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Best car insurance in New Mexico for 2022
The average cost of car insurance in New Mexico is $1,419, according to Bankrate’s 2021 study of quoted annual premiums. The “Land of Enchantment” features some of the oldest byways in the nation. Historic Route 66 runs east to west through the center of New Mexico and has carried motorists to their destinations for nearly a century. Recent decades have seen the number of drivers in New Mexico rise as the state grows in popularity. In 2017, the Bureau of Transportation Statistics counted 1.5 million licensed drivers in the state, a 7.9% increase from the number counted in 2007.
New Mexico is a unique region with a culture all its own and plenty of different auto insurers to choose from. Finding the right fit can be a daunting task in any state, and there are a few things to consider before shopping around for a reliable New Mexico auto insurer:
- What is the driver’s history behind the wheel? Motorists with at-fault accidents on their records might be best served by a different insurance company than drivers with no accidents.
- What type of coverage is needed? People with auto loans usually need different coverages than those who have paid off their vehicles.
- What information is required for coverage? Have the vehicle’s mileage handy, as well as the VIN and license plate numbers, before speaking with a local insurance dealer.
Best car insurance companies in New Mexico
Every year, J.D. Power releases a study that looks at the finest auto insurers on the market. The 2021 J.D. Power U.S. Auto Insurance Study shows which auto insurance providers rise to the top of the industry to become the best in the Southwest. We also included ratings from AM Best and the Better Business Bureau to help determine the top insurance companies.
Discover the best carrier for you
Safeco gives its members access to a variety of coverage options, such as ride-sharing insurance for professional drivers and selective accident forgiveness to reward good driving records. Founded in 1923, Safeco has a long history to help policyholders feel secure in their choice of provider.
Learn More: Safeco Insurance Review
Geico is one of the best options for affordable auto insurance and is a great starting point for first-time car owners. Geico also allows different kinds of insurance plans to be bundled together for even more savings and offers a wide range of discounts. Geico has options to insure high-risk drivers as well, so if you have accidents on your record, you may want to consider a quote from Geico.
Learn More: Geico Insurance Review
State Farm gets a high rating from J.D. Power for good reason. It has a comprehensive set of discounted insurance plans available, including defensive driving course discounts, good student discounts and multiple auto discounts.
Learn More: State Farm Insurance Review
American Family features plans with interesting offerings like discounts to incentivize safe driving and a car adapter that tracks driving for individualized discounts of up to 20%. American Family has an extensive list of discounts for policyholders to peruse. As the ninth-largest auto insurer in the United States, drivers can trust that American Family is a reputable insurance provider.
Learn More: American Family Insurance Review
Allstate has encompassing offerings that will fit the needs of most drivers, including collision coverage for accidents and medical payments coverage for both the driver and the passenger of the vehicle. Allstate also has a range of discounts to provide policyholders with options to lower their savings.
Learn More: Allstate Insurance Review
Average car insurance cost in New Mexico
The average annual cost of car insurance in New Mexico is $1,419 for full coverage and $385 for minimum coverage. Drivers in New Mexico pay nearly $300 less per year than the national annual average of $1,674 for full coverage, which is not very surprising given New Mexico’s more mild climate.
|Average Annual Premium for Minimum Coverage in New Mexico||Average Annual Premium for Full Coverage in New Mexico|
State minimum insurance requirements in New Mexico
- $25,000 for bodily injury liability each person
- $50,000 for bodily injury liability per accident
- $10,000 for property damage liability per accident
Bodily injury refers to anyone who has been injured by the driver in an accident, including pedestrians and other motorists. Property damage refers to any private or public property that has been damaged by a person’s actions while driving. And although liability auto insurance is all that New Mexico requires, it is worth considering higher coverage limits and additional coverage options for extra protection in the event of an accident.
How to get the best car insurance
Shopping around for a car insurance company can be overwhelming due to the number of factors involved. Drivers should compare rates for and consider obtaining full coverage car insurance rather than the minimum coverage. Full coverage can protect you from paying large sums out of pocket in the event that you get into an at-fault accident. With minimum coverage, you are only protected up to the minimum state requirements and any additional expenses from an at-fault accident will have to be covered out of pocket.
You will also want to evaluate your individual needs and consider your geographic location when searching for car insurance. Factors such as whether you will be buying a new vehicle, if you will need to add another driver to your policy in the future, if you have been involved in an accident in the past and your budget are all things that will impact your car insurance choice.
- Evaluate your needs. There are specific rate factors that affect how much you pay for insurance, including your past driving and claims history, credit score, budget and more. For example, if you have a low credit score, you may want to seek out a company that does not use credit scoring to rate your policy. If you have one or more accidents on your driving record, you may want to look for car insurance companies that offer accident forgiveness so that your premiums may not be raised as much if you get into another accident.
- Consider state factors. Your ZIP code is just as important when calculating your car insurance costs. If you are in an area with a high crime rate, for example, you may want to consider adding comprehensive coverage to protect yourself from vandalism and theft. According to the Insurance Information Institute, New Mexico ranks third in the nation for the number of uninsured drivers as of 2015, so discussing uninsured and underinsured motorist coverage with your agent may be prudent.
Car insurance discounts in New Mexico
Discounts on auto insurance rates come in all shapes and sizes. Most companies offer at least a few, but some companies may offer discounts that match up with your needs and lifestyle better than others. To help you find the cheapest car insurance in New Mexico, take a look at a few of the different discount options available:
- Safety discounts: You may be able to save when your car is equipped with extra safety features. This can include having anti-lock brakes or anti-theft devices installed.
- Bundle discounts: There may be extra savings when you purchase more than one policy from the same provider.
- Good grades: Good student discounts are available for full time students who earn a B average or higher. This discount can provide significant premium savings.
- Loyalty discounts: Some providers reward you for using the same provider as other family members. If your parents have a policy with certain companies like American Family, you could receive extra discounts off your policy.
You may also be able to save money when you drive less than the average driver. Some companies like Safeco will offer low-mileage discounts to reward those who spend less time behind the wheel. There are also telematics-based discounts, like State Farm’s Drive Safe and Save, which reward your safe driving with lower premiums.
Frequently asked questions
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.
These are sample rates and should only be used for comparative purposes.
Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.