Best Car Insurance in New Mexico 2021
Are you searching for the best car insurance in New Mexico?
New Mexico, located in the Southwest region, is the Land of Enchantment with a population of around 2 million people. If you live there and need to know the cheapest New Mexico auto insurance you can buy, you have come to the right place.
Our guide will help you make the best decision and help you find an auto insurance provider that meets both your budget and your needs. Also, make sure to take a look at our list of best car insurance providers to help you make a sound decision.
Let’s get started!
What Are the State’s Minimum Requirements?
You need to know the New Mexico auto insurance requirements before you shop for auto insurance in NM.
The minimum required car insurance in New Mexico includes:
- Bodily Injury Liability Insurance Coverage for each person and each auto accident: $25,000
- Property Damage Insurance Coverage for each auto accident: $10,000
According to the auto liability insurance policy in New Mexico, you need to get a 25/50/10 level of auto insurance coverage. It is recommended that you buy more auto insurance coverage because auto accidents can be costly. For example, a few years back, the average auto insurance claim for bodily injuries was $15,270.
In this article, we will discuss in detail the benefits of getting insurance as well as provide you with a list of the cheapest auto insurance in New Mexico.
Here is a list of the must-have insurance in New Mexico:
- Comprehensive Coverage finances you if you are met with an accident caused by another car or object such as a guardrail, tree, or mailbox. Additionally, it covers damage due to floods, fires, earthquakes, vandalism, and fallen trees.
- Uninsured Motorist Coverage includes property damage and bodily injury insurance coverage.
- Property Damage covers repairs in the event your car is hit by a person without auto insurance. Bodily injury pays your medical expenses in the event the person who hit your car and caused you injuries has insufficient auto insurance.
Here is the breakdown of mandatory insurance in New Mexico:
- $25,000 for death or bodily injury to one person involved in an auto accident
- $50,000 for death or bodily injury of two or more people involved in an auto accident
- $10,000 for damage of the property of another person in the event of an auto accident
Did you know that New Mexico is in third place in the U. S. for the state with the most uninsured/underinsured drivers? — 2.8% of auto drivers in the state are uninsured.
Although getting UM/UMI coverage isn’t mandatory, you should have minimum liability insurance of $25,000 as per the state. We recommend that you buy at least $100,000 in UM/UMI as the minimum amount can be used up fast.
Is New Mexico a no-fault state?
New Mexico is recognized as an “at-fault” state, which means the at-fault driver is responsible for all damages, including any expense incurred by the at-fault driver and repair and medical costs sustained by the other driver.
What are the minimum requirements if you finance your car through a bank in New Mexico?
If you lease or finance your car through a bank, you aren’t allowed by the lender to only carry minimum auto insurance coverage. You need to obtain full auto insurance coverage until the remainder of your contract and you pay off the bank and own the vehicle. If you fail to purchase full auto coverage, the bank reserves the right to buy an auto insurance plan for you and bill you.
We have calculated the average cost of auto insurance in New Mexico. Please refer to the two tables below to get the answer to what is the average cost of car insurance in New Mexico.
|State Average Costs by Age Per Year|
|Age Group||Average Price|
|20-30||$6,860 to $1,294|
|30-40||$1,294 to $1,262|
|40-50||$1,262 to $1,188|
|50-60||$1,188 to $1,222|
|State Average Costs by Gender Per Year|
|Average Price for Men||Average Price for Women|
In New Mexico, auto insurance coverage is high for drivers in their 20s. This is because they may have just received their license, are new drivers, or are prone to accidents due to their age. With age, the auto insurance coverage rate declines.
People in their 30s and 40s will qualify for a reduced premium, but after they reach their 50s and 60s, the auto insurance coverage will increase, as auto insurance providers consider older drivers as high-risk.
In terms of gender, men tend to pay more for auto insurance coverage than women due to men deemed as high-risk drivers. However, the difference is only $4.
|Cost of Car Insurance by Top Cities|
|City||Average Rate Per Year|
Car insurance quotes in New Mexico differ from city to city. Since Albuquerque is the largest city in New Mexico, finding cheap car insurance in Albuquerque will be difficult. You can expect to pay $2,584 each year, which is more than the state’s yearly average of $2,194.
If you live in Las Cruces, you’ll pay less for auto insurance than New Mexico’s yearly average, paying $2,027 per year. You save $483 each year on car insurance in Las Cruces.
The car insurance costs in Rio Rancho are high, averaging at $2,396 per year. That’s 9% higher than New Mexico’s average.
Car insurance in Santa Fe, New Mexico costs on average $2,228 per year for complete coverage, hence making it 2% higher than New Mexico’s average.
You want to look for cheap car insurance in New Mexico. For that, you need to know the cheapest insurance providers in the state.
The following auto insurance companies offer cheap car insurance in New Mexico (rates per year):
- Progressive ($21)
- State Farm ($39)
- Allstate ($80)
- GEICO ($82)
Cheap New Mexico car insurance rate per year for drivers with a DUI:
- State Farm ($504)
- Farm Bureau Financial Services ($639)
- Progressive ($754)
- Allstate ($878)
- GEICO ($945)
Cheap New Mexico auto insurance after driving violations such as a ticket (rate per year):
- GEICO ($1,139)
- State Farm ($1,146)
- Farm Bureau Financial Services ($1,635)
- Allstate ($1,931)
- Progressive ($1,958)
Cheap auto insurance for young drivers (rate per year):
- State Farm ($1,227)
- GEICO ($1,269)
- Farm Bureau Financial Services ($1,621)
- Progressive ($1,668)
- Allstate ($1,862)
Cheap auto insurance for families with a student driver (rate per year):
- Progressive ($2,765)
- State Farm ($3,012)
- Farm Bureau Financial Services ($3,076)
- GEICO ($3,100)
- Allstate ($5,338)
Cheap auto insurance for people with poor credit score (rate per year):
- GEICO ($1,679)
- StateFarm ($2,056)
- Progressive ($2,091)
- Farm Bureau Financial Services ($2,215)
- Allstate ($2,258)
Cheap auto insurance for people with good credit score (rate per year):
- GEICO ($1,061)
- State Farm ($1,069)
- Progressive ($1,450)
- Farm Bureau Financial Services ($1,493)
- Allstate ($1,735)
Cheapest auto insurance for families (rate per year):
- Progressive ($1,661)
- State Farm ($1,831)
- GEICO ($1,994)
- Allstate ($2,399)
- Farm Bureau Financial Services ($2,479)
New Mexico Auto Insurance, Traffic Rules, and Penalties
You need to understand the New Mexico car insurance laws, including traffic rules and penalties to be able to choose the right insurance.
The punishments for not having the state minimum insurance according to the New Mexico auto insurance laws include:
- Fines up to $300
- Imprisonment up to 90 days
- Potential suspension of vehicle registration
The New Mexico car insurance requirements for new residents are:
- Current driver’s license
- Proof of identity (passport or birth certificate)
- Proof of identification number (your original Social Security Card)
- Proof of Residency (current address in the state and two items with your name)
- None for the Road program at home for people aged 18 to 24 years old
*Note: New residents in New Mexico need to know that the state takes DUI/DWIs extremely seriously. Any resident between 18 to 24 years old needs to complete the state’s None for the Road program at home before they can obtain their driver’s license. You’ll get a temporary driver’s license with a permanent license delivered by mail within 10 to 40 days.
The Traffic Rules Violations and Punishments in New Mexico
The country follows a point system for tracking the good driving habits of drivers. If you commit a traffic violation, you will get the point added to your New Mexico driving record. If you violate speeding fines and speed limit, it will cause the following consequences:
- 6 points on your record within one year leads to a Warning Letter
- 7 to 10 points on your record within one year leads to a Three Month Driver’s License Suspension
- 12 points or more on your record leads to a One Year Driver’s License Suspension
New Mexico can suspend or revoke your driver’s license for one of the following reasons:
- DUI of alcohol or drugs
- Driving above the speed limit by 26 miles per hour or more
- Reckless driving
- Leaving the scene of an auto accident that resulted in death or injury
- Driving with an invalid driving license
The penalties for drivers under 18
If a driver doesn’t have their license but has a provisional license or an instruction permit, they’ll face the consequences for breaking the law. Violating the restrictions that come with the provisional license or instruction permit can cause their driving privileges to be canceled.
Best Car Insurance Companies in New Mexico
The best auto insurance companies in New Mexico are GEICO (best for drivers under 25), State Farm (best for drivers with an imperfect driving record and low annual mileage), and State Farm (best for low annual mileage).
|Company||Best For||Car Insurance Market Share||AM Best Ratings||Rates Per Year|
|State Farm||Low annual mileage and imperfect driving record||20.04%||A++||$2,340|
|GEICO||Drivers under 25||14.94%||A++||$4,457|
|Farm Bureau||Members||7.14 %||$1,193|
|Progressive||Drivers with low credit score||11.58%||A+||$3,118|
|Liberty Mutual||Drivers with a good driving record||4.98%||A||$2,109|
When it comes to New Mexico car insurance, there are several different types of auto insurance companies to choose from. To help you decide between the different insurance companies offering auto insurance in New Mexico, we have created a detailed review of each popular auto insurance provider in the state. Use our guide to choose a company providing cheap auto insurance for New Mexico residents.
State Farm provides drivers with basic and supplemental insurance coverage. Out of all the coverage options, the company’s rental car reimbursement insurance coverage stands out. This is one of the reasons why they are regarded as offering the best car insurance in New Mexico.
Rental car reimbursement insurance coverage reimburses for car rental, meals, transportation, and lodging in the event your car breaks down when you are over 50 miles from home. If you need car insurance in Santa Fe New Mexico, at the best rate, go with State Farm, as the average quote they offer is $57 each month.
GEICO auto insurance New Mexico holds a strong financial strength rating. BBB rated the company A+ and AM Best gives it an A++ rating. If you want cheap car insurance in New Mexico, GEICO provides low-cost coverage plans.
You can choose from several discounts such as a multiple policy discount, good student discount, military discount, good driver discount, multiple vehicle discount, federal employee discount, and defensive driving discount. For instance, the GEICO rate for auto insurance in Albuquerque, New Mexico is $941 each year.
Farm Bureau Financial Services is one of the best auto insurance companies in the U.S. Auto insurance provides drivers with collision and comprehensive coverage for various vehicles, ranging from cars, motorcycles, sportbikes, touring bikes, three-wheelers, cruisers, and more.
If you are a member, you will receive discounts. You can choose from two add-on coverage, such as replacement cost and roadside assistance coverage. Some impressive discounts they offer include claim-free, affinity group, anti-theft, multi-car, member’s choice, and more.
Allstate auto insurance in New Mexico is more costly than other auto insurance providers on this list. They offer the best car insurance for seniors in New Mexico. If you take advantage of their many discounts, you can get reduced New Mexico car insurance quotes.
You can choose from a wide range of discounts such as a pay-in-full discount, safe driving discount, good student discount, multi-car policy discount, multi-car discount, anti-theft device discount, automatic payment discount, early signing discount, and more.
Progressive auto insurance New Mexico is an excellent option for drivers who don’t meet the requirements of State Farm and USAA. The auto insurance provider markets itself as offering affordable auto insurance in New Mexico.
The drawback to choosing them is a limited offer of discounts compared to other auto insurance providers, especially State Farm. State Farm offers auto insurance in Santa Fe, New Mexico, and other cities.
USAA is rated as the best New Mexico auto insurance for overall experience and claims by J.D. Power. The company’s standard insurance options include underinsured and uninsured motorist coverage.
Their standard insurance plan includes coverage options that other companies charge extra for, such as rental reimbursement. You can also choose separate coverage options such as roadside assistance and accident forgiveness.
Liberty Mutual offers affordable New Mexico car insurance rates. They provide drivers with a wide range of discounts such as violation-free, accident-free, early shopper, military, good student, student away at school, alternative energy, multi-vehicle, payment by bank, multi-policy, and more.
Farmers has some of the best car insurance options in New Mexico. The auto insurance provider forgives one auto accident after every three years you go without having one. They also offer accident forgiveness, which means your premiums won’t increase due to a citation, given you haven’t filed a claim against your policy.
Pros & Cons
Who has the cheapest auto insurance in New Mexico?
In New Mexico, Progressive offers drivers the cheapest auto insurance. Drivers need to pay $21 on average each month.
Is New Mexico a “no-fault” state?
New Mexico is an “at-fault” state. The at-fault driver will cover all the damages. It includes all costs sustained by the at-fault driver and the repair and medical expenses the other driver incurred.
What are the best auto insurance companies in New Mexico?
The best auto insurance companies in New Mexico are GEICO (best for drivers under 25), State Farm (best for drivers with an imperfect driving record), and USAA (best for military).
What is the mandatory insurance law in New Mexico?
New Mexico’s mandatory insurance law requires drivers to have minimum liability insurance. Minimum liability insurance is:
- $25,000 for death or bodily injury to one person due to an auto accident
- $50,000 for death or bodily injury to two or more people due to an auto accident
- $10,000 for injury to or property of another individual due to an auto accident
What are Car Insurance Discounts Available in New Mexico?
The most common car insurance discounts available in New Mexico include bundled policies, early renewal, multi-vehicle, good student, accident-free, good driver, and usage and low mileage discounts. You can check with the auto insurance provider on the various discounts they offer.
Is SR-22 Required in New Mexico?
SR-22 is a car liability insurance document for drivers with high-risk auto insurance plans. New Mexico doesn’t require drivers to obtain an SR-22 for a DUI offense.