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Last updated: June 6, 2023

Average Cost of Car Insurance in New Mexico

How much you’ll pay for auto insurance in the Land of Enchantment

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Drivers in New Mexico enjoy cheaper rates than individuals in other states, as New Mexico rates are 15 percent lower than the national average. The exact amount you pay depends on a number of factors, including your ZIP code and whether you get minimum or full coverage car insurance. The average costs of full coverage are the highest, but the costs of full coverage depend on car insurance companies. Keep reading for average auto insurance rates in New Mexico.

Average Car Insurance Rates in New Mexico

On average, car insurance in New Mexico costs $1,295 per year, or $108 per month. How much you pay will depend on factors like your age, credit score, and even your marital status.

We’ve broken down average prices by category and by company. That way, you can get a sense of how much you should expect to pay for auto insurance, as well as which providers offer the cheapest car insurance in New Mexico.

By Age

Due to their inexperience and proclivity to engage in unsafe driving behaviors like distracted driving, teens pay more for auto insurance than any other age group. On average, teen drivers in New Mexico pay $4,183 annually for auto insurance, or $348 monthly.


Often, families with teens can save by adding teens to an existing policy rather than buying them a separate policy.

Age Average annual cost of car insurance
16 $4,577
17 $4,744
18 $4,286
19 $3,127
20s $2,098
30s $1,410
40s $1,329
50s $1,281
60s $1,338
70s $1,579

By Gender

In general, men pay more for auto insurance than women, and New Mexico is no exception. On average, men in New Mexico pay $118 more than women annually, or about $10 more monthly.

Gender Average annual cost of car insurance
Male $1,876
Female $1,758


Despite making up half of the population, men account for 72 percent of motor vehicle deaths, meaning they are about one-and-a-half times more likely to die in a crash than women.1

By Marital Status

Like in many other states, married drivers in New Mexico pay slightly less for auto insurance than drivers who are single, divorced, or widowed. The savings on New Mexico car insurance amounts to about $100 each year, although it varies with auto insurance companies.

Marital status Average annual cost of car insurance
Single $1,317
Married $1,209
Divorced $1,317
Widowed $1,300

By Coverage Level

The less coverage you purchase, the lower your monthly costs will be. In New Mexico, minimum coverage costs just $475 annually, or about $40 each month. However, keep in mind that while purchasing minimum coverage might save you money in the short term, it can mean large out-of-pocket expenses if you get into an accident.

Coverage level Average annual cost of car insurance
Minimum $475
Full $1,362

By Credit Score

Unfortunately, in most states, insurance companies are allowed to take your credit score into account when determining premiums, including in New Mexico. People with a low credit score tend to file more claims, meaning insurance companies consider them a risk and charge more for insurance.

Credit score Average annual cost of car insurance
Poor $2,298
Average $1,661
Good $1,464
Excellent $1,192

By Violation

Speeding tickets, DUIs, and at-fault accidents aren’t only costly in the immediate aftermath; they also raise your premiums for months and even years afterward.

Driving history Average annual cost of car insurance
Clean driving record $1,362
Speeding ticket $1,813
Accident $2,003
DUI $2,260

By Company

The price of auto insurance varies by company, which is why it’s helpful to compare quotes from at least three companies before buying a policy. In New Mexico, State Farm and Allstate offer some of the cheapest rates, with annual costs of $1,044 and $1,071, respectively, for full coverage.

Company Average annual cost of car insurance
Allied $1,443
Allstate $1,071
GEICO $1,224
Progressive $1,085
State Farm $1,044

Cheapest Car Insurance in New Mexico

If you’re looking for cheap auto insurance in New Mexico, these companies have the lowest rates.

Demographic Cheapest company Annual rate
Full coverage Farmers $910
Minimum coverage Central Insurance $184
Military/veteran USAA $840
Married State Farm $901
Single State Farm $964
Excellent credit Central Insurance $735
Good credit Central Insurance $1,076
Bad credit Central Insurance $1,435
Male teens State Farm $3,989
Female teens State Farm $3,772
Ticket GEICO $1,202
At-fault accident Central Insurance $1,278
DUI State Farm $1,785

How to Save on Car Insurance in New Mexico

If you’re looking to save on auto insurance in New Mexico, consider the following strategies:

  1. Increase your deductibles. The higher your deductibles are, the less your monthly premium will be. However, make sure you have enough money set aside to cover the higher deductible in the event of an accident.
  2. Drive a used vehicle. In general, used vehicles are cheaper to insure than new ones. Additionally, if your car is more than 10 years old, consider dropping collision and comprehensive coverages, as the premiums may add up to more than the car’s worth.
  3. Shop around for discounts. Providers offer different discount options and amounts, so it’s worth looking around at what’s available.

Minimum Car Insurance in New Mexico

New Mexico requires all drivers to carry liability coverage with the following minimum limits:

Coverage New Mexico required limit
Bodily injury liability per person/per accident $25,000/$50,000
Property damage liability per accident $10,000

We recommend purchasing more than the minimum requirements to protect yourself financially in the event of an accident.

Fault Law in New Mexico

Like the majority of states, New Mexico is an at-fault state. That means the party who caused the accident is financially responsible for the costs of all the others involved in the accident. If you cause an accident and your insurance limits do not cover all the costs, the other party can go after your assets in court.

That’s why it’s important to purchase the right amount of auto insurance, depending on your financial situation. How much auto insurance you need depends on your net worth and assets.


New Mexico is one of six states that does not require drivers to file an SR-22 after a DUI or other serious violation. However, to reinstate a revoked license, you must provide proof that you hold minimum liability coverage. If you don’t, you may receive a Notice of Noncompliance and risk further license and registration suspension.

Additionally, while New Mexico does not require SR-22s, expect your premium to increase after a serious violation. For example, after a DUI in New Mexico, the average premium will double.


Auto insurance in New Mexico costs less than in other states. While New Mexico does require drivers with a serious violation to file an SR-22, you must carry minimum liability insurance and provide proof of insurance for license reinstatement. To find the best rate, get quotes from at least three companies.


Over two decades in the business, has collected millions of data points on customer success with each auto insurance provider. We use our proprietary database along with state-specific laws and information on coverage requirements, fault systems, and SR-22s to summarize how much you can expect to pay.

Frequently Asked Questions

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

Yes, out-of-state insurance is acceptable in New Mexico as long as it meets the state’s minimum liability requirements. If you hold out-of-state insurance, you must submit a signed Affidavit of Non-Use/Out-of-State insurance to the New Mexico Insurance Identification Database (IIDB).

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

Like in most states, in New Mexico, auto insurance follows the car, not the person who bought the policy. That means if someone borrows your vehicle and gets into an accident, your insurance will cover the damages. Keep in mind the claim goes on your insurance record and could increase your rates.

Is it legal to drive without insurance in New Mexico?

No, it is not legal to drive without insurance in New Mexico. Driving without insurance in New Mexico is a misdemeanor and can result in registration suspension, vehicle impoundment, a fine of up to $300, and up to 90 days in jail.

Is New Mexico a PIP state?

No. New Mexico does not require PIP (personal injury protection). That’s because New Mexico is an at-fault state, meaning the driver who caused the accident covers the other party’s expenses under medical payments coverage.


  1. Fatality Facts 2021: Males and females. Insurance Institute for Highway Safety and Highway Loss Data Institute. (2023, May).