The Best and Cheapest Renters Insurance in New Mexico for 2021: Rankings, Reviews and Rates
Buying renters insurance in New Mexico is a smart investment, as it safeguards your assets from theft and unexpected damage at a low rate. MoneyGeek’s data indicates that the cheapest renters insurance in New Mexico costs just $8 per month on average.
For those who consider both cost and quality, MoneyGeek rated the top renters insurance firms across New Mexico to help find the best coverage at an affordable rate. Our scoring system analyzed the affordability, customer support quality and financial strength of providers in the state to help you make the right choice.
Cost is one of the main factors considered by most buyers while making their renters insurance purchase. In New Mexico, State Farm is the most affordable renters insurance company, with a price of $94 per year on average.
These prices are for a policy with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500. The rates are based on quotes from multiple ZIP codes across New Mexico.
Personal Property Coverage:
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Best Renters Insurance Companies in New Mexico
Financial strength is another factor to consider while buying renters insurance in New Mexico. The provider should give you peace of mind that they will pay claims accurately and efficiently.
MoneyGeek found the best renters insurance firms in New Mexico by analyzing providers’ affordability, customer service scores from J.D. Power and financial stability ratings from AM Best. The research indicates that State Farm is the best renters insurance company in New Mexico, with a score of 95 out of 100.
More About State Farm
Apart from standard coverage, State Farm offers add-on protection for jewelry, earthquake damage, waterbeds, computers, additional liability coverage, identity restoration, incidental business liability and additional business property.
A notable feature is there is no limit on personal property coverage. State Farm also offers resources such as a mobile app and customer portal to help its policyholders.
More About USAA
USAA stands out in the market because its standard policy includes flood and earthquake coverage. You can opt to exclude personal property or personal liability coverage from your plan. Policyholders can get benefits like car rental discounts and travel deals.
For your expensive items and personal property, you can buy extra coverage from USAA.
Largest Renters Insurance Companies in New Mexico
State Farm has the largest market share among insurance companies in New Mexico with 20%, followed by Farmers with 17% and USAA with 11%. These three providers account for 48% of the renters insurance market in the state. It’s smart to buy a policy from an established provider, as they are more likely to have the financial strength to run stable operations and pay the appropriate amount for your claim.
Farm Bureau Mutual (IA Group)
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Average Cost of Renters Insurance in New Mexico
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Renters insurance in New Mexico is relatively cheap compared to the national average. In this state, the average annual rate is $94, which is $65 less than the U.S. average. These premiums are for a standard package that presents personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500. Comparing renters insurance quotes is an ideal way to save money as you can select the cheapest carrier for your needs.
What Factors Impact Renters Insurance Cost in New Mexico
Your renters insurance premium in New Mexico depends on several factors, including the following key considerations:
Deductible: Renters insurance providers include a deductible in their policies as a fee to process customer claims. Your monthly premium will be lower if the deductible is high, as you will have higher out-of-pocket payments.
Coverage amount: If you buy add-on coverage, you will pay a higher rate for your policy.
Location: Your ZIP code is important because if your residential area has frequent crime or inclement weather events, you will pay more for your renters insurance premium.
Credit Score: A good credit score can get you a discount on your premium. Those with poor credit scores typically pay higher rates, as providers consider them more likely to make claims.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): Your provider will reimburse you after an accident by considering either the actual cash value or replacement cost value of your items. ACV plans consider the depreciation of property over time and will pay less to replace used items. RCV packages will compensate you by providing sufficient funds to replace your damaged or lost items with new items of comparable quality. If you wish to save money, you can opt for an ACV policy, but your reimbursement will be less than that offered by an RCV plan.
Renters Insurance in New Mexico: What You Need to Know
You can get sufficient renters insurance in New Mexico to protect your valuable assets from unexpected catastrophes for a relatively low cost.
30.6% of New Mexico residents are renters, and the state’s average monthly rental price is $847. For a standard package with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible, the average monthly premium is $8, or less than 1% of the typical price of rent in the state.
What Renters Insurance Typically Covers in New Mexico
You should understand what your renters insurance policy in New Mexico covers and excludes. Basic coverage includes medical payments, liability insurance, additional living expenses and personal property.
In New Mexico, personal property insurance will cover many of the damages caused by natural disasters such as tornadoes, thunderstorms, wildfires and others.
What Renters Insurance Typically Does Not Cover in New Mexico
Renters insurance in New Mexico is useful because it covers many emergencies. However, standard coverage typically excludes the following issues:
Structural damage: Damage to the building's structure is excluded from renters insurance. Your landlord will need to purchase insurance coverage for structural damage.
Flooding: Only certain water damage is covered, not including flooding. If you live in an area prone to flooding, you can purchase coverage through the National Flood Insurance Program (NFIP).
Other exclusions: Renters insurance does not cover roommates’ belongings, earthquake damage or damage to your jewelry, car or similar expensive items that exceed policy limits.
It’s ideal to read your policy carefully, as not all packages are the same. This can help you understand your coverage and make a successful claim.
FAQs About Renters Insurance in New Mexico
No, renters insurance is not mandated by state law.
Though it’s not legally compulsory, it’s smart to get renters insurance, as you can get compensation for your property in case of damage due to covered events.
Property management companies and landlords can make renters insurance a requirement of signing a lease.
MoneyGeek’s studies show that the average price of an insurance policy for $20,000 in personal property coverage and $100,000 of liability coverage is $8 per month.
State Farm is the most affordable carrier in the state, with an average premium of $94 per year.
Renters Insurance in New Mexico Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from two of the top insurance companies in New Mexico provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across New Mexico. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
About the Author
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