A car accident occurs every 11 minutes in New Mexico, based on crash data from 2018. Car insurance is legally required in New Mexico to keep drivers safe and to cover their legal and financial responsibility in the event of an at-fault accident. In New Mexico, the average driver pays $1,388 for full coverage car insurance and $337 for minimum coverage car insurance.
The cheapest car insurance in New Mexico
Not all car insurance companies in New Mexico are created equal. Some providers offer lower rates than others. Here are the cheapest car insurance carriers in New Mexico, and their annual full coverage and minimum coverage premiums:
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
USAA is the cheapest car insurance company in New Mexico. The average full coverage policy costs $1,126 per year and the average minimum coverage policy costs $225 per year. However, only drivers who are active duty military members or veterans are eligible for coverage.
According to the company, drivers save an average of $707 per year when they switch to USAA. Drivers can also take advantage of discounts for being a safe driver, taking a driver training course, getting good grades in school, garaging a vehicle on a military base, insuring multiple cars and bundling policies.
Geico is a good option for New Mexico drivers who are looking for basic coverage, without the unnecessary extras, at an affordable price. The average driver pays $1,412 for a full coverage policy from Geico and $300 for a minimum coverage policy.
Geico’s coverage is fairly limited, but the company does offer a wide variety of discounts. There are savings opportunities for military members, federal employees, employee/membership groups, having a safe vehicle, going on emergency deployment, bundling policies and taking a defensive driving course.
State Farm is the top car insurance provider in the United States. Although it offers limited coverage, drivers can get below-average rates. In New Mexico, the average full coverage policy costs $1,364 per year and the average minimum coverage policy costs $303 per year.
With State Farm, New Mexico drivers can take advantage of discounts for being accident-free, being a smart student, bundling policies, being a student away at school, taking a driver training course and having a safe vehicle. There are also two safe driver discount programs, Steer Clear for drivers under 25 and Drive Safe & Save for adults over 25.
Allstate car insurance is more expensive than average, but drivers get access to robust coverage, like new car replacement and rideshare insurance. The average New Mexico driver pays $1,667 for a full coverage policy and $373 for a minimum coverage policy from Allstate.
Drivers in New Mexico can lower their rate by taking advantage of discounts, like getting good grades in school, having a car with anti-lock brakes, insuring a new car, signing a policy in advance and paying in full. Allstate also has an app-based safe driver discount program, called Drivewise, which rewards drivers for practicing safe behind-the-wheel skills.
Metropolitan Insurance, also known as MetLife, is a good provider for drivers who want specialty coverage, like special parts replacement and enhanced rental car damage coverage. In New Mexico, the average driver pays $1,436 for a full coverage policy and $387 for a minimum coverage policy.
MetLife offers a few discounts for additional savings. There are discounts for good drivers, bundling a home and auto insurance policy and enrolling in automatic payments. MetLife also has employer and membership group discounts, which can help New Mexico drivers save an average of 15% on their policy.
Affordable coverage for New Mexico drivers
Car insurance is legally required in New Mexico. Drivers must carry at least 25/50/10 liability insurance, which includes $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury liability coverage per accident and $10,000 in property damage liability coverage per accident.
Drivers looking for a cheap car insurance policy will pay the lowest rate if they buy minimum coverage insurance. However, there is no guarantee that minimum coverage insurance in New Mexico will cover the full cost of an at-fault accident.
Any financial liability that exceeds a driver’s policy limit will come directly out of their pocket. For example, if a driver causes an accident and the other car sustains $15,000 worth of damage, the at-fault driver would be responsible for paying the $5,000 difference.
How to get cheap car insurance in New Mexico
There are many ways that drivers can get cheap auto insurance in New Mexico. Here are some things to consider:
- Shop around: Avoid settling for the first insurance company you find. Instead, spend time researching and comparing providers. You should also compare price quotes to see which company can offer the lowest rate for the amount of coverage you need.
- Raise the deductible: The higher your policy’s deductible is, the lower your monthly premium will be. Before you raise the deductible, make sure you can afford the higher out-of-pocket cost in the event of a future claim.
- Improve your credit score: Most insurance companies will look at your credit score to calculate your rate. Drivers with a low credit score pay the highest rate, so working on your credit score can help you save money.
- Take a defensive driving course: Most insurance companies offer a discount to drivers who complete an approved defensive driving or driver training course. This discount can be beneficial for younger and older drivers who often pay the highest rates due to their increased risk.
Frequently asked questions
What is the best car insurance in New Mexico?
There are many car insurance companies in New Mexico, but there is not one provider that stands out as the best for every driver. Some drivers are looking for good customer service, others are looking for unique coverages and some want the lowest rates. Drivers in New Mexico should shop around and compare providers based on their needs to find the right match.
What is the average cost of car insurance in the U.S.?
In the United States, the average driver pays $1,738 for a full coverage insurance policy. In New Mexico, the average driver pays $1,388 for full coverage insurance. In most cases, drivers in New Mexico pay less for car insurance compared to the average American.
What happens if you get caught without insurance in New Mexico?
Driving without car insurance is illegal in New Mexico. If you are caught driving without insurance, your car’s registration and license plates will be suspended, which means you cannot legally operate your vehicle. If you fail to surrender your registration and license plates to the New Mexico DMV, you may face criminal charges. Your license plates and registration will be reinstated once you submit proof of insurance.
Bankrate utilizes Quadrant Information Services to analyze 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 cleaning 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 sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.