Best Car Insurance in New Mexico: Car insurance is a must-have for any driver in New Mexico, and finding the best coverage at the right price can feel like a big task.
But don’t worry, this guide will take you through everything you need to know about getting the best car insurance in the Land of Enchantment.
Whether you’re a new driver or just looking to switch providers, understanding how to compare quotes, what coverage you need, and where to get the best deals is crucial. Let’s dive in.
Understanding Car Insurance Requirements in New Mexico
Before you start shopping for car insurance, it’s important to understand the state’s minimum requirements. New Mexico requires all drivers to carry a certain level of liability insurance. This includes:
- Bodily Injury Liability: $25,000 per person, $50,000 per accident.
- Property Damage Liability: $10,000 per accident.
These coverages protect you if you’re at fault in an accident, covering the other party’s medical expenses and property damage. Failing to have insurance in New Mexico can result in fines, suspension of your license, and even impounding your vehicle.
Why You Need Car Insurance in New Mexico
Aside from meeting legal requirements, car insurance provides critical financial protection. New Mexico roads, especially in urban areas like Albuquerque, can be dangerous due to traffic, and in more rural areas, wildlife collisions can be a real hazard. Without insurance, a serious accident could leave you facing thousands of dollars in medical bills or car repairs. It’s not just about staying legal—it’s about having peace of mind.
Types of Car Insurance Coverage Available in New Mexico
There are several types of car insurance coverage you can consider when buying a policy:
- Liability Coverage: Covers damages or injuries you cause to others in an accident.
- Collision Coverage: Pays for repairs to your car after an accident, regardless of fault.
- Comprehensive Coverage: Protects your vehicle from non-collision damage, such as theft or natural disasters.
- Personal Injury Protection (PIP): Covers medical expenses for you and your passengers.
- Uninsured/Underinsured Motorist Coverage: Protects you if you’re in an accident with a driver who has little or no insurance.
Understanding these coverage options allows you to make informed decisions about what you need based on your driving habits and risks.
How Car Insurance Premiums are Calculated in New Mexico
Car insurance premiums vary widely based on several factors. In New Mexico, some of the biggest factors include:
- Driving Record: Tickets and accidents can significantly increase your rates.
- Age and Gender: Younger drivers, particularly males under 25, often pay more.
- Type of Vehicle: Expensive cars cost more to insure, as do models that are frequently stolen.
- Credit Score: In New Mexico, insurers can use your credit score to help set your premium.
- Location: Urban areas like Albuquerque have higher rates than rural parts of the state due to traffic congestion and accident rates.
Top Car Insurance Providers in New Mexico
Several major insurance companies offer competitive car insurance rates in New Mexico. These include:
- State Farm: Known for its excellent customer service and competitive rates.
- GEICO: Offers affordable rates, especially for drivers with clean records.
- Progressive: Popular for its discount programs and online quote tool.
- Farmers Insurance: Provides a wide range of coverage options and discounts.
- USAA: Best for military families, offering some of the lowest rates in the industry.
Each of these companies has strengths, whether it’s customer service, affordable premiums, or comprehensive coverage options. It’s essential to compare quotes from these providers to find the best deal for your situation.
Cheapest car insurance companies in New Mexico
| Company | Avg. Annual Premium |
|---|---|
| USAA | $1,164 |
| State Farm | $1,223 |
| GEICO | $1,249 |
| Nationwide | $1,379 |
| Farmers | $1,796 |
| Progressive | $2,009 |
| Allstate | $2,704 |
New Mexico auto insurance laws
Car insurance is mandatory in almost every state, including New Mexico. If you choose the legal minimum coverage level in New Mexico, expect to pay an average of $459 annually.
State minimum coverage
In order to drive legally in the state of New Mexico, you must carry at least the minimum liability limits listed below:
- Bodily Injury $25,000 per person
- Bodily Injury $50,000 per accident
- Property Damage $10,000 per accident
Optional coverage in New Mexico (varies by carrier):
- Comprehensive
- Collision
- Loan/Lease Payoff
- Medical Payments
- Rental Car Reimbursement
- Roadside Assistance
- Uninsured/Underinsured Motorist Bodily Injury
- Uninsured Motorist Property Damage
If you opt for better coverage, you can choose a policy with comprehensive and collision, which will protect against the costs of car accidents, theft, vandalism, or weather incidents. But better coverage comes with a cost: in New Mexico, a comprehensive insurance policy with a $1,000 deductible costs $1,212, 154% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay 213% more than you would for basic coverage.
New Mexico car insurance premiums by rating factor
Your rates are determined by a number of individual factors, including your coverage level, driving history, location, and more. Explore average premium costs by rating factor below to get a better sense of how much you should be paying for auto insurance in New Mexico.
Cheap auto insurance in New Mexico for minimum coverage
Drivers who choose the minimum amount of coverage required by the state of New Mexico can expect to pay an average of around $23 per month. However, with this rock bottom price comes a tradeoff: both you and your vehicle would be at risk of being underinsured. Still, if minimum coverage is what you’re after, check out the rates from popular carriers below.
New Mexico Minimum Coverage
| Company | Avg. Annual Premium |
|---|---|
| USAA | $272 |
| State Farm | $333 |
| GEICO | $392 |
| Nationwide | $424 |
| Allstate | $579 |
| Progressive | $660 |
| Farmers | $711 |
Cheap auto insurance in New Mexico with bad credit
Your credit history is an important factor in determining your car insurance rates. Many carriers see those with a poor credit score as being higher risk, meaning you could pay more for your policy. On average, New Mexico drivers with poor credit pay around $2,199 for coverage, 80% more per year than those with exceptional credit. Have a look at some common rates by credit tier below.
| Company | Avg. Annual Premium |
|---|---|
| GEICO | $1,666 |
| Nationwide | $1,990 |
| USAA | $2,219 |
| State Farm | $2,398 |
| Farmers | $2,761 |
| Progressive | $2,950 |
| Allstate | $3,398 |
Cheap auto insurance in New Mexico with an at-fault accident
Your driving history plays a big part in how much you pay. Insurance companies look for previous accidents for which you have been at fault to gauge the level of risk you pose as a customer. An at-fault accident in recent years could see your car insurance rates increase by as much as 43%.
Safe driver discounts
In addition to having a cheaper premium, some companies offer a safe driving discount. While the amount varies based on your company, it can range between 5 and 10%.
New Mexico At Fault Car Insurance
| Company | Avg. Annual Premium |
|---|---|
| State Farm | $1,472 |
| USAA | $1,683 |
| GEICO | $2,006 |
| Nationwide | $2,063 |
| Farmers | $2,477 |
| Progressive | $3,049 |
| Allstate | $3,400 |
Cheap auto insurance for young drivers in New Mexico
Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In New Mexico, teen drivers pay especially high rates: $4,551 per year — more than $3,000 more than the nationwide average and 231% more than a typical New Mexico driver.
NEW MEXICO AUTO INSURANCE RATES FOR TEENS
| Company | Avg. Annual Premium |
|---|---|
| GEICO | $3,317 |
| USAA | $3,349 |
| State Farm | $3,898 |
| Nationwide | $4,225 |
| Allstate | $7,328 |
| Progressive | $7,482 |
| Farmers | $7,955 |
New Mexico auto insurance rate by violation
In New Mexico, a bad driving record will cause your rates to skyrocket. If you receive a ticket or citation, your auto insurance premiums will probably rise. By how much depends on the violation, your insurer’s pricing standards, and differing local insurance regulations and risks. That’s why tickets may have a different impact on insurance in your state compared to the national average.
See below average auto insurance rates in New Mexico after a few common citations.
New Mexico car insurance rates by violation
| Accident/Violation | Avg. Annual Premium | % Rate Increase | $ Rate Increase |
|---|---|---|---|
| None | $1,628 | 0% | $0 |
| One Med/PIP claim | $1,642 | 1% | $15 |
| One comp claim | $1,695 | 4% | $67 |
| Not-at-fault accident | $1,705 | 5% | $77 |
| Two Med/PIP claims | $1,736 | 7% | $108 |
| Two comp claims | $1,789 | 10% | $161 |
| Failure to show documents | $1,811 | 11% | $183 |
| Failure to wear a seat belt | $1,823 | 12% | $195 |
| Driving without lights | $1,824 | 12% | $196 |
| Child safety restraint | $1,871 | 15% | $243 |
| Driving with expired registration | $1,889 | 16% | $261 |
| In 65 MPH zone | $1,914 | 18% | $286 |
| Cell phone violation | $1,929 | 19% | $301 |
| Texting while driving | $1,929 | 19% | $301 |
| Speeding 6 – 10 MPH over limit | $1,944 | 19% | $316 |
| Speeding 11 – 15 MPH over limit | $1,944 | 19% | $316 |
| Speeding 16 – 20 MPH over limit | $1,944 | 19% | $316 |
| Driving too slowly | $1,951 | 20% | $323 |
| Speeding in school zone | $1,951 | 20% | $323 |
| Wrong way/wrong lane | $1,952 | 20% | $324 |
| At-fault accident – less than $1000 | $1,955 | 20% | $327 |
| Improper passing | $1,963 | 21% | $335 |
| Failure to stop at a red light | $1,963 | 21% | $335 |
| Failure to yield | $1,963 | 21% | $335 |
| Following too closely | $1,963 | 21% | $335 |
| Illegal turn | $1,963 | 21% | $335 |
| Operating a vehicle without permission | $1,984 | 22% | $356 |
| Passing school bus | $1,986 | 22% | $358 |
| Speeding 21 – 25 MPH over limit | $2,021 | 24% | $394 |
| Open container | $2,138 | 31% | $511 |
| At-fault accident – $1000-$2000 | $2,279 | 40% | $652 |
| At-fault accident – greater than $2000 | $2,297 | 41% | $669 |
| Reckless driving | $2,944 | 81% | $1,317 |
| Driving with a suspended license | $2,947 | 81% | $1,320 |
| Refusal to submit to a chemical test | $2,981 | 83% | $1,353 |
| DUI | $3,104 | 91% | $1,477 |
| Racing | $3,192 | 96% | $1,564 |
| Leaving scene of an accident/hit and run | $3,215 | 98% | $1,587 |
New Mexico DUI laws
In New Mexico, a DUI offense can increase your annual car insurance premium by an average of 91%. That’s almost $1,500 dollars more per year than the state average. Finding affordable auto insurance in the wake of a DUI violation isn’t simple. In fact, a DUI often brings about a bigger premium increase than any single road violation — more than an at-fault accident, racing, or reckless driving.
Low-cost car insurance after a DUI in New Mexico
If you’re convicted of a DUI or DWI violation in New Mexico, it’s key to mull over each of your insurance choices carefully. Auto insurance premiums following a DUI can vary substantially by insurer. For example, the least expensive car insurance company with a DUI in New Mexico, State Farm’s annual rates are significantly less than the statewide average insurance rate with a DUI, coming in a full 48% lower. The second-cheapest insurer for auto insurance after a DUI in New Mexico is Progressive, while the priciest firm is Allstate, with prices 9% above average.
There is no car insurer in particular that offers cheap DUI car insurance. The recommended way to save in the wake of a DUI citation is to shop around.
New Mexico SR-22 insurance
An SR-22 is a routine legal requirement triggered by a violation such as a DUI conviction, a ticket for driving without insurance, an at-fault collision, driving with a suspended license, or accumulating too many points on your license. It is not a type of insurance policy, but a form issued by your insurance company to ensure that you remain insured. Most states require an SR-22, but New Mexico is one exception. The state of New Mexico does not require you to file an SR-22 in order to apply for insurance.
If you move from a state that requires an SR-22 to a state that does not, you will typically still need to follow the requirements of the state that first required you to file an SR-22.
Rates by city
Car insurance companies calculate your rate based on many factors, the location of the vehicle being an important one. Among New Mexico’s largest cities, the cheapest car insurance is found in Las Cruces, New Mexico, and the most expensive in Albuquerque, New Mexico.
Have a look at the table below to see average car insurance costs in some of New Mexico’s other biggest cities.
New Mexico car insurance rates by city
| City | Avg. Annual Premium |
|---|---|
| Las Cruces | $1,474 |
| Roswell | $1,635 |
| Santa Fe | $1,680 |
| Rio Rancho | $1,748 |
| Albuquerque | $1,891 |
Car insurance price trends in New Mexico
In New Mexico, average annual auto insurance costs increased by $101 in the past year. A typical New Mexico driver pays an average of $1,375 per year.
The recent pricing trend in New Mexico leans toward slightly pricier car insurance costs but remains lower than the national average. The steepest decrease occurred from 2017 to 2018, while the highest surge took place from 2016 to 2017. At the same time, car insurance rates across the United States have stayed relatively steady in the past few years, moving from $1,521 in 2018 to $1,529 in 2021.
NEW MEXICO CAR INSURANCE RATE TRENDS
| Year | Avg. Annual Premium — New Mexico | Yearly Change — New Mexico | Avg. Annual Premium — US | Yearly Change — US |
|---|---|---|---|---|
| 2021 | $1,375 | $101 | $1,529 | $46 |
| 2020 | $1,274 | -$83 | $1,483 | -$61 |
| 2019 | $1,357 | -$39 | $1,544 | $23 |
| 2018 | $1,396 | -$400 | $1,521 | $84 |
| 2017 | $1,796 | $234 | $1,437 | $69 |
| 2016 | $1,562 | -$323 | $1,368 | $88 |
| 2015 | $1,885 | $216 | $1,280 | $51 |
| 2014 | $1,669 | $155 | $1,229 | $34 |
| 2013 | $1,514 | -$63 | $1,195 | -$80 |
| 2012 | $1,577 | $323 | $1,276 | $82 |
Comparing Insurance Quotes in New Mexico
When looking for the best car insurance, it’s vital to compare multiple quotes. Each company uses its own formula to calculate premiums, so shopping around can save you hundreds of dollars per year. Many companies offer free online quotes, or you can work with an insurance broker to get quotes from several providers at once.
When comparing quotes, don’t just focus on price. Look at the coverage limits, deductibles, and customer reviews to ensure you’re getting the best overall value.
Discounts to Look for When Shopping for Car Insurance in New Mexico
Most car insurance companies offer a range of discounts that can help lower your premium. Some common ones to keep an eye out for include:
- Safe Driver Discounts: If you have a clean driving record, you’re likely to qualify.
- Multi-Car Discounts: Insure more than one car with the same provider for a lower rate.
- Good Student Discounts: Many insurers offer discounts for young drivers who maintain a high GPA.
- Low-Mileage Discounts: If you don’t drive often, you may qualify for a lower rate.
How to Get the Best Car Insurance Rate in New Mexico
To get the best car insurance rate, follow these tips:
- Shop Around: Compare quotes from multiple providers.
- Maintain a Good Driving Record: The fewer accidents and tickets you have, the lower your rates will be.
- Bundle Policies: Many insurers offer discounts if you bundle auto insurance with home or renter’s insurance.
- Take Advantage of Discounts: Always ask about available discounts, and see if you qualify.
What to Do After Getting a Car Insurance Quote
Once you’ve received quotes, carefully review each policy. Pay attention to:
- Deductibles: Higher deductibles lower your premium but increase your out-of-pocket costs in an accident.
- Coverage Limits: Ensure you have enough coverage for your specific needs.
- Policy Terms: Look for any exclusions or limitations in your policy.
If something isn’t clear, don’t hesitate to ask your insurance agent for clarification.
How to File a Claim in New Mexico
If you’re involved in an accident, follow these steps to file a claim:
- Report the Accident: Contact your insurance company as soon as possible.
- Document the Incident: Take photos and gather witness statements if necessary.
- Get an Estimate: Your insurer will likely require a damage estimate before processing your claim.
- Follow Up: Stay in touch with your insurer to ensure the claim is processed in a timely manner.
The Role of New Mexico’s Department of Insurance
The New Mexico Department of Insurance regulates the industry and ensures that consumers are protected. If you encounter issues with your insurance company, you can file a complaint with the department. They also provide resources for understanding insurance laws and regulations in the state.
The Importance of Customer Service and Claims Satisfaction
Choosing an insurer with excellent customer service is crucial. You don’t want to be stuck waiting for a claims adjuster after an accident. Always check customer satisfaction ratings and reviews when selecting an insurance provider. The last thing you want is to struggle with poor service when you’re already stressed after an accident.
Legal Considerations for Car Insurance in New Mexico
New Mexico follows an at-fault system, meaning the driver responsible for the accident must cover the damages. The state also has time limits (statutes of limitations) for filing claims after an accident, typically within three years for personal injury claims and four years for property damage.
FAQs about Car Insurance in New Mexico
1. What are the minimum car insurance requirements in New Mexico?
In New Mexico, the minimum car insurance coverage required by law includes:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $10,000 for property damage per accident
These limits ensure that drivers have financial protection in the event of an accident. However, many experts recommend higher coverage limits for better protection.
2. How much does car insurance cost in New Mexico?
The cost of car insurance in New Mexico varies based on several factors like age, driving history, type of vehicle, and the coverage chosen. On average, drivers in New Mexico pay around $1,300 per year for full coverage. Those opting for minimum coverage can expect to pay less, approximately $450-$600 annually.
3. Is New Mexico a no-fault state for car insurance?
No, New Mexico is not a no-fault state. It follows a tort system, meaning the driver who is at fault in an accident is responsible for the damages. The at-fault driver’s insurance typically covers the costs for injuries and property damage.
4. Can I get car insurance with a suspended license in New Mexico?
No, you cannot legally obtain car insurance with a suspended license in New Mexico. Before purchasing car insurance, you must first get your license reinstated. In some cases, you may need to file an SR-22 form with the state to prove that you have the necessary liability coverage before reinstating your license.
5. What happens if I drive without car insurance in New Mexico?
Driving without car insurance in New Mexico is illegal and can result in severe penalties. If caught, you may face:
- Fines ranging from $300 to $1,000
- Suspension of your driver’s license and vehicle registration
- Additional fees to reinstate your driving privileges
- Potential jail time in extreme cases
It’s important to maintain the minimum required insurance to avoid these consequences.
6. What types of additional coverage are available in New Mexico?
In addition to the required liability coverage, New Mexico drivers can purchase several optional coverage types for enhanced protection:
- Collision Coverage: Pays for damages to your vehicle in the event of a collision, regardless of fault.
- Comprehensive Coverage: Covers non-collision-related damage, such as theft, vandalism, or natural disasters.
- Uninsured/Underinsured Motorist Coverage: Provides protection if you’re involved in an accident with an uninsured or underinsured driver.
- Medical Payments Coverage (MedPay): Covers medical expenses for you and your passengers, regardless of fault.
7. How can I lower my car insurance rates in New Mexico?
There are several ways to lower your car insurance premiums in New Mexico:
- Shop around for quotes from different providers to find the best deal.
- Bundle your policies, such as home and auto insurance, with the same insurer.
- Maintain a clean driving record with no accidents or traffic violations.
- Consider raising your deductibles if you can afford to pay more out-of-pocket in the event of a claim.
- Look for discounts for safe driving, anti-theft devices, or completing defensive driving courses.
By following these tips, you can potentially save hundreds on your car insurance annually.
8. Can I get car insurance if I don’t own a car in New Mexico?
Yes, you can purchase non-owner car insurance in New Mexico. This type of policy provides liability coverage for individuals who frequently drive vehicles they do not own, such as rental cars or borrowed vehicles. Non-owner insurance is an excellent option for people who need coverage but do not own a car.
9. What factors affect car insurance rates in New Mexico?
Several factors influence the cost of your car insurance in New Mexico, including:
- Age and gender: Younger drivers, particularly teens, typically pay higher premiums.
- Driving record: A clean driving history leads to lower rates, while accidents and violations increase costs.
- Type of vehicle: Expensive cars or those prone to theft may come with higher premiums.
- Location: Urban areas with higher traffic and crime rates often have more expensive insurance rates than rural areas.
- Credit score: Insurers in New Mexico can use your credit score to determine your premium, with better scores often leading to lower rates.
10. Do I need car insurance if I don’t drive my car in New Mexico?
Even if you’re not currently driving your car, maintaining insurance is still necessary if the vehicle is registered in New Mexico. If you plan to store your vehicle for an extended period, consider reducing your coverage to comprehensive-only insurance, which protects against theft, vandalism, and natural disasters without covering driving-related accidents.
Conclusion
Securing car insurance in New Mexico offers numerous benefits, from protecting your financial well-being to ensuring you’re covered in case of unexpected events. By having the right coverage, you can drive with peace of mind, knowing you’re shielded from liability, accidents, and damage costs. Whether you’re a new driver or looking to switch providers, getting car insurance is a smart move for safeguarding both your vehicle and your future.
Don’t wait—get your free quote today! Click here to explore affordable options and find the best coverage tailored to your needs. Or, contact a trusted insurance provider for personalized assistance in securing the right policy.
References
For additional insights and in-depth understanding of car insurance in New Mexico, here are some reputable sources that provide further reading and validation of the information:
- New Mexico Office of Superintendent of Insurance
The official regulatory body for insurance in New Mexico offers detailed guidelines, legal frameworks, and consumer information. Visit their website to explore resources on car insurance requirements, regulations, and consumer protection policies.
New Mexico OSI - Insurance Information Institute (III)
A trusted source for insurance education, the III provides valuable data and tips on car insurance, including rates, policy types, and factors that affect premiums in New Mexico.
Insurance Information Institute - Consumer Reports – Auto Insurance
Offering unbiased reviews and comparisons, Consumer Reports helps consumers find the best auto insurance deals by analyzing rates, customer service, and policy coverage. Their state-specific recommendations can be helpful when shopping for car insurance in New Mexico.
Consumer Reports Auto Insurance - New Mexico Motor Vehicle Division (MVD)
For vehicle registration and insurance requirements, the New Mexico MVD provides essential resources for drivers. It’s crucial to ensure your insurance meets the state’s minimum coverage guidelines, and the MVD can offer clarity on that.
New Mexico MVD
These sources offer authoritative information, helping you stay informed and compliant with New Mexico’s car insurance laws while ensuring you get the best coverage possible.
