Based on extensive premium research by Bankrate’s insurance editorial team, Albuquerque drivers pay an average of $1,694 annually for full coverage car insurance — or $141 per month — and $404 per year for state-mandated minimum coverage. However, we identified a few carriers that offer average rates below the city averages. Our team determined that the best cheap car insurance in Albuquerque may be found with USAA, Geico and State Farm.


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Best cheap car insurance companies in Albuquerque

Based on average rate data from Quadrant Information Services, some of the cheapest Albuquerque car insurance rates may be found with USAA, Geico and State Farm. However, we know that average rates likely aren’t your only consideration, so we evaluated carriers based on a wide range of factors that may be important to New Mexico drivers. These include available discounts, coverage options and ratings from the 2022 J.D. Power Auto Insurance Study. We also looked at digital tools and financial strength rankings from AM Best. These factors were used to assign each carrier a Bankrate Score out of 5 points. If you’re looking for cheap car insurance in Albuquerque, you may want to start with quotes from these companies.

Insurance company Bankrate Score J.D. Power score (Southwest region) Average annual premium for full coverage Average annual premium for minimum coverage
USAA 4.3 856/1,000* $1,366 $308
Geico 4.4 827/1,000 $1,461 $332
State Farm 4.2 848/1,000 $1,664 $382

*USAA is not technically ranked with J.D. Power due to eligibility restrictions. 


USAA is well known for its outstanding customer service. The carrier earned the highest customer satisfaction score in the Southwest region of J.D. Power’s Auto Insurance Study, although it is not technically eligible for ranking as it only writes policies for active-duty military members, veterans and their eligible families. If you qualify for coverage, you might be interested in the carrier’s military-focused discounts and coverage options. For instance, savings may be available for garaging a vehicle on base. USAA has some of the lowest average rates in Albuquerque, but the carrier only offers quotes online or over the phone, so it may not be the best option for drivers who prefer to work with an agent in person.

Learn more: USAA Insurance review 


Geico offers low average premiums in Albuquerque and a long list of potential discounts for additional savings. Policyholders may save extra with discounts for bundling, good students, military service, professional affiliation and enrolling in the carrier’s telematics program, DriveEasy. Geico scored above the industry average in the Southwest region of J.D. Power’s customer satisfaction study, but it does not offer as many endorsements as some competitors.

Learn more: Geico Insurance review

State Farm

State Farm has over 60 agents located in the greater Albuquerque area, which may be part of the reason it achieved the highest official ranking in the Southwest region of J.D. Power’s customer satisfaction study. State Farm’s rates may not be the lowest on our list, but they still fall below the city average, and policyholders may save extra with potential discounts for bundling, safe driving, good students and enrolling in one of the carrier’s two telematics programs. Drivers may be able to build a more robust State Farm policy with endorsements for roadside assistance, ridesharing, rental car reimbursement and travel expenses.

Learn more: State Farm Insurance review

How to get and keep the cheapest car insurance in Albuquerque

Although Albuquerque’s average rates are lower than the national average, they are still high compared to the New Mexico average of $1,591 for full coverage and $346 for minimum coverage. If you’re looking to find cheap rates and keep them steady over time, you might consider the following strategies:

  • Shop around and compare quotes: Carriers have their own algorithms for determining car insurance rates, so comparing quotes from different companies may help you identify which can offer you the best rates for your circumstances and coverage needs.
  • Maintain a clean driving record: Drivers with clean driving records typically see the cheapest insurance rates. Even a single speeding ticket may increase your rate considerably. In addition to lower average premiums, a clean driving record may earn you more savings through safe driving discounts.

Frequently asked questions

    • The best car insurance company may vary based on your preferences and rating factors. Car insurance companies in New Mexico use rating factors like your credit score, vehicle make and model, age and gender to determine rates. Comparing auto insurance quotes may help you identify the cheapest company for your coverage needs.
    • Currently, New Mexico has the fourth-highest rate of uninsured drivers in the U.S., according to the Insurance Information Institute. The state has an uninsured driver rate of 21.8 percent, which may be why New Mexico car insurance companies are required to offer you uninsured and underinsured motorist coverage (although these can be denied in writing). Although this coverage is not technically mandated as part of the state’s minimum coverage requirements, Albuquerque drivers might benefit from these coverage additions, given the high rate of uninsured drivers in the state.
    • Yes, you are mandated by law to carry at least a minimum amount of car insurance in New Mexico. The state minimum is 25/50/10, which translates to $25,000 in bodily liability coverage per person per accident; $50,000 total bodily injury per accident; and $10,000 property damage liability. The average cost of minimum coverage car insurance in Albuquerque is $404 a year. This is slightly higher than the state average of $346.
    • Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
      • $100,000 bodily injury liability per person
      • $300,000 bodily injury liability per accident
      • $50,000 property damage liability per accident
      • $100,000 uninsured motorist bodily injury per person
      • $300,000 uninsured motorist bodily injury per accident
      • $500 collision deductible
      • $500 comprehensive deductible

      To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

      These are sample rates and should only be used for comparative purposes.

    • Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

      Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

      • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
      • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
      • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.