexico can’t factor your income to compute your car insurance rates. However, they can consider other factors, such as your age and credit score, which can affect the cost of your insurance premiums.

Your cheapest option for car insurance if you’re a low-income individual in New Mexico is minimum coverage insurance.

MoneyGeek’s analysis reveals that car insurance policies from Metlife are the state’s cheapest for adults, students and seniors, while Progressive offers the most affordable policies for low-income families. Insurers in New Mexico can’t factor your income to compute your car insurance rates. However, they can consider other factors, such as your age and credit score, which can affect the cost of your insurance premiums.

Your cheapest option for car insurance if you’re a low-income individual in New Mexico is the minimum coverage policy.

MoneyGeek’s analysis reveals that car insurance policies from Metlife are the state’s cheapest for adults, students and seniors, while Progressive offers the most affordable policies for low-income families. In the next sections, we break down the most affordable minimum coverage policies for low-income individuals and families of different ages.

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The Cheapest New Mexico Car Insurance Companies for Low-Income Families

Your income doesn’t affect your car insurance prices, but your credit score does.

If you’re a single parent in New Mexico, your car insurance can be $1,369 higher per year if you have a poor credit score instead of a good one. Likewise, if you’re a couple with a child and a bad credit score, you’ll pay $1,993 more per year for car insurance than your counterparts with a good credit score.

MoneyGeek found that in New Mexico, single parents with bad credit scores should look at the following companies for the most affordable car insurance:

  • Metlife: $2,335 per year
  • State Farm: $2,692 per year

Similarly, the cheapest providers in New Mexico for couples with a child and poor credit ratings are:

  • Progressive: $3,417 per year
  • Metlife: $3,521 per year

If you have a low income, that doesn’t necessarily mean you have a poor credit score. You can toggle the table below to search for the cheapest offers for your profile.

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  • Company
    Annual Rates
  • MetLife
    $1,348
  • State Farm
    $1,554
  • GEICO
    $1,777
  • Progressive
    $1,878
  • Allstate
    $1,947
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The Cheapest New Mexico Car Insurance Companies for Low-Income Individuals

The price of car insurance for an average 40-year-old driver in New Mexico is $446 higher per year if they have a poor credit score compared to a similar driver with a good credit score.

If you’re a low-income individual with a poor credit score, the cheapest car insurance providers in New Mexico are:

  • Metlife: $787 per year
  • State Farm: $905 per year

A low income doesn’t automatically result in a poor credit score. Folks with good credit scores can purchase a Metlife policy for around $454 per year and a State Farm policy for approximately $522 per year.

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  • Company
    Annual Rates
  • MetLife
    $454
  • State Farm
    $522
  • Progressive
    $596
  • GEICO
    $626
  • Allstate
    $632

The Cheapest New Mexico Car Insurance Companies for Low-Income Students

Insurance companies charge young drivers more since younger drivers tend to have less driving experience. As such, car insurance rates for college students in New Mexico are higher not because of their low income. Still, their car insurance premiums consume a significant portion of their income.

MoneyGeek’s research found that the cheapest car insurance companies in New Mexico for low-income students with poor credit scores are:

  • Metlife: $1,784 per year
  • State Farm: $2,052 per year

Having a low income doesn’t always translate to having a poor credit score. In New Mexico, the average cost of car insurance from Metlife is $1,029 per year, and State Farm is $1,184 per year for young drivers with good credit scores.

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  • Company
    Annual Rates
  • MetLife
    $1,029
  • State Farm
    $1,184
  • Progressive
    $1,351
  • GEICO
    $1,418
  • Allstate
    $1,431

The Cheapest New Mexico Car Insurance Companies for Low-Income Seniors

Generally, seniors pay a slightly higher car insurance rate than middle-aged drivers. Aside from their age, a senior’s credit score impacts the price of their insurance premiums. An average 70-year-old driver in New Mexico with a poor credit score pays $501 higher per year compared to a similar driver with a good credit score.

MoneyGeek’s research shows that low-income seniors with poor credit scores can look at the following New Mexico insurers for the most affordable car insurance:

  • Metlife: $829 per year
  • State Farm: $898 per year

Not all low-income seniors have a poor credit score, of course. In New Mexico, seniors with a good credit score can purchase a car insurance policy from Metlife for roughly $479 per year and from State Farm for about $518 per year.

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Good Credit Score

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  • Company
    Annual Rates
  • MetLife
    $479
  • State Farm
    $518
  • Progressive
    $661
  • Allstate
    $700
  • GEICO
    $768

Does Income Affect Car Insurance Rates in New Mexico?

Insurers in New Mexico can’t use your income as a factor to determine your car insurance rates. However, income-related factors can affect the price of your insurance premiums.

For example, if you’re a college student, insurance companies will consider you riskier to insure due to your lack of experience on the road. At the same time, you may have a low income since you’re still studying. However, you’re charged a higher price for car insurance because of your driving inexperience and not because of your low income.

MoneyGeek evaluated factors related to income and how they affect car insurance rates in New Mexico. Our study reveals that the following have the most effect:

  • Your age.
  • The coverage level you select.
  • Adding a teen driver to your policy.

When pricing their policies, car insurance providers also look at other factors, including credit score and car model.

  • Factor
    How it Affects Your Rates
  • Adding a Teen Driver

    Adding a teen driver is the biggest factor in New Mexico, increasing rates by 3x.

  • Age of Driver

    In New Mexico, your age is an important factor that can make car insurance 2.3x pricier.

  • Coverage Levels

    The amount of coverage you buy greatly affects your premium in New Mexico, making rates 2.6x more expensive.

  • Car Model

    Your car model can make your insurance twice as expensive in New Mexico.

  • Credit Score

    In New Mexico, having a poor credit score can make your rates 2.1x higher compared to drivers with good scores.

Frequently Asked Questions About Low-Income Car Insurance in New Mexico

MoneyGeek answers some frequently asked questions to help low-income individuals in New Mexico find cheap car insurance.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in New Mexico using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple each 40 years old or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in New Mexico.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.