Best car insurance in New Mexico for 2021

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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 2020 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.

J.D. Power Rating BBB Rating AM Best Rating
Allstate 830 A+ A+
American Family 834 A A
Geico 834 A+ A++
Safeco 810 A+ A
State Farm 826 A+ A++

Allstate

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.

American Family

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.

Geico

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.

Safeco

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.

State Farm

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.

Average car insurance cost in New Mexico

The average annual cost of car insurance in New Mexico is $1,388 for full coverage and $337 for minimum coverage. Drivers in New Mexico pay nearly $400 less per year than the national annual average of $1,738 for full coverage.

Average Annual Premium for Minimum Coverage in New Mexico Average Annual Premium for Full Coverage in New Mexico
$337 $1,388

State minimum insurance requirements in New Mexico

In New Mexico, motorists are required to obtain a minimum level of liability auto insurance before getting behind the wheel. New Mexico’s minimum liability levels are:

  • $25,000 for bodily injury each person
  • $50,000 for bodily injury per accident
  • $10,000 for property damage 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, many people choose higher coverage limits and additional coverage options so they are better protected from the expense of damages caused by an at-fault 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’ll 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’ll 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 individual needs

Consider your circumstances by being honest about your past driving and claims history, credit score, budget and more. These are all things that affect how high or low your car insurance premium may be.

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. If you are looking to add a young driver in the future, you will want to look for insurance companies that offer discounts for youthful drivers.

Consider state factors

Your ZIP code is just as important when evaluating your needs for car insurance and when comparing auto insurance companies in New Mexico. Local agents are available from each insurance company to help you find the best coverage and options for your needs based on your location. 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. Additionally, according to the Insurance Information Institute, New Mexico ranks third in the nation for the number of uninsured drivers as of 2015. 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. Take a look at a few of the different discount options available:

Allstate offers discounted rates for:

  • Cars with anti-lock brakes or anti-theft devices installed
  • People who also buy Allstate’s homeowners or renter’s insurance
  • Students who maintain good grades

American Family customers who may benefit from discounts include:

  • Children of parents who are insured by American Family
  • Early birds who signed up within seven days of requesting an insurance quote
  • People who leave competitors to sign up for American Family

Safeco features discounts designed for:

  • People who are not frequent drivers
  • Safe drivers who use the Safeco’s monitoring system
  • People who also sign up for home policies through Safeco

Frequently asked questions

What is the best car insurance in New Mexico?

The best car insurance company is going to vary depending on the individual applying. For many drivers, Geico may be a fantastic option. If a driver is an active or former member of the U.S. Military, USAA may be a good choice. Drivers who use their cars for ride sharing may want to consider Safeo. Obtaining a variety of quotes is the best way to find the right company for you.

Why would the best insurance provider for one person not be the best for someone else?

Auto insurance providers vary in their rates, discount offerings, tolerance for high-risk drivers and how they utilize your credit score to rate your policy. Because each driver has a unique set of experiences and needs, auto insurance companies evaluate potential policies on a case-by-case basis. Getting multiple quotes can help you compare companies to find the right fit for your needs.

What information is needed to get car insurance in New Mexico?

To get car insurance in New Mexico, people will need proof that they are a licensed driver in the state and that they own the vehicle they are seeking to insure. Be sure to have your car’s vehicle identification number (VIN) on hand, as well as the dates of birth and license numbers for each driver in your household.

Methodology

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 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 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.