Cheapest Car Insurance in New Mexico (2024)
State Farm has the cheapest car insurance in New Mexico for most drivers, with rates averaging $33 a month for liability coverage and $108 for full coverage.
Progressive is New Mexico’s best source of cheap car insurance for drivers with a conviction for DUI (driving under the influence), as well as those with bad credit.
| Coverage/driver type | Cheapest company | Average annual rate |
|---|---|---|
| Full coverage | State Farm | $1,294 |
| Liability coverage | State Farm | $393 |
| Young driver (full coverage) | State Farm | $3,716 |
| Speeding ticket | State Farm | $1,387 |
| Accident | State Farm | $1,490 |
| DUI | Progressive | $1,847 |
| Poor credit | Progressive | $2,325 |
Cheapest full-coverage car insurance in New Mexico: State Farm
State Farm offers the cheapest full-coverage car insurance in New Mexico, charging an average rate of $1,294 a year, or $108 a month.
USAA has an even cheaper average rate, $955 a year ($80 a month) — however, only members of the military and their families qualify.
| Company | Average annual rate |
|---|---|
| State Farm | $1,294 |
| Progressive | $1,558 |
| Geico | $2,068 |
| Allstate | $2,400 |
| Farm Bureau | $2,599 |
| Farmers | $2,797 |
| USAA* | $955 |
A full-coverage car insurance policy usually combines liability, comprehensive and collision coverages. This means that it’ll pay for damage to your vehicle and your own injuries, as well as injuries and damage that you cause to others.
A great way to get the best car insurance in New Mexico for your situation is to compare car insurance quotes from several companies while you shop around.
Cheapest New Mexico liability-only coverage: State Farm
State Farm also has the cheapest car insurance for New Mexico drivers who only want liability coverage, at $393 a year, or $33 a month.
Farm Bureau and Progressive also offer affordable rates for liability car insurance coverage, at $435 and $566 a year, respectively.
| Company | Average annual rate |
|---|---|
| State Farm | $393 |
| Farm Bureau | $435 |
| Progressive | $566 |
| Geico | $816 |
| Farmers | $868 |
| Allstate | $1,105 |
| USAA* | $238 |
State law requires you to have at least a minimum amount of liability car insurance, which protects you if you cause injuries to others in a car accident. It also pays for damage you may cause to another person’s car or property. However, it won’t cover your own injuries or damage to your own car.
Cheapest rates for young drivers in New Mexico: State Farm
State Farm, Farm Bureau and Progressive have the cheapest car insurance for young drivers in New Mexico.
State Farm offers the cheapest rates overall, at an average of $1,353 a year for liability coverage and $3,716 a year for full coverage.
But if you or your family have military ties, make sure you get a quote from USAA. Its average rates are around half of State Farm’s, at $611 a year for liability coverage and $2,040 a year for full coverage.
Cheapest car insurance for teen drivers (annual rates)
| Company | Liability average rate | Full coverage average rate |
|---|---|---|
| State Farm | $1,353 | $3,716 |
| Farm Bureau | $1,445 | $4,081 |
| Progressive | $1,489 | $5,046 |
| Geico | $2,100 | $5,293 |
| Allstate | $3,280 | $7,543 |
| Farmers | $3,893 | $10,746 |
| USAA* | $611 | $2,040 |
On average, car insurance rates for teen and other young drivers in New Mexico are about three times higher than they are for drivers who are older and have more experience on the road.
Car insurance companies charge young drivers such high rates because they tend to get into more accidents than older drivers do. That said, the good news is that car insurance rates go down as you age — especially after the age of 25.
To get your best and most affordable insurance rate as a young driver before you turn 25, have a parent add you to their policy, if you can.
Cheapest rates after a speeding ticket in New Mexico: State Farm
State Farm is the best source of cheap auto insurance for New Mexico drivers with a speeding ticket or similar traffic violation on their records, charging an average rate of $1,387 a year, or $116 a month.
Progressive, Geico and Allstate are also worth a look if you can’t find a quote you can afford from State Farm.
| Company | Average annual rate |
|---|---|
| State Farm | $1,387 |
| Progressive | $2,229 |
| Geico | $2,563 |
| Allstate | $2,675 |
| Farm Bureau | $2,915 |
| Farmers | $3,815 |
| USAA* | $1,186 |
Drivers in New Mexico pay 23% higher car insurance rates after a speeding ticket, on average. State Farm’s average rate for a driver with a ticket is only 7% higher than what it charges a driver with a clean record.
Cheapest rates after an accident in New Mexico: State Farm
New Mexico drivers who want cheap car insurance after an accident should start by getting a quote from State Farm, which offers an average rate of $1,490 a year, or $124 a month.
The average driver in New Mexico pays 45% more for car insurance after an at-fault accident.
| Company | Average annual rate |
|---|---|
| State Farm | $1,490 |
| Progressive | $2,247 |
| Farm Bureau | $3,533 |
| Allstate | $3,649 |
| Geico | $3,657 |
| Farmers | $3,860 |
| USAA* | $1,378 |
Best rates after a DUI in New Mexico: Progressive
Progressive has New Mexico’s cheapest car insurance after a DUI, with rates that average $1,847 a year, or $154 a month.
The average cost of car insurance after a DUI in New Mexico is $3,220 a year, or $268 a month. This is 65% higher than what the average driver with a clean record pays.
| Company | Average annual rate |
|---|---|
| Progressive | $1,847 |
| State Farm | $3,006 |
| Allstate | $3,293 |
| Farmers | $3,716 |
| Geico | $4,210 |
| Farm Bureau | $4,584 |
| USAA* | $1,883 |
Best New Mexico rates for bad credit: Progressive
Progressive charges the cheapest auto insurance rates for drivers with bad credit in New Mexico, at $2,325 a year, or $194 a month, on average.
The average cost of car insurance for New Mexico drivers with bad credit is $3,374 a year, or $281 a month. That’s 73% more than what drivers with good credit pay for a policy.
| Company | Average annual rate |
|---|---|
| Progressive | $2,325 |
| Geico | $3,052 |
| Allstate | $3,428 |
| Farm Bureau | $3,783 |
| Farmers | $4,367 |
| State Farm | $5,000 |
| USAA* | $1,663 |
New Mexico insurance rates by city
Silver City has the cheapest average car insurance rate of New Mexico’s largest cities, at $1,673 a year, or $139 a month.
Deming and Alamogordo are right behind Silver City in terms of affordable car insurance in New Mexico at $1,674 and $1,679 a year, respectively.
Albuquerque and neighboring North and South Valley have the state’s most expensive car insurance rates. South Valley’s average rate is the highest of the three, at $2,410 a year.
| City | Average annual rate |
|---|---|
| Alamogordo | $1,679 |
| Albuquerque | $2,321 |
| Artesia | $1,961 |
| Bernalillo | $2,157 |
| Carlsbad | $2,070 |
| Chaparral | $1,894 |
| Clovis | $1,946 |
| Deming | $1,674 |
| Española | $2,012 |
| Farmington | $1,733 |
| Gallup | $1,793 |
| Hobbs | $2,032 |
| Las Cruces | $1,829 |
| Las Vegas | $1,987 |
| Los Alamos | $1,826 |
| Los Lunas | $2,210 |
| Lovington | $2,075 |
| North Valley | $2,264 |
| Portales | $1,879 |
| Rio Rancho | $2,138 |
| Roswell | $1,976 |
| Santa Fe | $1,977 |
| Silver City | $1,673 |
| South Valley | $2,410 |
| Sunland Park | $1,911 |
Car insurance companies look at many rate factors to set the price of your policy, including where you live. They also consider your:
- Age, gender and marital status
- Vehicle’s make and model
- Driving record
- History of insurance claims
Car insurance laws in New Mexico
New Mexico law requires drivers to prove financial responsibility after an accident. Most drivers do this by buying at least 25/50/10 car insurance.
Minimum coverage for car insurance in New Mexico
| Coverage type | Minimum amount needed |
|---|---|
| Bodily injury (for one person) | $25,000 |
| Bodily injury (for two or more people) | $50,000 |
| Property damage (per accident) | $10,000 |
New Mexico drivers who don’t want to buy car insurance can deposit $60,000 in cash or surety bond with the New Mexico State Treasurer.
The state may suspend your vehicle registration if you don’t have at least 25/50/10 car insurance or otherwise prove financial responsibility.
Methodology
The rates in this article are based on an analysis of auto insurance quotes obtained from Quadrant Information Services for sample drivers from across New Mexico (or the U.S., in the case of national averages).
Unless otherwise noted, our sample driver is a single 30-year-old male who owns a 2015 Honda Civic. Our young base driver is an 18-year-old male with a good driving record.
Minimum-coverage rates reflect the cost of policies meeting the minimum liability limits required by each state.
Full-coverage policies include these coverages, limits and deductibles:
- Bodily injury liability: $50,000 limit per person/$100,000 limit per accident
- Property damage liability: $25,000 limit
- Uninsured motorist: $50,000 per person, $100,000 per accident, where required by law
- Personal injury protection: Minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive: $500 deductible
*USAA is only available to current and former members of the military as well as certain family members.
Frequently asked questions
The average cost of car insurance in New Mexico is $632 a year if you buy just the minimum amount of liability coverage the state requires.
The average cost of full-coverage car insurance in New Mexico is $1,953 a year.
A typical driver in New Mexico pays $53 a month for liability-only car insurance, or $163 a month for a full-coverage policy.
State Farm is the best company for affordable insurance in New Mexico, charging $33 a month for liability coverage and $108 for full coverage, on average.
If you take out a loan to buy your car, you’ll likely need to buy full-coverage car insurance for it. That means you’ll need liability, collision and comprehensive coverages.
If you pay for your new car in cash, you only need to buy liability car insurance for it. But if the car is worth a few thousand dollars or more, you may want to buy collision and comprehensive coverages as well. They’ll help protect you if something damages or destroys your vehicle.