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Average cost of car insurance in New Mexico for 2022

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How much a driver pays for auto insurance in New Mexico depends on numerous variables. Drivers in the Land of Enchantment typically find their rates are below the national average, with averages of $385 per year for minimum coverage and $1,419 per year for a full coverage policy.

How much does car insurance cost in New Mexico?

Several factors determine auto insurance rates in New Mexico, including the city you live in, your age, gender, marital status, driving history and credit score. It can be beneficial to notify your insurance carrier anytime you have a significant life event, such as a change in your daily commute or marital status.

The average cost of car insurance in the U.S. is $565 per year for minimum coverage and $1,674 for a full coverage policy. Drivers looking for insurance in New Mexico typically find that premiums are lower than average.

New Mexico car insurance rates by company

To find the best New Mexico car insurance rates, you may want to start by reviewing several carriers. Not only will you find the coverage you need, but you can also make sure you are getting the cheapest rates for your needs.

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Allstate $476 $1,893
Central $420 $1,541
Farmers $389 $1,278
Geico $348 $1,463
Iowa Farm Bureau $434 $1,498
MetLife $416 $1,374
Progressive $448 $1,310
State Farm $354 $1,396
USAA $270 $1,102

New Mexico car insurance rates by city

When you are looking for car insurance in New Mexico, it’s essential to understand that your actual rates will vary depending on where you live within the state. Below are some average costs for New Mexico’s most populous cities.

City Average annual premium for full coverage % increase in average annual premium
Albuquerque $1,614 12%
Las Cruces $1,292 -9%
Santa Fe $1,471 4%
Rio Rancho $1,498 6%
Roswell $1,438 1%
Farmington $1,312 -8%
South Valley $1,719 21%
Clovis $1,399 -1%
Hobbs $1,465 3%
Alamogordo $1,199 -16%
Carlsbad $1,469 4%
Deming $1,235 -13%
Gallup $1,353 -5%
Los Lunas $1,552 9%
Silver City $1,247 -12%
Portales $1,360 -4%
Las Vegas $1,433 1%
Anthony $1,315 -7%
Chaparral $1,316 -7%
Artesia $1,404 -1%

New Mexico car insurance rates by age

Like any state, age makes a big difference in the average cost of insurance for New Mexico drivers, and 18-year old drivers appear to pay the most typically. Keep in mind that other factors, such as how expensive your vehicle is, can affect average premium amounts as well.

Age Average annual premium in New Mexico
Age 16* $2,035
Age 18 $4,274
Age 20 $2,835
Age 25 $1,862
Age 30 $1,603
Age 40 $1,419
Age 50 $1,375
Age 60 $1,341
Age 70 $1,461

*Rates for the 16-year old drivers were calculated based on a parent’s policy

New Mexico car insurance rates by driving record

If you receive a speeding ticket, are at fault for an accident or are charged with a DUI, expect your car insurance rates in New Mexico to increase. A DUI can catapult your premiums by nearly 50%, and that’s just for a first offense.

Driving incident Average annual full coverage premium in New Mexico % increase in average annual premium
Speeding ticket $1,682 16%
Accident $1,953 27%
DUI $2,757 49%

How to save on car insurance in New Mexico

There are a variety of ways to save on car insurance rates in New Mexico. With a bit of effort, there are several things you can do to lower your premiums.

  • Shop around: Comparing rates from one carrier to another is a great way to save money. Each company has its method for calculating rates, and there can be many benefits when you compare multiple carriers and coverage options.
  • Raise your deductible: If you are willing to take on a higher deductible, it will save you additional money on your premiums. A deductible is your out-of-pocket costs for your comprehensive and collision claims. The more you agree to pay out of pocket, the lower your monthly premiums.
  • Look for discounts: Almost all carriers offer discounts, ranging from multi-policy bundling to a discount for good grades. But be sure to review all the options available from each carrier, as you may be eligible for discounts you were not aware were available.
  • Take a defensive driving course: If you take a defensive driving course, not only do you learn valuable driving skills that could make you a better driver, but you might earn an additional discount. Many carriers give you a break on your premiums if you take one, as long as it is an approved course.

Frequently asked questions

How much car insurance do I need in New Mexico?

The amount of car insurance you need in New Mexico depends on your driving habits, lifestyle and budget. In addition to state minimum requirements, you will probably want enough coverage to protect you financially and might want to consider carrying additional liability coverage, depending on your net worth. You may also need to add comprehensive and collision coverage if you have a loan or lease. You may also be required to purchase gap insurance if you lease or finance your car. The bottom line is that your insurance needs are unique to you, and working with a licensed auto insurance agent can guide you in the right direction.

Is New Mexico a no-fault state?

New Mexico is not a no-fault state, which means it is considered an at-fault one. If you are in an accident, whoever is ruled as the at-fault driver must use their insurance for payments towards property damage or medical expenses.

Is uninsured motorist coverage required in New Mexico?

No, drivers in New Mexico are not required to purchase uninsured motorist coverage (UM). However, before you say no to this optional coverage, keep in mind New Mexico the fourth highest state for the number of uninsured motorists in the country. Almost 22% of all drivers in the state drive uninsured, which could put you at financial risk. If you are in an accident with someone without insurance, this coverage helps pay for possible vehicle or property damage and medical payments.


Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Written by
Sara Coleman
Insurance Contributor
Sara Coleman is an insurance contributor at Bankrate. She has a couple of years of experience in writing for insurance domains such as The Simple Dollar,, and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability.