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The Best Car Insurance in New Mexico

What’s the best auto insurance for you in the Land of Enchantment?

Best Car Insurance in New Mexico Overall
State Farm Logo

State Farm agents provide local service with the backing of a national organization, with many coverage options and discounts for drivers in New Mexico.

Best Car Insurance for Driving in Mexico
Liberty Mutual Logo

Travel to and from Mexico easily with a policy from Liberty Mutual.

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New Mexico is known as the Land of Enchantment because of its scenic beauty and rich history. You might also be enchanted by the cost of your auto insurance policy in New Mexico. The state average cost of car insurance is only $905 per year, which is 14 percent below the national average.

Keep in mind that auto insurance rates are based on many factors personal to your circumstances, like your ZIP code, which is why we researched the best auto insurance companies in New Mexico for different situations. The cheapest car insurance company for you may be different for your neighbor or someone with a speeding ticket in New Mexico, for example.

The Best Auto Insurance in New Mexico

  1. 1.

    Best Car Insurance in New Mexico Overall: State Farm

  2. 2.

    Best Car Insurance for Driving in Mexico: Liberty Mutual

  3. 3.

    Best Car Insurance in New Mexico for Teen Drivers: Allstate

  4. 4.

    Best Car Insurance in New Mexico for Active Military and Veterans: USAA

Comparison of the Best Auto Insurance in New Mexico

Provider What it’s best for J.D. Power customer satisfaction rating (out of 1,000) in the Southwest1 Discounts available Average annual cost of insurance Review
State Farm Overall 848 (ranked first in the region) Bundling, multi-car, safe driving, student, anti-theft, etc. $1,419 State Farm review
Liberty Mutual Driving in Mexico 815 Accident-free, low mileage, good student, military, multi-car, multi-policy, safe driving, teen drivers $1,637 Liberty Mutual review
Allstate Teen drivers 824 Multi-policy, new car, student, safe driving, paperless, paid-in-full, etc. $1,673 Allstate review
USAA Military and veterans Not ranked Safe driving, defensive driving, bundling, low mileage, vehicle storage, student, family, new car, autopay, etc. $1,8602 USAA review

Detailed List of the Best Auto Insurance in New Mexico

1. Best Car Insurance in New Mexico Overall - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

State Farm works with a vast network of exclusive agents catering to the specific needs of your city. Albuquerque, Espanola, Los Ranchos, Santa Fe, and Silver City are just a few of the cities in New Mexico with State Farm agents in residence. The company earned the highest score for customer satisfaction in the Southwest region, according to J.D. Power — just one of the reasons it’s our overall pick for best auto insurance in New Mexico.

ProsWho It's Best For
ConsWho It's Not Best For
  • con
    People with a poor driving record
  • con
    Military and federal employees

State Farm Discounts in New Mexico

Not every discount is available in every state. Here are the discounts available from State Farm for drivers in New Mexico:

  • Accident-free
  • Anti-theft device
  • Defensive driving course
  • Drive Safe & Save usage-based insurance
  • Good driving
  • Good student
  • Multiple automobiles
  • Multiple insurance policies
  • Passive restraint
  • Steer Clear training for young drivers
  • Student away at school
  • Vehicle safety

Local and Exclusive Agents

An agent is your advocate with your auto insurance provider. Ask yours how to lower the cost of auto insurance or achieve a fair insurance claim settlement after an accident.

Local agents who live in your area can be extremely beneficial because they understand the specific factors that affect auto insurance in your city and state. They can help you find the best cheap car insurance companies in New Mexico based on where you live. For example, you’ll pay a higher premium living in a city like Albuquerque than you would in suburban or rural areas in New Mexico. However, there are still ways to save, like the discounts above.

State Farm works with a large network of exclusive agents. The benefit of working with an exclusive agent is that they possess a depth of knowledge about State Farm policies and discounts. State Farm’s exclusive agents are one reason it ranks on our list of best provincial auto insurance providers for local service.

Complimentary Coverage

New Mexico requires liability coverage only. While you can drive with the legal minimum auto insurance, we recommend adding at least some of the following standard and optional coverage options State Farm offers:

  • Car rental coverage
  • Collision coverage
  • Comprehensive coverage
  • Emergency road service coverage
  • Gap coverage
  • Medical payments coverage
  • Repayment of deductible expense
  • Travel expenses
  • Umbrella coverage
  • Uninsured/underinsured motor vehicle coverage


New Mexico requires the following minimum auto liability insurance amounts:

  • $25,000 for bodily injury liability per person
  • $50,000 for bodily injury liability per accident
  • $10,000 for property damage liability per accident3
2. Best Car Insurance for Driving in Mexico - Liberty Mutual

What We Like Most:

  • Save up to 30 percent with driver monitoring program
  • Cheap average rates
  • Over 2,000 local agents throughout the U.S.

Liberty Mutual’s history goes back over a century, but it provides all the convenience of a modern, technology-forward auto insurance company. Liberty Mutual offers online tools and numerous coverage options that make it a great option for anyone in the U.S, but its coverage options in Mexico make it especially enticing for drivers in New Mexico who cross the border frequently.

ProsWho It's Best For
  • pro
  • pro
    Young drivers
  • pro
    People who travel to Mexico often
ConsWho It's Not Best For

Mobile and Online Tools

If you want the convenience of being able to do business with your auto insurance company from anywhere, Liberty Mutual is a great option. The company offers a comprehensive online platform to request quotes and sign up for a new policy. It even provides a discount if you purchase your policy online. Its mobile app allows you to do a variety of tasks, including:

  • Access ID cards
  • Pay and manage bills
  • File and track claims
  • Add drivers
  • Access and sign documents
  • Talk to Liberty via chat
  • Call roadside assistance

Mexico Car Insurance

If you drive over the border between the U.S. and Mexico frequently, whether for work or for pleasure, you need coverage from an authorized Mexico insurer. Liberty Mutual’s partner in Mexico, MexPro, offers customizable coverage options, as most U.S. auto insurance policies are invalid or very limited in Mexico. You can choose temporary coverage from a term of one day to one year with MexPro via Liberty Mutual.

Teacher Discounts

Good news for teachers in New Mexico! Liberty Mutual offers teachers these free benefits:

  • Vandalism loss protection: If your vehicle is vandalized on school property or during school-related events, your deductible will be $0.
  • Personal property coverage: If someone steals or damages your teaching materials or school-owned property, you will be covered for up to $2,500 per occurrence.
  • Collision coverage: If someone damages your vehicle in a collision while you’re driving it on school business, your deductible will be $0.
3. Best Car Insurance in New Mexico for Teen Drivers - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

Allstate agents operate as small businesses in your local communities. With over 35 agents in New Mexico and a wealth of online tools, Allstate is the best of both worlds when it comes to auto insurance companies.

You can access your auto insurance policy and claims online or on your phone, but you can also reach out to a local agent who has deep knowledge of your area and your policy. One of the reasons we put Allstate on this list is because the company excels at providing savings and safe driving tools for teen drivers.

ProsWho It's Best For
  • pro
    Teen drivers
  • pro
    Rideshare drivers
  • pro
    Safe drivers
ConsWho It's Not Best For

Avoiding Theft

New Mexico ranks third nationally in car theft, behind Colorado and Washington D.C.. The motor vehicle theft rate in New Mexico in 2020 is 428 per 100,000 inhabitants, which is 74 percent higher than the national average of 246.4 Allstate assists in the event of auto theft in a couple of ways:

  • Vehicle equipment discounts: Allstate offers a discount on your premium if your car has an anti-theft device, incentivizing you to protect your car from being stolen.
  • Comprehensive coverage: Like most auto insurance companies, Allstate offers comprehensive coverage to encompass damages from theft and vandalism, among other non-collision incidents.

Smart Student Discount for Teen Drivers

Teens get into accidents more often than other age groups due to their lack of driving experience. In fact, the average cost of auto insurance for teens is $3,751 per year, which is 258 percent higher than the national average. Allstate has a smart student discount you can apply to reduce the cost of insurance for any teenagers, college students, or students under the age of 25 listed on your policy.

Unmarried students under the age of 25 who meet the requirements receive a discount on their insurance policy. Eligibility requires one of the following:

  • An average grade of B- or a GPA of 2.7 or above
  • Successful completion of the teenSMART driver education program
  • Attendance at school at least 100 miles away from car storage


New Mexico is the only state that doesn’t explicitly allow digital proof of insurance, so you should have your physical insurance card when you’re driving to avoid a penalty.

4. Best Car Insurance in New Mexico for Active Military and Veterans - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

USAA works exclusively with U.S. Armed Forces service members, families, and veterans. If you’re an active-duty military member or veteran, USAA provides lower-than-average car insurance rates for flexible and specialized coverage options. While not ranked officially, the company has a consistently high customer satisfaction score from J.D. Power.

ProsWho It's Best For
  • pro
    Active-duty military members, veterans, and their families
  • pro
    Senior drivers over the age of 60
ConsWho It's Not Best For
  • con
    Non-USAA members
  • con
    Non-military members or families

Savings for Active-Duty Military Members

If you live in New Mexico but you’re deployed or storing your insured car for any other reason, USAA will give you up to 60 percent off your premium. Plus, USAA offers a usage-based discount, which means you’ll pay less if you live on base and don’t drive your car that much.

Additionally, USAA has a garaging discount, so parking your car in a garage on a military installation will reduce your comprehensive coverage premium by 15 percent if you live on a military base.

Other Ways to Save With USAA

USAA offers the following programs and discounts that apply to all drivers, military or not, on your policy:

  • USAA SafePilot: SafePilot is USAA’s optional safe driving program. It uses telematics to track your driving habits through your smartphone and save you up to 30 percent on your premium.
  • Safe driving: USAA’s safe driver discount kicks in after five years if you maintain a good driving record. You can also get a discount for completing an approved defensive driving or basic driver training course.
  • Multi-vehicle: This discount applies when you extend coverage to two or more vehicles.
  • Bundling: Adding auto insurance to your property insurance policy will save you up to 10 percent on your total premium.
  • Good student: If your student driver maintains good grades, you can get a discount on your car insurance premium.
  • New car: If your vehicle is less than three years old, USAA offers a discount on your auto insurance.
  • Anti-theft technology: If you have an anti-theft device installed, you’ll get a discount.

Insurance for Everywhere

If your home base is New Mexico but you’re stationed elsewhere, your USAA auto insurance will travel with you. USAA offers auto insurance in all 50 states; Washington, D.C.; U.S. territories; and select international locations including:

  • Azores
  • Belgium
  • Cuba
  • France
  • Germany
  • Greece
  • Guam
  • Italy
  • Netherlands
  • Portugal
  • South Korea
  • Spain
  • United Kingdom


We chose the best auto insurance providers in New Mexico based on state-specific factors and a three-pronged research methodology:

  • Company information: We thoroughly researched each company’s car insurance offerings, focusing on the required coverages in New Mexico, optional coverages that complement the required coverage, and discounts to reduce the burden of auto insurance costs. We took into account customer satisfaction ratings from J.D. Power in the Southwest region.
  • Proprietary data: We collect and analyze millions of data points about insurance providers, including customer success rates in New Mexico. Information about auto insurance options and demographic factors in New Mexico determines the providers we included on this list. We’ve performed this data analysis so you can compare focused policy options in one place.
  • Institutional knowledge: After more than 20 years of analyzing the auto insurance industry, we’ve amassed a wealth of knowledge about each insurance provider’s strengths and weaknesses. Paul Ford, the president of insurance at Centerfield,’s parent company, has spent nearly three decades working in the insurance industry, with tenures at Canadian Access, Inslogic, Capital One Insurance Services, NetQuote, Bankrate, and Datalot. We leverage Paul’s extensive knowledge of car insurance to help customers find the perfect policy.

Frequently Asked Questions

How necessary is uninsured motorist auto insurance in New Mexico?

Uninsured motorist and underinsured motorist coverage is not required in New Mexico; however, it is highly recommended because 22 percent of the state’s licensed drivers do not have insurance, according to the Insurance Research Council.

If an uninsured driver hits you and you don’t have uninsured motorist coverage, medical payments coverage, or collision coverage, you may not be able to recover money to pay for damages from the collision from your insurance. Instead, you may have to file a civil suit in order to recoup your losses, which will be costly and time-consuming.

Is New Mexico a no-fault state for car insurance?

No. New Mexico is an at-fault state, so the party at fault in an accident pays for the other party’s bodily injury and property damage costs. The state has pure comparative negligence laws, which means a jury can decide if one party is more responsible. This means if a jury decides you’re 80 percent responsible for an accident and the other party is 20 percent responsible, you will be required to pay 80 percent of the bodily injury and property damage costs.

Can I have out-of-state car insurance in New Mexico?

New Mexico accepts out-of-state insurance if it meets the state’s minimum coverage requirements. If you register your vehicle in New Mexico but live out of state, you must submit an Affidavit of Non-Use/Out-of-State Insurance to the New Mexico Insurance Identification Database at


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  4. 2019 Crime in the United States. FBI. (2023).