A lot goes into finding the most affordable car insurance in New Mexico. Many factors affect car insurance rates, including driver’s age, driving record, type of vehicle, and credit history.
Table of Contents
- New Mexico auto insurance costs by insurer
- New Mexico auto insurance premiums by driver age
- New Mexico car insurance premiums by gender and marital status
- Average New Mexico insurance rates after a violation or accident
- New Mexico auto insurance premiums by credit tier
- Expensive New Mexico cities
- Cheaper New Mexico cities
- List of insurance companies in New Mexico
- No-fault insurance in New Mexico information
- Sources used
New Mexico Auto Insurance Costs by Insurer
New Mexico residents have a lot of car insurance options. Here are a few and what you can expect to pay for each one:
- State Farm: $1,063 annually.
- USAA: $1,023 annually.
- Safeco: $994 annually.
- Allied: $1,246 annually.
- Dairyland: $1,320 annually.
- The Hartford: $1,339 annually.
- Progressive: $1,514 annually.
- Cal Casualty: $1,607 annually.
- Farmers: $1,866 annually.
- Allstate: $2,586 annually.
These annual averages, however, vary based on many factors. The best way to find the cheapest rates in New Mexico is to shop around.
New Mexico Auto Insurance Premiums by Driver Age
Younger drivers in New Mexico will pay, on average, more than double the insurance rates than drivers who are older. According to The Zebra, drivers who are between the ages of 16 and 19 pay the highest insurance rates. Due to their lack of driving experience, they may pay as much as three times the national average, with an average annual rate of $4,996.
These rates decrease with each year. A driver who is 16 in New Mexico under their parent’s policy will pay on average, $5,147 annually versus a 19-year-old also under their parent’s insurance, who pays an average of $4,144 annually.
New Mexico Car Insurance Premiums by Gender and Marital Status
A driver’s gender and marital status can also affect insurance rates in New Mexico. It is always a good idea to shop around to find the best rates. Additionally, military families in New Mexico may also receive discounts. USAA, an insurance company exclusive to active military members and their families, is available in New Mexico.
Average New Mexico Insurance Rates After A Violation or Accident
If you have an accident or traffic violation on your driving record, you may have higher insurance rates. Car insurance rates in New Mexico can increase by as much as 34% following a DUI and by as much as 33% following an accident in which you are at fault. While New Mexico residents tend to enjoy a slightly less than average increase in rates following a bad driving record, you can expect the following increases:
- Speeding ticket: Average expected increase of 15.78% ($1,972).
- DUI: Average expected increase of 34.68% ($2,017).
- At-fault car accident: Average expected increase of 33.19% ($1,972).
Just as a bad driving record can increase your insurance rates, it is helpful to discuss discounts with your insurance provider if you have a good driving record.
New Mexico Auto Insurance Premiums by Credit Tier
Drivers with less than perfect credit may also receive higher insurance premiums. Drivers with less than perfect credit can expect an increase of 40.1% compared to other drivers, or $2,196 per year. Drivers with no credit will also often pay more, usually as much as 37% more than drivers with good credit. ValuePenguin lists the cheapest insurance providers in New Mexico for people with bad credit to be State Farm and Geico, but rates vary depending on other factors, including age and location.
Expensive New Mexico Cities
Some cities in New Mexico tend to be more expensive for car insurance:
- Between 10-20% increase: Las Vegas, Carlsbad, Hobbs, Las Cruces, Chaparral, Gallup, Grants, and Los Alamos.
- Between 21-30% increase: Taos, Edgewood, Belen, and Espanola.
- Between 31-40% increase: Los Lunas, Santa Fe, and Rio Rancho.
- Over 40% increase: Albuquerque.
Cheaper New Mexico Cities
Just as some cities in New Mexico have higher insurance rates, some have cheaper rates. Cities that are less populated usually mean you are at a decreased risk of being in an accident. In addition to rural cities having cheaper rates, your commuting patterns can also affect insurance rates. If you travel far for work daily, you will usually have higher rates.
- Less than 10% increase: Alamogordo, Silver City, Deming, Portales, Artesia, Clovis, Aztec, Shiprock, Bloomfield, Lovington, Anthony, Sunland Park, Roswell, and Farmington.
List of Insurance Companies in New Mexico
There are many affordable insurance companies to choose from in New Mexico. Farm Bureau tends to be a popular choice for younger drivers with less than a perfect driving record. State Farm and Geico may also be an option, depending on your marital status and age.
Other insurance options in New Mexico include Allstate, Farmers, Progressive, USAA, and MetLife. The New Mexico average insurance rate is $5,605 annually for full coverage and $2,078 annually for minimum coverage.
No-fault Insurance in New Mexico Information
Most car insurance companies advertise prices based on minimum coverage. First, it is important to understand what the minimum requirements are in the state of New Mexico:
- $25,000 bodily injury liability per person.
- $50,000 bodily injury liability per crash.
- $10,000 property damage liability per crash.
Additionally, cheaper does not always mean better. If you are in an accident, you could end up paying more out of pocket for repairs. Comparing price quotes among New Mexico insurance providers is the best way to find an insurance policy that meets your needs.
If you are responsible for a car accident, full coverage insurance will cover the other driver’s medical treatment and property damages. A full coverage insurance policy includes both comprehensive and collision insurance This type of policy can be as much as 258% higher than minimum coverage, but if you are in an accident, it may end up actually saving you money.
Many car accidents can lead to extensive damages, which can easily exceed your coverage under a minimum policy. Also, the minimum insurance usually does not cover things like your car being stolen. If you do choose to go with minimum coverage, the cheapest in New Mexico is State Farm. Drivers receive quotes of up to 37% cheaper, or $570 each year.
Shopping around is the best way to find the right car insurance in New Mexico. Whether you have a less-than-perfect driving record or are a new teen driver, it is possible to find affordable car insurance in New Mexico.
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