What is the best car insurance company in New Mexico?

The best car insurance company in New Mexico for one driver may not be the best for another. Insurance companies offer varied services, coverages and specializations that can make them more or less ideal for different drivers. For instance, if you have several prior incidents on your driving record in the last three to five years, you may want a company that caters to high-risk drivers. Similarly, if you drive a classic car, you may prefer a company that offers unique coverage suited to such vehicles. Those who rarely drive but still need coverage may want to consider companies with good telematics insurance programs. Ultimately, the best company for you may be the one that delivers the coverage and services you want at the most competitive price.

What is the cheapest car insurance company in New Mexico?

Finding a company with low rates is top of mind for many New Mexico car insurance shoppers. Based on our research, some of the cheapest auto insurance companies in New Mexico include Central Mutual, Geico, USAA, Progressive and Encompass. We chose these companies because they offer low rates without sacrificing customer service, coverage options, discount variety or financial strength.

What is full coverage auto insurance in New Mexico?

The term full coverage can mean different things with different insurance providers. In general, full coverage includes liability insurance along with comprehensive and collision coverage. Some providers may include towing and lockout services or rental reimbursement as part of a full coverage package, though, so it is important to understand what coverage you really need to avoid paying for duplicate or unnecessary coverage types. Liability limits and car insurance deductible amounts do not impact the concept of full coverage insurance. However, insurance experts recommend that drivers carry higher liability limits than the state minimum requirement for better financial protection.

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. The state minimum requirements for New Mexico are $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident and $10,000 of property damage liability. With the rate of uninsured motorists rising, you may want to consider adding uninsured motorist bodily injury liability to your policy, as well. This optional coverage helps pay for medical costs you and your passengers incur if you are hit by a driver who does not have an active insurance policy. If you are concerned about repairing your vehicle, comprehensive and collision coverage are worth considering, too.

For credit based-based insurance scores:

These rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

For incident-based insurance rates:

Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

For age-based insurance rates:

Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

For teen insurance rates:

Rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

For mileage-based insurance rates:

Rates were calculated by evaluating our base profile with the following differences in mileage: 2K, 5K, 12K (base), 15K and 20K.

For model-based insurance rates:

To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base). For new vs used vehicles, we also included the following years in our calculations: 2016, 2017, 2018, 2019 (base) and 2020.

For gender-based insurance rates:

The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

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Average cost of car insurance in New Mexico for 2025

Written by

Shannon Martin

Edited by

Lisa McArdle

Edited by

Lisa McArdle

Updated Apr 01, 2025

The average annual cost of car insurance in NM is $2,200 for full coverage and $443 for minimum coverage.

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How much is car insurance in New Mexico?

New Mexico drivers pay an average of $443 for minimum coverage and $2,200 for full coverage car insurance per year. Several factors may impact auto insurance rates in New Mexico, including the city you live in as well as your age, gender, marital status, driving record and credit history. It may be beneficial to notify your insurance carrier and shop around 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 $800 per year for minimum coverage and $2,685 for a full coverage policy. When compared to average car insurance rates in many other states, drivers in New Mexico typically enjoy lower premiums.

Key takeaways

The average full coverage premium in New Mexico is $2,200 per year, which is around $183 per month. For minimum coverage, the average is $443 per year, which is approximately $37 per month.
New Mexico drivers with poor credit pay, on average, 92 percent more than drivers with good credit.
A speeding ticket conviction increases New Mexico car insurance rates by an average of 17 percent more, while a DUI causes an average increase of around 78 percent more.
In New Mexico, 18-year-old drivers on their own policies typically pay more than any other age group.

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New Mexico car insurance rates by city

The city you live in may also impact your New Mexico car insurance rate. Each city has its own crime statistics, repair costs, population density and weather events that may raise or lower average car insurance costs. Below you can compare average rates in some of New Mexico's largest cities against the state average.

City	Avg. annual full coverage premium	Avg. savings vs. state average
Navajo Dam	$1,932	-13%
Santa Fe	$2,142	-3%
Amalia	$2,247	+2%
Hernandez	$2,183	-1%
La Madera	$2,211	+0%
Tesuque	$2,118	-4%
Mills	$2,142	-3%
Watrous	$2,135	-3%
Winston	$1,946	-12%
Berino	$2,018	-9%
Mule Creek	$1,887	-15%
Silver City	$1,833	-18%
Broadview	$2,163	-2%
Crossroads	$2,147	-2%
Taiban	$2,169	-1%
Lakewood	$2,208	+0%
Malaga	$2,236	+2%
Whites City	$2,238	+2%
Mescalero	$2,031	-8%
Orogrande	$2,007	-9%
Ruidoso	$2,007	-9%
Weed	$1,946	-12%
Holman	$2,154	-2%
Montezuma	$2,182	-1%
Springer	$2,157	-2%
Lemitar	$2,108	-4%
Polvadera	$2,097	-5%
Las Cruces	$1,950	-12%
Lordsburg	$1,861	-17%
Mimbres	$1,850	-17%
Yatahey	$2,026	-8%
Aztec	$1,930	-13%
La Plata	$1,924	-13%
Shiprock	$1,966	-11%
Arroyo Seco	$2,271	+3%
Chamisal	$2,214	+1%
Glorieta	$2,168	-1%
Llano	$2,217	+1%
Medanales	$2,232	+1%
Red River	$2,236	+2%
Jemez Springs	$2,185	-1%
Regina	$2,182	-1%
San Fidel	$2,014	-9%
Albuquerque	$2,441	+10%
Rio Rancho	$2,216	+1%
Newcomb	$2,031	-8%
Alcalde	$2,219	+1%
Cebolla	$2,205	+0%
Chama	$2,260	+3%
Espanola	$2,207	+0%
Ohkay Owingeh	$2,211	+0%
Truchas	$2,208	+0%
Los Lunas	$2,303	+5%
House	$2,122	-4%
Kenna	$2,122	-4%
Roswell	$2,178	-1%
Caprock	$2,196	-0%
Jal	$2,175	-1%
Maljamar	$2,231	+1%
Monument	$2,227	+1%
Holloman Air Force Base	$1,840	-18%
Picacho	$2,079	-6%
Tucumcari	$2,134	-3%
Bard	$2,129	-3%
Folsom	$2,218	+1%
Gladstone	$2,175	-1%
Bosque	$2,215	+1%
Gallina	$2,292	+4%
La Loma	$2,158	-2%
Rociada	$2,202	+0%
Wagon Mound	$2,175	-1%
San Acacia	$2,110	-4%
Arrey	$1,939	-13%
Caballo	$1,917	-14%
Garfield	$1,858	-17%
Hatch	$1,917	-14%
Deming	$1,819	-19%
Hanover	$1,833	-18%
Hillsboro	$1,910	-14%
La Mesa	$1,951	-12%
Organ	$1,993	-10%
Floyd	$2,125	-3%
Carlsbad	$2,235	+2%
Hobbs	$2,243	+2%
Lincoln	$2,059	-7%
Ruidoso Downs	$2,079	-6%
Newkirk	$2,198	-0%
Trementina	$2,226	+1%
Pena Blanca	$2,170	-1%
Ramah	$2,016	-9%
Cubero	$2,029	-8%
Counselor	$2,149	-2%
Eagle Nest	$2,149	-2%
Jarales	$2,250	+2%
Jemez Pueblo	$2,164	-2%
Laguna	$2,120	-4%
Ponderosa	$2,198	-0%
Santo Domingo Pueblo	$2,188	-1%
San Ysidro	$2,188	-1%
Cerrillos	$2,104	-4%
Edgewood	$2,196	-0%
Tohatchi	$1,994	-10%
Flora Vista	$1,910	-14%
Abiquiu	$2,214	+1%
Costilla	$2,227	+1%
Dixon	$2,212	+1%
Ranchos De Taos	$2,250	+2%
Vadito	$2,228	+1%
Vallecitos	$2,227	+1%
Paguate	$2,091	-5%
Placitas	$2,169	-1%
Tijeras	$2,297	+4%
Willard	$2,231	+1%
La Jara	$2,198	-0%
Lindrith	$2,210	+0%
Pueblo Of Acoma	$2,063	-6%
Moriarty	$2,219	+1%
Nageezi	$2,021	-9%
Peralta	$2,307	+5%
Prewitt	$1,992	-10%
Clines Corners	$2,131	-3%
Gallup	$1,981	-10%
Algodones	$2,180	-1%
Coyote	$2,233	+1%
Estancia	$2,260	+3%
Milan	$1,980	-11%
Sandia Park	$2,306	+5%
Chaparral	$2,012	-9%
Lingo	$2,127	-3%
Fort Stanton	$1,977	-11%
Glencoe	$2,054	-7%
Hondo	$2,059	-7%
Pinon	$2,036	-8%
San Patricio	$2,019	-9%
Cleveland	$2,200	-0%
Magdalena	$2,041	-8%
Elephant Butte	$1,849	-17%
Santa Teresa	$2,041	-8%
Glenwood	$1,921	-14%
Hachita	$1,851	-17%
Clovis	$2,135	-3%
Melrose	$2,182	-1%
Texico	$2,175	-1%
Eunice	$2,208	+0%
Rainsville	$2,149	-2%
Roy	$2,133	-3%
Aragon	$1,942	-12%
San Antonio	$2,039	-8%
Williamsburg	$1,880	-16%
Playas	$1,903	-14%
Arenas Valley	$1,835	-18%
Buckhorn	$1,839	-18%
Columbus	$1,867	-16%
Zuni	$1,962	-11%
Blanco	$1,920	-14%
Chimayo	$2,276	+3%
Los Ojos	$2,292	+4%
Valmora	$2,198	-0%
Datil	$2,068	-6%
Rincon	$1,952	-12%
Sunland Park	$2,064	-6%
Tres Piedras	$2,238	+2%
Elida	$2,122	-4%
Fort Sumner	$2,164	-2%
Grady	$2,183	-1%
Rogers	$2,136	-3%
Lovington	$2,242	+2%
Alamogordo	$1,776	-21%
Cloudcroft	$1,952	-12%
Encino	$2,177	-1%
Capulin	$2,162	-2%
Conchas Dam	$2,200	+0%
Grenville	$2,215	+1%
Pep	$2,141	-3%
Portales	$2,087	-5%
Yeso	$2,206	+0%
Lake Arthur	$2,172	-1%
Carrizozo	$1,977	-11%
Alto	$2,037	-8%
Bent	$1,895	-15%
Mayhill	$2,084	-5%
Nogal	$1,992	-10%
Tularosa	$1,876	-16%
Amistad	$2,165	-2%
Bluewater	$2,008	-9%
Tatum	$2,143	-3%
Corona	$2,187	-1%
Sunspot	$2,033	-8%
Tinnie	$2,148	-2%
Clayton	$2,184	-1%
Garita	$2,220	+1%
Mcalister	$2,147	-2%
Saint Vrain	$2,169	-1%
Loving	$2,252	+2%
Logan	$2,158	-2%
Crownpoint	$2,018	-9%
Milnesand	$2,133	-3%
Hope	$2,156	-2%
Loco Hills	$2,184	-1%
Cuervo	$2,161	-2%
Mosquero	$2,189	-1%
Animas	$1,846	-18%
Ojo Feliz	$2,142	-3%
Derry	$1,978	-11%
Anthony	$1,999	-10%
Bayard	$1,832	-18%
Faywood	$1,862	-17%
Gila	$1,885	-15%
San Jon	$2,131	-3%
Dona Ana	$1,972	-11%
Hurley	$1,834	-18%
Redrock	$1,883	-16%
Sedan	$2,178	-1%
Quay	$2,105	-4%
La Joya	$2,118	-4%
San Rafael	$2,013	-9%
Torreon	$2,174	-1%
Fence Lake	$1,991	-10%
Gamerco	$1,998	-10%
Casa Blanca	$2,103	-5%
Claunch	$2,048	-7%
Bernalillo	$2,203	+0%
Stanley	$2,210	+0%
Veguita	$2,160	-2%
Cochiti Pueblo	$2,266	+3%
Church Rock	$2,013	-9%
Continental Divide	$1,990	-10%
Mentmore	$2,042	-7%
Thoreau	$2,012	-9%
Jamestown	$2,033	-8%
Kirtland	$1,923	-13%
El Prado	$2,256	+2%
Penasco	$2,220	+1%
San Cristobal	$2,220	+1%
Serafina	$2,146	-3%
Tererro	$2,214	+1%
Pinehill	$2,034	-8%
Fruitland	$1,941	-13%
Ilfeld	$2,204	+0%
Lamy	$2,082	-6%
Pecos	$2,216	+1%
Santa Cruz	$2,145	-3%
Valdez	$2,224	+1%
Anton Chico	$2,172	-1%
Sheep Springs	$2,027	-8%
Canones	$2,222	+1%
Carson	$2,246	+2%
Cerro	$2,235	+2%
Embudo	$2,239	+2%
Ojo Caliente	$2,213	+1%
Velarde	$2,245	+2%
Youngsville	$2,269	+3%
Fort Wingate	$1,999	-10%
Mexican Springs	$1,964	-11%
Isleta	$2,383	+8%
Cochiti Lake	$2,160	-2%
Rehoboth	$2,016	-9%
Belen	$2,367	+7%
Cuba	$2,128	-3%
Cimarron	$2,214	+1%
Miami	$2,181	-1%
Mora	$2,226	+1%
Raton	$2,173	-1%
Sapello	$2,187	-1%
Quemado	$2,021	-9%
Monticello	$1,884	-15%
Rodeo	$1,876	-16%
Maxwell	$2,156	-2%
Socorro	$2,127	-3%
Pie Town	$2,051	-7%
White Sands Missile Range	$1,991	-10%
Cliff	$1,888	-15%
Mesquite	$1,961	-12%
Smith Lake	$2,038	-8%
Farmington	$1,903	-14%
Cedarvale	$2,242	+2%
Grants	$1,954	-12%
New Laguna	$2,155	-2%
Brimhall	$1,949	-12%
Vado	$1,952	-12%
Causey	$2,130	-3%
Dexter	$2,201	+0%
Hagerman	$2,184	-1%
High Rolls Mountain Park	$2,009	-9%
La Luz	$1,895	-15%
Sacramento	$1,953	-12%
Timberon	$2,050	-7%
Guadalupita	$2,176	-1%
Ocate	$2,192	-0%
Solano	$2,149	-2%
Ute Park	$2,171	-1%
Luna	$1,909	-14%
Reserve	$1,929	-13%
Truth Or Consequences	$1,919	-14%
Salem	$1,888	-15%
Santa Clara	$1,822	-19%
Fort Bayard	$1,859	-17%
Mesilla Park	$1,961	-12%
Cedar Crest	$2,299	+4%
Bloomfield	$1,946	-12%
Mountainair	$2,249	+2%
Corrales	$2,268	+3%
Bosque Farms	$2,248	+2%
Santa Rosa	$2,123	-4%
Nara Visa	$2,167	-2%
Sanostee	$2,029	-8%
Canjilon	$2,233	+1%
Taos Ski Valley	$2,257	+3%
El Rito	$2,232	+1%
Los Alamos	$1,957	-12%
Questa	$2,258	+3%
Ribera	$2,205	+0%
Rowe	$2,236	+2%
San Jose	$2,220	+1%
Buena Vista	$2,144	-3%
Artesia	$2,133	-3%
Mcdonald	$2,239	+2%
Capitan	$2,040	-8%
Des Moines	$2,200	-0%
Vanderwagen	$2,015	-9%
Navajo	$2,014	-9%
Dulce	$2,261	+3%
Taos	$2,237	+2%
Trampas	$2,238	+2%
Chacon	$2,199	-0%
Waterflow	$1,928	-13%
Petaca	$2,226	+1%
Tierra Amarilla	$2,206	+0%
Las Vegas	$2,186	-1%
Angel Fire	$2,172	-1%

Average car insurance costs by age and gender in New Mexico

The average cost of car insurance in NM varies based on your age and gender. Although not all states allow the use of age and gender as insurance rating factors, New Mexico does. Those under the age of 25 typically pay more for car insurance and are viewed as high-risk drivers, while average rates tend to decline as you age (until your 70s). Men also pay more, on average, than women because they are more likely to engage in risky driving behaviors like speeding.

The average premiums below are based on drivers with their own policy, with the exception of 16-year-old drivers, who are listed on their parents' policy.

Age 40

Average annual full coverage premium in NM

$2,223

Average minimum coverage premium in NM

$437

Age 50

Average annual full coverage premium in NM

$2,067

Average minimum coverage premium in NM

$415

Age 60

Average annual full coverage premium in NM

$2,009

Average minimum coverage premium in NM

$415

Age 70

Average annual full coverage premium in NM

$2,159

Average minimum coverage premium in NM

$484


Age 16*	Average annual full coverage premium in NM $4,571	Average minimum coverage premium in NM $1,183
Age 18	Average annual full coverage premium in NM $7,313	Average minimum coverage premium in NM $1,769
Age 20	Average annual full coverage premium in NM $4,750	Average minimum coverage premium in NM $1,051
Age 25	Average annual full coverage premium in NM $2,804	Average minimum coverage premium in NM $561
Age 30	Average annual full coverage premium in NM $2,373	Average minimum coverage premium in NM $462
Age 40	Average annual full coverage premium in NM $2,223	Average minimum coverage premium in NM $437
Age 50	Average annual full coverage premium in NM $2,067	Average minimum coverage premium in NM $415
Age 60	Average annual full coverage premium in NM $2,009	Average minimum coverage premium in NM $415
Age 70	Average annual full coverage premium in NM $2,159	Average minimum coverage premium in NM $484

*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied

Age 40

Average annual full coverage premium in NM

$2,178

Average minimum coverage premium in NM

$448

Age 50

Average annual full coverage premium in NM

$2,039

Average minimum coverage premium in NM

$417

Age 60

Average annual full coverage premium in NM

$1,973

Average minimum coverage premium in NM

$414

Age 70

Average annual full coverage premium in NM

$2,110

Average minimum coverage premium in NM

$479


Age 16*	Average annual full coverage premium in NM $4,306	Average minimum coverage premium in NM $1,126
Age 18	Average annual full coverage premium in NM $6,410	Average minimum coverage premium in NM $1,628
Age 20	Average annual full coverage premium in NM $4,170	Average minimum coverage premium in NM $979
Age 25	Average annual full coverage premium in NM $2,608	Average minimum coverage premium in NM $543
Age 30	Average annual full coverage premium in NM $2,308	Average minimum coverage premium in NM $467
Age 40	Average annual full coverage premium in NM $2,178	Average minimum coverage premium in NM $448
Age 50	Average annual full coverage premium in NM $2,039	Average minimum coverage premium in NM $417
Age 60	Average annual full coverage premium in NM $1,973	Average minimum coverage premium in NM $414
Age 70	Average annual full coverage premium in NM $2,110	Average minimum coverage premium in NM $479

*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied

Bankrate’s take: While younger drivers pay more for car insurance due to inexperience, historically, men tend to pay the most. Statistically, men are more prone than women to road rage and aggressive behaviors that trigger it, such as speeding, gesturing and preventing other cars from merging. As drivers get older, the average cost of car insurance starts to even out, though.

Cost considerations for young drivers in New Mexico

Young drivers may be able to offset some of their age-related premium hikes by remaining insured on their parents' policies. For instance, an 18-year-old on their own policy would pay, on average, 88 percent more for coverage than they would on their parents’ policy. Unfortunately, drivers who own their own vehicle or no longer live with their parents may be required to carry their own policy.


Age 16*	Avg. annual premium for drivers in NM $4,439
Age 17	Avg. annual premium for drivers in NM $4,019
Age 18	Avg. annual premium for drivers in NM $3,655
Age 19	Avg. annual premium for drivers in NM $3,276
Age 20	Avg. annual premium for drivers in NM $3,065

*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied


Age 18	Avg. annual premium for drivers in NM $6,861
Age 19	Avg. annual premium for drivers in NM $5,001
Age 20	Avg. annual premium for drivers in NM $4,460

*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied

Age	Avg. annual premium difference for drivers on their own policy
Age 18	88 percent more
Age 19	53 percent more
Age 20	45 percent more

*18- and 20-year-old are renters on their own policies with no discounts applied

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How does driving record impact the cost of car insurance in New Mexico?

Drivers with tickets, accidents or DUI convictions on their records typically see higher rates than drivers with a clean record. More serious offenses, like a DUI or multiple at-fault accidents, tend to impact premiums more than a single speeding ticket conviction. Note that not all carriers will extend coverage to drivers with a DUI on their record. For more information, you could reach out to carriers directly.

Here is a look at how your driving record can impact your car insurance premium.


Clean driving record	Avg. annual premium* in NM $2,200	Percentage increase from NM avg. annual premium* 0%
Speeding ticket conviction	Avg. annual premium* in NM $2,580	Percentage increase from NM avg. annual premium* 17%
At-fault accident	Avg. annual premium* in NM $2,966	Percentage increase from NM avg. annual premium* 35%
DUI conviction	Avg. annual premium* in NM $3,925	Percentage increase from NM avg. annual premium* 78%

*The rates reflected are for full coverage policies.

Car insurance rates in New Mexico by credit score

Although credit is not a factor in states where the law prohibits it, carriers can consider your credit history when determining rates in New Mexico. Drivers with poor credit-based insurance scores pay average rates 92 percent more than those with good credit, so improving your credit standing might be an effective strategy to reduce insurance costs.

Here is how car insurance premiums vary between credit tiers.


Poor	Avg. annual premium* in NM $4,215	Percentage change from NM average annual premium* 92%
Average	Avg. annual premium* in NM $2,391	Percentage change from NM average annual premium* 9%
Good	Avg. annual premium* in NM $2,200	Percentage change from NM average annual premium* 0%
Excellent	Avg. annual premium* in NM $1,848	Percentage change from NM average annual premium* -16%

*Rates reflect full coverage policies.

New Mexico car insurance rates by vehicle type

Another factor New Mexico car insurance companies use to determine rates is your vehicle's make and model. If you're looking to save on your premium, considering the vehicle you drive may help. As demonstrated below, luxury vehicles and those with high repair costs or low safety ratings tend to cost more to insure.

See how vehicle type can impact your car insurance rate below:


Toyota Camry	Avg. annual premium* in NM $2,200
Ford F-150	Avg. annual premium* in NM $2,252
Honda Odyssey	Avg. annual premium* in NM $2,039
BMW 330i	Avg. annual premium* in NM $2,763
Toyota Prius	Avg. annual premium* in NM $2,318

*Rates reflect full coverage policies.

Estimate your car insurance cost in New Mexico

Having a good idea of what a realistic price for car insurance is can help you when creating an insurance budget. At Bankrate, we want to alleviate some of the stress you may feel from these financial decisions, so we made the handy tool below. Once you enter some basic information, you’ll receive a rough insurance premium estimate. While this isn't an exact quote, it can help you get a general feel of what you might pay for budgeting purposes.

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How to save on car insurance in New Mexico

On average, car insurance in New Mexico is cheaper than the national average, but drivers may be able to lower their rates further. If your average premium is out of reach, look for ways to cut costs instead of driving without insurance. With a bit of effort, there are several things you can do to potentially lower your premiums:

Shop around: Considering several companies and comparing free quotes from many can help you find which will offer you the best rates for the coverage you want.
Raise your deductible: Your deductible is what you must pay before your insurance will pay out toward your costs. The higher your deductible, the more you must pay out of pocket before a claim can help, but the lower your rates may be. Experts recommend using caution when considering an increase in your deductible.
Look for discounts: Almost all carriers offer discounts. Some of the most common include safe driver, bundling and good student discounts. Reviewing potential discounts with an agent may help ensure you're taking advantage of all the savings opportunities you're eligible for.
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

The best car insurance company in New Mexico for one driver may not be the best for another. Insurance companies offer varied services, coverages and specializations that can make them more or less ideal for different drivers. For instance, if you have several prior incidents on your driving record in the last three to five years, you may want a company that caters to high-risk drivers. Similarly, if you drive a classic car, you may prefer a company that offers unique coverage suited to such vehicles. Those who rarely drive but still need coverage may want to consider companies with good telematics insurance programs. Ultimately, the best company for you may be the one that delivers the coverage and services you want at the most competitive price.
The average annual premium for New Mexico is $2,200 for full coverage and $443 for minimum coverage. However, your rate will vary based on many factors, such as your driving history and elected coverage options, so your premium may be higher or lower than average. If you feel that your rate is too high, compare costs with other insurance providers and speak to your insurance agent about possible discounts.
Finding a company with low rates is top of mind for many New Mexico car insurance shoppers. Based on our research, some of the cheapest auto insurance companies in New Mexico include Central Mutual, Geico, USAA, Progressive and Encompass. We chose these companies because they offer low rates without sacrificing customer service, coverage options, discount variety or financial strength.
The term full coverage can mean different things with different insurance providers. In general, full coverage includes liability insurance along with comprehensive and collision coverage. Some providers may include towing and lockout services or rental reimbursement as part of a full coverage package, though, so it is important to understand what coverage you really need to avoid paying for duplicate or unnecessary coverage types. Liability limits and car insurance deductible amounts do not impact the concept of full coverage insurance. However, insurance experts recommend that drivers carry higher liability limits than the state minimum requirement for better financial protection.
The amount of car insurance you need in New Mexico depends on your driving habits, lifestyle and budget. The state minimum requirements for New Mexico are $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident and $10,000 of property damage liability. With the rate of uninsured motorists rising, you may want to consider adding uninsured motorist bodily injury liability to your policy, as well. This optional coverage helps pay for medical costs you and your passengers incur if you are hit by a driver who does not have an active insurance policy. If you are concerned about repairing your vehicle, comprehensive and collision coverage are worth considering, too.

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

Premium

A premium is the amount the policyholder pays to the insurance company, typically on a monthly, semi-annual or annual basis, to maintain an active insurance policy.

Full coverage car insurance

Full coverage car insurance provides physical damage coverage for your own vehicle. It typically includes comprehensive and collision coverage in addition to state-mandated liability coverage.

Deductible

A deductible is the amount the policyholder agrees to pay out-of-pocket before the insurance company begins to cover expenses related to a claim.

Bankrate utilizes Quadrant Information Services to analyze April 2025 rates for all 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 for our base profile are based on the following characteristics and full coverage limits:

40 year old

Single male and female driver

2023 Toyota Camry

Primary vehicle

Good credit score

Clean driving record

Commutes 5 days

Bodily injury liability

$100,000 per person
$300,000 per accident

Property damage liability

$50,000 per accident

Personal injury protection

$100,000 per accident

Uninsured motorist bodily injury

$100,000 per person
$300,000 per accident

Collision deductible

$500

Comprehensive deductible

$500

Other profiles

These rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.
Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
Rates were calculated by evaluating our base profile with the following differences in mileage: 2K, 5K, 12K (base), 15K and 20K.
To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base). For new vs used vehicles, we also included the following years in our calculations: 2016, 2017, 2018, 2019 (base) and 2020.
The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.

Written by

Shannon Martin

Bankrate Insurance Expert | Writer, Insurance

Average cost of car insurance in New Mexico for 2025

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Key takeaways

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New Mexico car insurance rates by city

Average car insurance costs by age and gender in New Mexico

Cost considerations for young drivers in New Mexico

Compare auto insurance rates

How does driving record impact the cost of car insurance in New Mexico?

Car insurance rates in New Mexico by credit score

New Mexico car insurance rates by vehicle type

Estimate your car insurance cost in New Mexico

Calculate your monthly car insurance payment

How to save on car insurance in New Mexico

Frequently asked questions

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What is full coverage auto insurance in New Mexico?

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For mileage-based insurance rates:

For model-based insurance rates:

For gender-based insurance rates: