The cheapest and best insurance providers in New Mexico based on driving background and demographics.
With a state-annual average cost of car insurance of $905, drivers in New Mexico can expect to pay nearly 15 percent less than the national average ($1,047). These averages become significantly lower if you only sign up for minimum liability ($560) and take advantage of all the discounts available to you.
It’s important to note that your rates will vary from provider to provider and city to city in New Mexico, depending on a number of factors. Below, we’ll cover everything you need to know about how to find the cheapest providers based on your demographics, financial history, and driving record.
Because insurance rates vary so drastically between providers, locations, and customers, we’ve aggregated the cheapest prices based on specific driving situations and personal background factors. Insurance providers look at the collective of your background and driving history when assessing rates, so the following rates may or may not necessarily apply to you.
For example, even if you have a good credit score, you might pay higher rates if you also have a history of traffic violations. Consider the collective process of how insurance providers generate rates when you’re trying to find the cheapest plan.
Auto insurance average rates by demographics tend to reflect the corresponding risk of certain drivers, and age is no exception. Teen drivers get into more car accidents than any other age group, so it’s no surprise that their prices are the highest on average. If you’re a teen driver, you can expect your rates to stay relatively high until your mid-twenties. After this, those costs will gradually decrease (assuming you maintain a safe driving record).
It makes sense that the more coverage you get, the higher your rates will be. We recommend increasing your limits to at least $500,000 and getting full coverage with uninsured motorist protection. However, if you can’t afford that level of coverage, you will have low-cost options for minimum liability that are among the most affordable in the country.
According to the most recent data from the National Association of Insurance Commissioners, the annual average expenditure for minimum liability is $631 nationwide and $560 in New Mexico.1 Both the national and statewide averages for minimum liability are more than double the cheapest available plan through State Farm.
Like most states, car insurance providers in New Mexico take your credit score into account when determining your premiums. The average credit score in New Mexico (699) is 15 points lower than the national average (714), so maintaining good credit can set you apart from other drivers and potentially bring your rates down.2
J.D. Power ranks the top car insurance providers in the Southwest based on their customer satisfaction ratings. Here are a few of the cheapest car insurance companies in New Mexico with the highest customer service scores in the Southwest.
It should be no surprise that people with poor driving records tend to pay higher-than-average rates for car insurance. Car insurance companies consider the following factors when they assess your driving history:
The more violations, accidents, and convictions you have on your record, the higher your rates will likely be.
If you’re one of the 14,300 active military members or 135,000 veterans in New Mexico, your best option for cheap car insurance is USAA.3 USAA’s membership is exclusive to active military members, veterans, and their families. With USAA, you and your family can enjoy some of the cheapest car insurance rates, the highest customer service scores, and the most comprehensive list of membership benefits, like discounts for car rentals and financial planning guidance.
Because married couples tend to be more financially stable and more risk-averse, insurance providers offer them cheaper rates than single drivers. On average, married American couples pay a little over $1,200 a year for car insurance, which is nearly 30 percent more than what married couples from New Mexico pay on average.
New Mexico has the 32nd-highest marriage rate in the country, with 5.9 marriages per 1,000 total population. However, it had the highest percentage increase in marriages between 2020 and 2021, nearly doubling from 3.4 to 5.9 marriages per 1,000 population.4
New Mexico is one of 43 states that allows car insurance providers to consider gender when determining insurance rates. Because on average, men are involved in more accidents, DUIs, and traffic violations than women, they tend to pay more for insurance. That national trend is consistent in New Mexico, if only by a few dollars.
Here are some of the top insurance providers based on their rates, discounts, customer service scores, and other factors.
There are several ways to save on car insurance in New Mexico, depending on your specific background and the provider you’re working with.
After a certain cap, you will start to see diminishing returns on increasing your deductible for lower premium prices. For example, you may find that increasing your deductible from $1,000 to $1,500 will save you only a few dollars on your premiums. Once you reach that cap, increasing your deductible any higher to earn lower premiums wouldn’t be worthwhile.
New Mexico’s car insurance minimum limits are not enough to protect you in severe accidents, especially if you’re at fault in the accident. Because New Mexico is an at-fault state, your insurance provider will be expected to cover the cost of property damages and injuries for both you and the other party involved in the accident.7 If those costs ever exceed your limits, you could face a lawsuit and have to pay for the damages out of pocket.
If you can afford it, we recommend increasing your liability coverage up to $500,000. We also recommend adding some optional coverage types that will keep you more protected while you’re on the road.
If you don’t want to go through a traditional car insurance provider to protect yourself and your vehicle, there are some alternative car insurance options you can refer to in New Mexico.
Every state has its own rules and guidelines for self-insurance eligibility. While most states require you to own a minimum number of vehicles and some amount of cash collateral, New Mexico’s self-insurance requirements are at the discretion of the superintendent of insurance. So, in order to self-insure your vehicle, you’ll have to meet the superintendent of insurance’s criteria, which they will determine on a case-by-case basis.
The cheapest auto insurance companies in New Mexico depend on your personal background, zip code, and unique driving history. However, State Farm, GEICO, USAA, and Central offer the cheapest auto insurance rates to drivers in New Mexico on average. Shop around, ask your agent about discounts, look out for auto insurance memberships such as AARP or USAA, and bundle your plans to get the cheapest rates, whether you want minimum or full coverage car insurance in New Mexico for 2023.
And for high-risk and young drivers in New Mexico, you can still get affordable, quality insurance with the right provider. Look for car insurance providers that specialize in high-risk auto insurance, like Dairyland, a great option for someone with a speeding ticket on their record. Want to learn more about how to find cheap auto insurance? Check out our guide for the best cheap auto insurance.
With rates as low as $831, State Farm offers the cheapest car insurance for sports cars in New Mexico.
If someone gets into an accident with an at-fault driver who has no insurance in New Mexico, the victim (i.e., the not-at-fault driver) would have to file the claim with their own insurance provider. If the victim in the accident doesn’t have uninsured motorist coverage, they could still file claims for collision or medical payments coverage, depending on the consequences of the accident.
Additionally, New Mexico’s pure comparative negligence law allows you to file a lawsuit against another driver if you can prove they were more at fault. So even if someone is driving uninsured, you can still seek injury compensation through the state’s legal system.
According to the New Mexico Motor Vehicle Division (MVD), a first-offense penalty for driving without insurance results in a fine of up to $300 and 90 days of jail time. Those amounts increase to $1,000 and six months of jail time for subsequent offenses, respectively.
According to the injury attorney firm Keller & Keller, auto insurance follows the car, not the driver. This is true for every part of a full coverage plan (liability, comprehensive, and collision).
2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).
Credit Scores Steady as Consumer Debt Balances Rise in 2022. Experian. (2023, Feb 24).
New Mexico. Military State Policy Source. (2022, Dec 31).
Marriage Rates by State. Center for Disease Control. (2021).
Licensed Total Young Drivers, by Age, 2019. Federal Highway Administration. (2022, Feb).
Highway Statistics Series: State Statistical Abstracts. U.S. Department of Transportation. (2023).
Car Accident Lawyers. Keller & Keller. (2023).
One in Eight Drivers Uninsured: $13 Billion Spent in 2016 to Protect Against Uninsured and Underinsured Drivers. Insurance Research Council. (2021, Mar 22).
An Act – Section 1. Section 66-1-4.3 NMSA 1978. LEGISLATURE OF THE STATE OF NEW MEXICO. (1998, Jul 1).