Temporary Car Insurance in New Mexico: The Cheapest Options and What You Need to Know

In New Mexico, you can’t purchase a car insurance policy that lasts for a few weeks or months. Typically, the shortest policy length major insurers offer is six months. MoneyGeek found several ways to get temporary car insurance in New Mexico regardless of if you own or don’t own a car.

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Last Updated: 1/27/2022
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One way to create temporary insurance in New Mexico is to purchase a policy and cancel it before six months elapses. Canceling a policy early makes you eligible for a refund. A three-month car insurance policy in New Mexico costs around $283.

Rental car insurance is your best option if you’re visiting New Mexico or don’t have a car but need to drive.

MoneyGeek also explored other situations where temporary car insurance is necessary, such as purchasing non-owner car insurance to get your driver’s license reinstated or working for a rideshare company.

Can You Get Temporary Car Insurance in New Mexico

There are several ways to get temporary car insurance, but it may have varying meanings in different states. For example, if you have a car, you’ll typically want to purchase a traditional car insurance policy and then cancel it early. In comparison, drivers who don’t own vehicles could be better off getting non-owner car insurance. Another option is to purchase rental car insurance.

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HOW TO FIND TEMPORARY CAR INSURANCE IN NEW MEXICO TO FIT YOUR NEEDS

There’s no one way to secure temporary car insurance in New Mexico. MoneyGeek identified various methods to secure short-term car insurance based on your unique situation.

Buying a Six-Month New Mexico Insurance Policy and Canceling It Early

In New Mexico and other states, major car insurance companies only sell policies with a minimum length of six months. In New Mexico, you pay $566 on average for a six-month policy.

It’s possible to get shorter coverage by canceling your car insurance policy before your six months are up. Typically, insurers will refund your premium for the remainder of your term. A 90-day policy costs half as much as a six-month policy at roughly $283.

If you use this strategy, MoneyGeek advises against any lapse in insurance coverage. This may result in higher premiums later on.

Cheap Temporary Car Insurance in New Mexico

MoneyGeek computed the cost of temporary car insurance in New Mexico for a standard six-month policy. We also looked at the rates for 90-day and 30-day policies.

We compared quotes from insurers and found that, on average, the companies with the most affordable car insurance in New Mexico for a 90-day policy are:

  • MetLife: $227 per 90 days
  • State Farm: $261 per 90 days

MoneyGeek’s calculations do not consider cancellation fees. Generally, insurers won’t charge you cancellation fees and will reimburse you for the unused period in your term.

Annual Cost of Car Insurance in New Mexico by Policy Length

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Altering New Mexico Car Insurance Temporarily Depending on Your Needs

If you already have car insurance in New Mexico and your driving circumstances change, you can look at adjusting your policy by adding or removing certain coverages. Most drivers have questions about short-term car insurance when they have teenagers going off to college, someone borrowing their car or keeping their car in temporary storage.

When You Should Alter Your Policy Temporarily

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If your child attends school elsewhere in New Mexico, you can temporarily remove them from your policy or ask your insurer for a discount.

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If you’re temporarily storing your car, you can choose to keep comprehensive insurance on your policy and remove the rest of the coverages. Or, if you have a military background, utilize storage discounts from USAA.

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If you have someone who drives your car regularly, it’s a good idea to add them to your policy.

Cheap Temporary Car Insurance for Students in New Mexico

If your child lives with you in New Mexico, adding them to your policy is required. However, this can be costly. Based on MoneyGeek’s analysis, your average yearly car insurance cost may increase by $2,811 when you add an 18-year-old to your policy.

You save money by temporarily taking your student off your policy during the months they are at school more than 100 miles away, applying distant student discounts or keeping them on your policy.

Adding an 18-year-old to your policy for only two months during the summer costs an average of $469. In comparison, adding a student for an entire year makes your rate approximately $2,811 higher.

Allied gives you the most savings in New Mexico for taking a student off your policy temporarily.

Annual Cost of Adding an 18-Year-Old to Car Insurance in New Mexico

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  • Company
    Adding 18-year-old for two out of 12 months
    Adding an 18-year-old for the full year
    Difference
  • $1,664
    $277
    -$1,387
  • $2,311
    $385
    -$1,926
  • $2,602
    $434
    -$2,169
  • $3,729
    $622
    -$3,108
  • Allied
    $3,783
    $630
    -$3,152
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WHAT IF I CAN’T GET A DISCOUNT?

If your child studies in New Mexico but isn’t far enough to qualify you for a distant student discount, your next best option is to compare quotes from multiple insurers. Shopping around can help you purchase affordable car insurance for teens.

What to Do About Car Insurance if You’re Storing Your Car in New Mexico

If you’re temporarily storing your car in New Mexico, you can save money by dropping all your coverages except for comprehensive or look for a vehicle storage discount.

Switching to comprehensive-only coverage saves you money on premiums since you no longer pay for liability coverage. You'll spend $376 per year on average for a policy with comprehensive and collision insurance and a $1,000 deductible. In comparison, insurance that includes liability coverage has an average annual premium of $897.

What to Do If You Let Someone Else Drive Your Car

If another person in your household drives your car, it’s best to include them in your policy. However, if you give someone outside your home permission to drive your vehicle, you don’t need to make adjustments to your insurance. Your policy automatically covers them if they get into an accident.

Buying Rental Car Insurance in New Mexico

A standard car insurance policy isn’t necessary if you’re temporarily renting a car in New Mexico since you can get coverage from the rental company. Most rental companies offer basic liability coverage, but you can add other coverages such as collision damage waivers, supplemental liability and personal accident insurance. Depending on which company you choose, a policy with all these protections costs an average of $41 to $55 per day. You can mix and match coverages to get the best deal.

Finding Cheap Rental Car Insurance in New Mexico

MoneyGeek gathered data in New Mexico from Albuquerque and found that rental car insurance costs $41 to $55 per day on average depending on the company. These policies include supplemental liability, collision damage waiver and personal accident insurance. You can purchase a policy with these coverages at an average of $41 from Enterprise, $54 from Hertz and $55 from Avis per day.

You may not need every coverage offered by a rental insurance policy. If you have an existing policy, your current coverage already provides some protection. Additionally, most credit card providers also have collision damage waiver coverage for rental cars. This can help you save money.

Cost per Day of Rental Car Insurance in New Mexico

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  • Rental Company
    Total Insurance Cost
    Supplemental Liability Cost
    Collision Damage Waiver Cost
    Personal Accident Insurance Cost
  • Enterprise
    $41
    $13
    $23
    $6
  • Avis
    $55
    $14
    $31
    $10
  • Hertz
    $54
    $13
    $34
    $7

Buying Non-Owner Car Insurance in New Mexico

If you don’t own a car but temporarily need proof of insurance, a non-owner car insurance policy is a good option. It can also help you secure an SR-22 if you need to get your driver’s license reinstated. You can purchase non-owner car insurance in New Mexico for $521 per year on average.

Non-owner car insurance is your most affordable option in New Mexico if you don’t own a car but drive regularly.

How to Get Temporary Rideshare Car Insurance for Rideshare in New Mexico

If you work for a rideshare company, you’re only protected when you’re matched with or transporting a rider. Rideshare drivers have a temporary gap in coverage when they haven’t accepted a fare or started transporting a passenger. Purchasing rideshare insurance helps you avoid that. Unfortunately, rideshare insurance isn’t available in all states.

MoneyGeek compared various companies offering the best rideshare insurance to help you find the most affordable options.

Frequently Asked Questions About Temporary Car Insurance in New Mexico

Temporary car insurance carries different meanings in various states, which can confuse buyers. Here are the most commonly asked questions about temporary car insurance in New Mexico.

Methodology

To complete this analysis, MoneyGeek gathered car insurance and non-owner policy rates across New Mexico. We acquired these in collaboration with Quadrant Information Services. These were based on the profile of a 40-year-old driver carrying a full coverage policy, which our methodology page defines. Rates for a student driver represent the average cost of including an 18-year-old in an existing policy.

MoneyGeek calculated premiums for one-month and three-month policies on a prorated basis and assumed the insurer would issue a full refund. We manually collected rental car insurance costs by using the online tools of Avis, Enterprise and Hertz.

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.