The best, cheapest car insurance in New Mexico

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Best car insurance company in New Mexico

Drivers in New Mexico pay an average of $2,049 a year or $171 a month for car insurance coverage which makes it the 14^th most expensive state in the country.

Even though car insurance is pretty expensive in New Mexico, it’s possible to find affordable coverage with top insurers such as GEICO, Progressive, State Farm, and other insurers.

State Farm is our choice for the best car insurance in New Mexico. It finished first in our rankings with 4.69 out of 5 stars and an average premium of $1,669 a year, or $139 a month, which is $380 less than the state average.

GEICO was second with a score of 4.49 stars followed by Progressive with 4.24 stars.

The best car insurance companies in New Mexico

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in New Mexico

GEICO has the cheapest average rate in the state at $1,406 a year.

While GEICO is the cheapest for many drivers, the perfect insurer for you may be a different company.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age, marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The data clearly shows the range of premiums for similar drivers.

In New Mexico, as mentioned earlier, the cheapest policy is GEICO with an average rate of $1,406 a year. Progressive follows with an average premium of $1,557 a year or $130 a month and State Farm with premiums of $1,669 a year or $139 a month.

Kemper Insurance is the most expensive insurer with an average premium of $3,268.

Make sure you’re taking advantage of all the discounts you qualify for to ensure you’re getting the best possible rate. Ask your agent to review your policy for any available savings you might be missing.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in New Mexico

Full coverage car insurance in New Mexico

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

Shopping for car insurance in New Mexico

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age, income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in New Mexico by age

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

GEICO is the cheapest insurer in New Mexico for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $4,148 which is 193% more expensive than the most affordable coverage for seniors at $1,418 and 93% more than young drivers’ best rate of $2,149.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in New Mexico

Seniors in the state pay more for coverage than all other driver groups, except for teens. GEICO is the most affordable option for seniors with a yearly premium of $1,418 or $118 a month. Progressive was the second cheapest at $1,583 and State Farm rounded out the top three at $1,604.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

The chart below shows the average premium for senior drivers.

Average rates for seniors in New Mexico

Car insurance for young drivers in New Mexico

Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In New Mexico, GEICO is the cheapest option for young adults with a yearly premium of $2,149 or $179 a month.

Progressive is the next most affordable with an average rate of $2,424 followed by State Farm at $2,706.

Young drivers who maintain a clean driving record can expect their rates to drop even more as they reach their late 20s.

The table below shows the best insurers for young drivers in New Mexico:

Average rates for young drivers in New Mexico

Car insurance for teen drivers in New Mexico

Although teen drivers always pay much higher premiums than other driver groups, GEICO offers teens the cheapest rate at $4,148. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

State Farm has the second most affordable premium at $4,581 a year followed by Nationwide at $5,782 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While GEICO was the most affordable at $4,148, Kemper Insurance was the most expensive with an annual premium of $12,003.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

The chart below shows average premiums for teens in New Mexico:

Average rates for teens in New Mexico

Average cost of car insurance in New Mexico

In New Mexico, the average premium is $2,049, which makes New Mexico the 14^th most expensive state for coverage.

All states have large metropolitan areas, which will always push up the cost of insurance as more vehicles on the road lead to more accidents and claims. A high crime rate will also impact rates.

“If a state has a higher rate of car insurance claims associated with vandalism or car theft, prices are usually higher because car insurance companies view insuring these cars as a higher risk for them,” says Chong Gao, director of product management R&D at Mercury Insurance.

The chart below is the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

Which New Mexico ZIP codes are most expensive for car insurance?

Car insurance costs in New Mexico can vary significantly based on your location, as insurers consider the ZIP code where your vehicle is primarily parked when determining your premium.

Our data shows that the Kirtland Air Force Base area came out as the most expensive with an average annual premium of $2,332. South Valley was No. 2 and Monument was No. 3.

Here are the most expensive ZIP codes in New Mexico for car insurance:

Most expensive ZIP codes in New Mexico

Which New Mexico ZIP codes are the cheapest for car insurance?

The cheapest ZIP codes for car insurance in New Mexico tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. Alamogordo has the most affordable ZIP code in New Mexico with an annual premium of $1,742.

Least expensive ZIP codes in New Mexico

Cheapest car insurance for high-risk drivers in New Mexico

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $2,104 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $2,507.

A DUI is considered a major violation and will raise the average premium to $2,828.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in New Mexico after a traffic incident

Minimum car insurance requirements in New Mexico

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. New Mexico requires drivers to carry 25/50/10 in liability coverage, which translates into:

• $25k for bodily injury and $50,000 for death for a person involved in an accident
• $50k for bodily injury and $100,000 for death for two or more people in an accident
• $10k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like New Mexico.”

Explore other insurance options in New-Mexico

Non-owner car insurance in New Mexico

Average renters insurance cost in New Mexico

Average homeowners insurance cost in New Mexico

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.