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Cheapest car insurance in New Mexico for 2022

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New Mexico drivers pay an average of $385 per year for minimum coverage car insurance and $1,419 per year for full coverage, both of which are below the national average. If you are looking for the cheapest car insurance in New Mexico, you may want to get quotes from USAA, Geico, State Farm, Farmers and Progressive.

Although finding cheap car insurance in New Mexico could be a priority, you should not skimp on coverage. A car accident occurs every 11 minutes in New Mexico, based on crash data from 2019. Car insurance is legally required in New Mexico, but beyond that, it is an important consideration to protect your financial health. Bankrate’s research may be able to help you find car insurance in New Mexico that fits your budget and protects your finances from the aftermath of car accidents.

The cheapest car insurance in New Mexico

In the search for the cheapest auto insurance in New Mexico, Bankrate’s insurance editorial team first worked with Quadrant Information Services to obtain current premium information for the largest insurance companies in the Land of Enchantment. However, the price of New Mexico car insurance is not the only consideration when you are looking for coverage. We also reviewed each company’s available coverages, discounts, policy features and third-party rankings.

If you are looking for the cheapest car insurance in New Mexico, but do not want to sacrifice solid coverage, these companies might be worth considering:

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
USAA $270 $1,102
Geico $348 $1,463
State Farm $354 $1,396
Farmers $389 $1,278
Progressive $448 $1,310


If you are a current member of the military, a veteran or an immediate family member, you might want to start your New Mexico car insurance search with USAA. The company is well known for its exceptional customer service, receiving high scores from J.D. Power, despite being ineligible for official ranking due to its eligibility restrictions. The cheap average minimum coverage and full coverage rates are further complemented by USAA’s military-focused discounts, like savings for storing your vehicle while you are deployed and for garaging your car on a military base.

Learn more: USAA Insurance review


If you do not qualify for USAA but are looking for the cheapest policy possible, Geico could be a good fit. Customers may enjoy the company’s low rates as well as its extensive list of discounts offered, including savings for federal employees, good students and safe drivers. With only a few optional coverages available, Geico’s policies do not offer much room for personalization, but if you need basic coverage at a low price, it might be worth getting a quote.

Learn more: Geico Insurance review

State Farm

As the largest personal auto insurer in the U.S., State Farm has established a track record for quality coverage and service. State Farm might be appealing if you like working with local agents at brick-and-mortar offices for your insurance needs. The company is known for rewarding safe drivers as well, with two safe driving programs. Drive Safe & Save is designed for adults, while Steer Clear is geared toward drivers under 25. Both programs might save you money while helping you or your young driver learn safer driving skills.

Learn more: State Farm Insurance review


Farmers’ minimum coverage might be slightly higher than New Mexico’s average, but its full coverage is quite a bit cheaper. You may want to consider a quote from Farmers if you are looking for a highly personalizable policy with numerous optional coverages. To round out your coverage, you could consider adding car rental reimbursement, towing and roadside assistance, ridesharing coverage, guaranteed value coverage or customized equipment coverage.

Learn more: Farmers Insurance review


Although its minimum coverage premium is the highest on our list, you might want to take the time to get a quote from Progressive. If you like to handle your insurance needs online, you might earn extra savings from Progressive. You might qualify for a discount if you get your quote online, purchase your policy online and sign up for paperless statements. Additional savings opportunities include being a homeowner (even if you do not insure your home with Progressive), paying in full and signing up for the Snapshot driver program.

Learn more: Progressive Insurance review

Minimum coverage requirements for New Mexico drivers

Car insurance is legally required in New Mexico, as it is in most states. To drive legally in New Mexico, you must carry at least the following minimum limits:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability to others

New Mexico car insurance companies are also required to offer you uninsured motorist coverage and underinsured motorist coverage in the same limits as your liability coverage, but you do have the option to reject these coverages in writing. However, over 21% of New Mexico drivers are estimated to be uninsured, so accepting these coverages could help spare you financial hardship if you are hit but an uninsured or underinsured driver.

Drivers looking for a cheap car insurance policy will often pay the lowest rate if they buy minimum coverage insurance. If you cause an accident, your insurance can step in to help pay, but because minimum limits are relatively low, you are exposed to the risk of having hefty out-of-pocket expenses if you cause a serious accident.

Minimum limits also do not provide you any coverage for damage to your own vehicle. For that, you need full coverage, which adds comprehensive and collision. If you financed your vehicle, your lender will likely require full coverage.

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 you might want to consider doing to find a competitively priced policy:

  • Shop around: Different companies have different rating systems, so you will often get different quotes for the same coverages. Getting quotes from several companies might help you find the coverage you need for a lower price.
  • Utilize discounts: Most companies offer at least a few discounts that could lower your premium. Buying your home, condo or renters insurance from the same company as your auto policy is often one of the biggest discounts. Other common savings include telematics programs, vehicle safety discounts and teen driver discounts.
  • Drive safely: Tickets, DUI convictions and auto insurance claims tend to make insurance companies view you as a high-risk driver, meaning you will likely pay more for insurance. Maintaining defensive driving habits and keeping a clean driving record could shield you from rate increases.
  • Increase your deductibles: If you have full coverage, your comprehensive and collision coverages both have deductibles. Your deductible is the amount you will pay out of pocket if you file a claim for damage to your vehicle. Increasing one or both of your deductibles will typically lower your premium, but be sure to choose an amount that will not negatively impact your finances if you file a claim.

Car insurance in New Mexico is lower on average than it is nationally. But with a little research, a few quotes and knowledge of how to lower your premium, you might find coverage at an even better price.

Frequently asked questions

What is the best car insurance in New Mexico?

The best New Mexico car insurance company will vary based on each driver’s individual needs, wants and rating factors. Making a list of what you are looking for — like the lowest price, certain coverages, a mobile app or highly-rated customer service — and then getting quotes from several providers might help you find the right option for you.

What is the average cost of car insurance in the U.S.?

In the United States, the average driver pays $1,674 per year for a full coverage insurance policy. In New Mexico, the average annual full coverage premium is $1,419. On average, drivers in New Mexico pay less for car insurance compared to the average American. However, when it comes to the percentage of annual income spent on car insurance, New Mexico drivers pay a bit more. Drivers in the U.S. as a whole spend about 2.44% of their income on auto insurance, while drivers in New Mexico spend about 2.67% of their annual income on car insurance.

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, you could face fines, license suspension and criminal charges. If you cause an accident without insurance, you will be responsible for paying for the damages and injuries out of pocket. If you are unable to pay, you could face a lawsuit.


Bankrate utilizes Quadrant Information Services to analyze 2022 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.

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

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by
Insurance Editor