The best, cheapest car insurance in New Mexico for 2025

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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

Company Group	NAIC	J.D. Power	AM Best Rating	Score (out of 5)
State Farm	0.79	646	A++	4.69
GEICO	0.69	618	A++	4.49
Progressive	0.71	614	A+	4.24
Nationwide	0.63	618	A	4.17
Allstate	1.1	633	A+	3.44
Farmers	0.86	599	A	3.12
USAA*	1.18	733	A++	4.50

*USAA is only available to military community members and their families.

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/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 is the cheapest option for car insurance in New Mexico.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age and 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 numbers highlight these differences. Kemper Insurance is the most expensive insurer in New Mexico with an average premium of $3,268 a year.

On the other hand, as mentioned above, the average premium for GEICO policyholders in New Mexico is $1,406 a year. Progressive had the second cheapest coverage in New Mexico at $1,557 and State Farm rounded out the top three cheapest at $1,669.

Below is a list of the cheapest full-coverage car insurance rates in New Mexico for a 40-year-old driver of a 2023 Honda Accord LX.

Cheapest full-coverage insurance in New Mexico

Company	Average annual premium	Average monthly premium
GEICO	$1,406	$117
Progressive	$1,557	$130
State Farm	$1,669	$139
Nationwide	$1,806	$151
Farmers	$2,740	$228
Allstate	$2,834	$236
Kemper Insurance	$3,268	$272

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Car insurance rates in New Mexico by city

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Full coverage car insurance in New Mexico

As noted, the rates above are for full coverage car insurance. Full coverage car insurance simply means you are carrying liability and any other state requirements as well as collision and comprehensive.

Full coverage insurance includes collision and comprehensive, which protects your own vehicle. Collision insurance will pay to repair your vehicle when it is damaged after colliding with another vehicle or object. Comprehensive covers damage that is done by perils such as fire, theft, flooding, vandalism, and more.

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

Insurance companies consider your age when setting a premium and teens and young adults pay more for coverage as statistics show that young drivers, because they are inexperienced, have more accidents and claims.

Regardless of your age, in New Mexico, GEICO is the most affordable coverage with an average rate of $1,406 a year.

As teens transition into young adults and get more experience under their belt rates start to drop. By their mid to late-20s – assuming they keep their record clean – driver rates should stabilize and then stay stable until the driver moves into their 70s when rates will start climbing again.

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

Company	Average annual premium	Average monthly premium
GEICO	$1,418	$118
Progressive	$1,583	$132
State Farm	$1,604	$134
Nationwide	$1,699	$142
Farmers	$2,809	$234
Allstate	$2,905	$242
Kemper Insurance	$3,230	$269

Car insurance for young drivers in New Mexico

While young adults pay less than teen drivers, they still pay more than older more experienced drivers. The best choice for young adults (early 20s) in New Mexico is GEICO with an annual rate of $2,149 or $179 a month.

Progressive had the second cheapest premium at $2,424 a year followed by State Farm was third at $2,706.

If young drivers keep their driving record clean, their rates will drop down as they move out of their 20s.

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

Average rates for young drivers in New Mexico

Company	Average annual premium	Average monthly premium
GEICO	$2,149	$179
Progressive	$2,424	$202
State Farm	$2,706	$226
Nationwide	$2,846	$237
Allstate	$4,431	$369
Farmers	$4,808	$401
Kemper Insurance	$5,245	$437

Car insurance for teen drivers in New Mexico

Adding a teen to a car insurance policy will always push up the rate. Teens are the least experienced drivers out on the road which leads to more accidents and claims and higher premiums.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

For New Mexico teens, GEICO is the most affordable option with a premium of $4,148 a year or $346 a month. State Farm is the next most affordable at $4,581 a year or $382 a month followed by Nationwide running $5,782 a year.

If your teen has a B average or better, ask for a good student discount to help save a bit of money. Having your teen drive an older vehicle will also help save some money. If the car is old enough that you wouldn’t repair it after an accident, you may be able to drop collision and comprehensive.

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

Average rates for teens in New Mexico

Company	Average annual premium	Average monthly premium
GEICO	$4,148	$346
State Farm	$4,581	$382
Nationwide	$5,782	$482
Progressive	$5,946	$496
Allstate	$9,248	$771
Farmers	$11,666	$972
Kemper Insurance	$12,003	$1,000

Average cost of car insurance in New Mexico

The average cost of car insurance in New Mexico is $2,049, which makes it the 14^th most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“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,” says Gao.

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.

Average rates for a 40-year-old in New Mexico

Average annual premium	Average monthly premium
$2,049	$171

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

Where your vehicle spends its days and nights will impact your rate. Frequent severe weather or a high crime rate will raise the cost of insurance for everyone in the area.

Our data shows that Kirtland Air Force Base is the most expensive area for coverage with an average premium of $2,332 a year.

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

Most expensive ZIP codes in New Mexico

City	Average annual Premium
Kirtland Air Force Base	$2,332
South Valley	$2,332
Monument	$2,269
Los Lunas	$2,252
Lovington	$2,249
Carlsbad	$2,244
Albuquerque	$2,231
Peralta	$2,224
Los Ojos	$2,216
Maljamar	$2,212

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

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in New Mexico is in Alamogordo with an annual premium of $1,742.

Least expensive ZIP codes in New Mexico

City	Average annual Premium
Alamogordo	$1,742
Hurley	$1,789
Santa Clara	$1,790
Tularosa	$1,792
Buckhorn	$1,792
Bayard	$1,793
Silver City	$1,801
Arenas Valley	$1,813
Hanover	$1,816
Deming	$1,820

Cheapest car insurance for high-risk drivers in New Mexico

If you have an incident on your driving record, you may be considered a high-risk driver, and you will pay more for coverage. A speeding ticket, at-fault accident, or DUI can send your premium skyrocketing.

When we ran the numbers, we found that a speeding ticket in New Mexico will push the average rate to $2,104 and an at-fault accident will push it to $2,507.

An accident will stay on your record for at least three years so you will be paying a higher premium for quite a while after an accident.

A DUI will usually result in a massive increase and could push your premium into unaffordable territory. If you are convicted of a DUI, your rate on average will climb to $2,828 a year. A DUI will be reported to insurers for three years, and if you are a commercial driver, it stays on your record for 55 years.

The table below shows the average increase for drivers with various incidents on their record:

How much rates increase in New Mexico after a traffic incident

Profile Groups	Average annual premium	Rates after Incident	Rates increase after incident ($)	Rates increase after incident (%)
At-Fault Accident	$1,695	$2,507	$812	48%
Bad Credit	$1,695	$2,516	$821	48%
DUI	$1,695	$2,828	$1,132	67%
Speeding	$1,695	$2,104	$409	24%

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.

Mark Vallet

Contributing Researcher

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.