Average cost of car insurance in New Mexico for 2023

How much is car insurance in New Mexico? 

New Mexico drivers pay an average of $346 for minimum coverage and $1,591 for full coverage car insurance per year. Several factors may impact auto insurance rates in New Mexico, including the city you live in, your age, gender, marital status, driving history and credit score. 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 $622 per year for minimum coverage and $2,014 for a full coverage policy. Drivers in New Mexico pay around 21 percent less for full coverage. Minimum coverage average rates are also lower in the Land of Enchantment by about 44 percent.

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. While drivers in Rio Rancho pay about the same as the state average, Albuquerque residents pay about 6 percent more. Below you can compare average rates in some of New Mexico's largest cities against the state average.

Average car insurance costs by age and gender in New Mexico

The average cost of car insurance in New Mexico 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, while average rates tend to decline as your 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. These average premiums are based on drivers with their own policy, with the exception of 16-year-old drivers, which are listed on their parents' policy.

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' policy. For instance, an 18-year-old on their own policy would pay, on average, 41 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.

*16- and 17-year-old drivers must be on their parents’ policy.

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

Drivers with tickets, accidents or DUI convictions on their record 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.

Car insurance rates in New Mexico by credit score

Although credit score is not a factor in all states, carriers can consider it when determining rates in New Mexico. Drivers with poor credit-based insurance scores pay average rates 62 percent higher than those with good credit, so improving your credit score might be an effective strategy to reduce your insurance costs.

New Mexico car insurance rates by vehicle type

Another factor New Mexico car insurance companies use to determine rates is your vehicle type, which includes your 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.

How to save on car insurance in New Mexico

Although average New Mexico car insurance premiums are below the national average, many drivers still want to get the lowest rate possible. With a bit of effort, there are several things you can do to potentially lower your premiums:

• Shop around: Companies weigh rating factors differently when calculating insurance rates. Comparing rates from a handful of carriers may help you narrow down the company which could offer you the lowest rate for your circumstances. 
• Raise your deductible: A deductible is the amount you will pay out of pocket for comprehensive or collision claims. Raising one or both deductibles may save you money on your premium, but note that insurance professionals recommend keeping your deductibles low enough that you could comfortably pay them out of pocket in the event of a claim. 
• Look for discounts: Almost all carriers offer discounts. Some of the most common include safe driver, bundling and good student. 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.

Estimate your car insurance cost in New Mexico

Frequently asked questions