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Last updated: June 26, 2023

Cheapest Car Insurance in New Mexico

The cheapest and best insurance providers in New Mexico based on driving background and demographics.

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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.

The Cheapest Car Insurance in New Mexico

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).

  • 16: Central, $3,146
  • 17: USAA, $2362
  • 18: USAA, $1,988
  • 19: Allstate, $2,233
  • 20s: Nationwide, $1,063
  • 30s: Central, $1,006
  • 40s: Central, $927
  • 50s: Central, $903
  • 60s: Central, $936
  • 70s: Central, $1,043


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.

  • Full coverage: State Farm, $644
  • Minimum coverage: State Farm, $254


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

  • Excellent credit: USAA, $647
  • Good credit: USAA, $859
  • Bad credit: GEICO, $1,666

Customer Service Score

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.

  • 856 J.D. Power score: USAA, $511
  • 848 J.D. Power score: State Farm, $644
  • 827 J.D. Power score: GEICO, $752
  • 824 J.D. Power score: Allstate, $990
  • 819 J.D. Power score: Farmers, $1,306

Driving Record

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:

  • Accidents on your driving record
  • Claims history
  • Driver’s license points
  • Moving violations
  • Serious charges like DUIs or hit-and-runs
  • Traffic-related violations (driving without insurance or a license)

The more violations, accidents, and convictions you have on your record, the higher your rates will likely be.

  • Good driving record: GEICO, $1,065
  • Bad driving record: State Farm, $1,788

Active Military

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.

  • Active military personnel: USAA, $511
  • Veterans: USAA, $511

Marital Status

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.

  • Married: State Farm, $900


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.

  • Male drivers: Farmers, $479
  • Female drivers: Farmers, $476

The Best Car Insurance in New Mexico

Here are some of the top insurance providers based on their rates, discounts, customer service scores, and other factors.

  • Allstate
  • Central
  • Farm Bureau
  • Farmers
  • Liberty Mutual
  • Nationwide
  • Progressive
  • State Farm
  • USAA

Ways to Lower the Cost of Car Insurance

There are several ways to save on car insurance in New Mexico, depending on your specific background and the provider you’re working with.

  1. Compare car insurance quotes and shop around: Never agree to the first offer an insurance provider writes up for you. Most car insurance providers will secure your quote for 30 days, which gives you plenty of time to look around, compare deals, and find the best offer in your area. Car insurance rates differ drastically from person to person and from provider to provider, so take your time in getting as many quotes as possible before you decide on an offer.
  2. Bundle policies: Policy bundling is a discount that most providers offer, and it’s one of the easiest ways to earn big savings on car insurance (and other insurance policy types). For example, Nationwide has several ways to bundle motorcycles and vehicles, while Allstate’s home/auto bundling discount is one of the largest in the country at up to 25 percent off. Speak to your agent about what bundling discounts are available to you.
  3. Get age-related discounts: If you’re one of the 54,000 drivers under the age of 20 or 300,000 drivers over the age of 65 in New Mexico, look for age-specific discounts to save on car insurance.5 Some providers, like State Farm and Direct Auto, offer defensive driving courses to seniors and teens specifically. Additionally, companies like the AARP (The Hartford) have several perks and discounts that are exclusive to older Americans.
  4. Track your driving habits: Most providers offer some kind of driving tracking program, like Allstate’s Milewise or USAA’s SafePilot program. Driving tracking programs help providers determine your insurance rates based on how much you drive or how safely you drive every month. If you’re a safe driver or drive less than 8,000 miles a year (the average miles driven per year in New Mexico is around 11,000), you can earn some considerable savings with a driving tracking program.6
  5. Lower your limits: We recommend increasing your car insurance limits as high as you can afford, but you can always decrease your liability insurance limits if you find yourself struggling to keep up with your overall monthly costs. Per New Mexico’s minimum insurance requirements, you can go as low as $25,000 bodily injury liability per person and $50,000 per accident, and $10,000 of property damage liability per accident. Just keep in mind that you may have to pay out of pocket for the other party’s (if you’re at fault) damages or injuries that go over those limits.
  6. Raise your deductible: You can expect your monthly premiums to decrease with higher deductibles. Of course, there’s always a risk of increasing your deductibles because you’ll have to pay the higher amount if you file a claim. But if you’re a safe driver and don’t have a history of claims, this could be a good option to keep your monthly costs low. In any case, make sure that you select a deductible amount that you can afford if you have to pay it in full tomorrow. You don’t want to be in a position where you need to borrow money to cover the cost of an accident or emergency situation.


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.

How Much Coverage Do You Need?

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.

  • Collision coverage: Property damage liability coverage will help you pay for damages that you’ve caused to another person’s car or property, but it doesn’t contribute to damages that your vehicle/property incur. That’s where collision insurance comes in. Collision coverage will pay for your vehicle’s damages in an accident, regardless of who is at fault.
  • Comprehension coverage: With comprehensive coverage, your provider will help pay for events that aren’t collisions. Covered claims include events like car vandalism, auto theft, weather damages (hail, hurricanes, etc.), debris-related glass damages, and roadkill.
  • Uninsured/underinsured motorist coverage: If you get into an accident with a motorist who doesn’t have any insurance, or doesn’t have enough insurance to cover a claim, they may not be able to reimburse you for the property damages or medical costs out of pocket. With uninsured motorist coverage, your provider will cover your damages and ensure you get the repairs you need in a timely manner. Your uninsured motorist limit should match your liability limit. New Mexico has the fourth-highest rate of uninsured drivers in the country (22 percent), so you should definitely add uninsured motorist coverage if you can afford to.8

Alternative Car Insurance

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.

Self Insurance

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.

New Mexico Motor Vehicle Division Contact Information

  • URL:
  • Mailing address:
    • New Mexico Motor Vehicle Division
    • Joseph Montoya Building
    • P.O. Box 1028
    • Santa Fe, NM 87504-1028
  • Phone number: 888-683-4636 (Monday through Friday, 8 a.m. to 4:30 p.m. MT)
  • Email:


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.

Frequently Asked Questions

Which provider offers the cheapest car insurance for sports cars in New Mexico?

With rates as low as $831, State Farm offers the cheapest car insurance for sports cars in New Mexico.

What happens if the person at fault in an accident has no insurance 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.

What is the penalty for driving without insurance in New Mexico?

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.

Does car insurance follow the driver or the car in New Mexico?

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).


  1. 2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).

  2. Credit Scores Steady as Consumer Debt Balances Rise in 2022. Experian. (2023, Feb 24).

  3. New Mexico. Military State Policy Source. (2022, Dec 31).

  4. Marriage Rates by State. Center for Disease Control. (2021).

  5. Licensed Total Young Drivers, by Age, 2019. Federal Highway Administration. (2022, Feb).

  6. Highway Statistics Series: State Statistical Abstracts. U.S. Department of Transportation. (2023).

  7. Car Accident Lawyers. Keller & Keller. (2023).

  8. One in Eight Drivers Uninsured: $13 Billion Spent in 2016 to Protect Against Uninsured and Underinsured Drivers. Insurance Research Council. (2021, Mar 22).

  9. An Act – Section 1. Section 66-1-4.3 NMSA 1978. LEGISLATURE OF THE STATE OF NEW MEXICO. (1998, Jul 1).