State Farm is the cheapest home insurance option for most homeowners in New Mexico, with an average monthly savings of $374. Below is a summary of the most affordable providers in the state.
Cheapest Home Insurance in New Mexico
Updated: May 27, 2025
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Key Takeaways
State Farm offers the cheapest homeowners insurance in New Mexico if you own a new home or have bad credit.
Customers can find savings of up to 76% from the cheapest overall providers in New Mexico: State Farm, Auto-Owners and Allstate.
If you live in a high-fire-risk area, State Farm is the cheapest provider for home insurance in New Mexico.
What is the Cheapest Home Insurance in New Mexico?
| State Farm | $125 | $1,501 | 16% |
| Foremost Insurance | $173 | $2,071 | -16% |
*These rates are based on a house built in 2000 with a $1,000 deductible, $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and class 3 fire protection. The insured is assumed to have good credit and no claims in the past five years.
THE CHEAPEST COMPANY MAY NOT BE THE BEST FOR YOU
Price is important to consider for home insurance, however it's also useful to know about a company's customer service reputation and coverage options. To help, we've created a separate guide to the best home insurance companies in New Mexico, giving you more information to make the best decision for your situation.
Cheapest New Mexico Home Insurance Rates by Category
While we’ve listed the cheapest options for most homeowners, those rates may not reflect your specific situation. For instance, while State Farm is typically the cheapest overall, State Farm offers the best rates for newer homes. To help, we’ve outlined the cheapest companies on average for common categories.
| State Farm | Older Homes | $125 |
| State Farm | Newer Homes | $59 |
| State Farm | Homes in High Risk Fire Areas | $125 |
| State Farm | Bad Credit | $330 |
*Rates are modified based on our methodology’s base profile. Newer home estimates are based on a home built in 2023, high-risk fire estimates are for a policy with 8-class fire protection, and bad credit rates assume a poor credit score on the FICO scale.
Compare Personalized Cheap New Mexico Home Insurance
The companies listed above typically provide the best rates for their categories, but actual rates vary based on your unique profile. Use the filter below to get a personalized list of the cheapest providers for your situation.
Data filtered by:Results filtered by:
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Coverage Level:$250K Dwelling / $125K Personal Property / $200K Liability
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Deductible:1000
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Claims History:Claim free for 5+ years
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Credit Tier:Good
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Home Age:Older Homes
| State Farm | $125 | $1,501 |
| Foremost Insurance | $195 | $2,339 |
Cheapest New Mexico Home Insurance By City
Risk factors for insurers vary by location, making some providers more affordable than others. For example, State Farm is the cheapest in Albuquerque and Las Cruces. However, other cities might see different providers offering the best rates, highlighting the importance of shopping around.
| Albuquerque | State Farm | $129 |
| Las Cruces | State Farm | $127 |
*These rates are based on a house built in 2000 with a $1,000 deductible, $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and class 3 fire protection. The insured is assumed to have good credit and no claims in the past five years.
How To Find the Cheapest New Mexico Home Insurance for You
Finding affordable home insurance in New Mexico can be challenging, but you can significantly lower your costs with some effort. Below are our core recommendations to help you maximize savings on your policy.
- 1
Determine your coverage needs
Having your coverage limits in mind before buying can keep you from being oversold on coverage. Make sure you determine your home insurance coverage needs beforehand and understand the types of home insurance coverage to get what you need.
- 2
Research home insurance cost information
Study home insurance costs in New Mexico to understand competitive pricing in your area. Thoroughly discuss potential discounts because insurers generally don't volunteer these money-saving options.
- 4
Compare multiple companies apples to apples
Once you know your coverage levels and type, compare quotes from different companies for that coverage to get the best deal. We recommend gathering as many quotes as possible using different methods to get your best rate.
- 5
Use state-provided programs
If you have a high-risk profile and face coverage denials or unaffordable rates, New Mexico offers a state program through the New Mexico Property Insurance Program. This program provides coverage for those denied by traditional insurers, often at a lower cost than insurers willing to approve you.
Cheap Home Insurance New Mexico: Bottom Line
State Farm and Foremost Insurance are typically New Mexico's most affordable home insurance options. If you're denied coverage, the TFPA offers low-cost policies. Still, it's wise to compare multiple companies, research costs and understand your coverage needs before making a choice.
Cheapest Home Insurance New Mexico: FAQ
Below are answers to frequently asked questions about the cheapest home insurance in New Mexico:
What is the cheapest home insurance company in New Mexico?
State Farm offers the lowest rates for newer homes in New Mexico at $59 per month or $710 per year. However, homeowners with older properties or higher fire protection needs may find better rates with other providers.
How expensive is home insurance in New Mexico?
New Mexico has the 30th-highest home insurance rates in the U.S.
How much is home insurance in New Mexico?
Your home insurance needs should align with the replacement cost of your dwelling, the value of personal possessions, and potential local hazards. If you're a homeowner without a mortgage, insurance isn't mandatory, but it's wise to secure enough coverage for complete home replacement and comprehensive protection for assets and unique items.
How much home insurance do I need?
Your home insurance needs should align with the replacement cost of your dwelling, the value of personal possessions, and potential local hazards. If you're a homeowner without a mortgage, insurance isn't mandatory, but it's wise to secure enough coverage for complete home replacement and comprehensive protection for assets and unique items.
How We Found the Cheapest Home Insurance Companies in New Mexico
To determine the cheapest home insurance companies in New Mexico, we assumed the following base profile:
- $250K dwelling coverage
- $125K personal property coverage
- $200K liability coverage
- Home built in 2000
- Frame construction
- Composition roof
- $1,000 all perils deductible
- No claims in the past 5+ years
- 3-class fire protection
All other combinations were adjusted based on this profile to provide a more accurate comparison for your specific situation. However, these figures are estimates, and we recommend comparing quotes from multiple providers to secure the best deal.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.