Car insurance rates divide New Mexico as neatly as desert and mountains do. The high country pays the most, but even in the more costly cities and towns, the difference as you compare insurance companies can be hundreds or even thousands of dollars. Find your ZIP on the New Mexico map below. Choose from six age groups and three coverage levels to get the average car insurance rate for your neighborhood.


New Mexico Car Insurance Rates by ZIP Code

Coverage Types
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State Minimum: Required liability coverage to drive legally in your state; some states mandate additional coverage, such as personal injury protection, uninsured motorist, underinsured motorist. Liability Only 50/100/50: $50,000 per person/$100,000 maximum per accident for bodily injury; $50,000 for property damage. Liability pays for injuries/damage you cause others. Full Coverage 100/300/100: $100,000 per person/$300,000 maximum per accident for bodily injury; $100,000 for property damage; comprehensive and collision coverage with $500 deductible. Liability pays for injuries/damage you cause others. Comprehensive and collision pay for damage to your car.
87105, Albuquerque,  For 30 Year Old  Male  (Type:  Liability - Minimum )
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30 Seconds Summary
  • The average car insurance cost in New Mexico is $133 per month or $1,604 a year for a full coverage policy.
  • Geico & State Farm have the cheapest auto insurance in New Mexico for state minimum policy.
  • In New Mexico, you can expect your rate to go up by an average of 166 percent when adding a driver age 16 to your coverage.
  • New Mexico ranks 39th among the worst states for drivers with bad credit.

Cheap car insurance in New Mexico

New Mexico car insurance requirements

Minimum CoverageMinimum Limit
Minimum bodily injury liability$25,000/$50,000
Minimum property damage liability$10,000

The cheapest car insurance may not provide sufficient protection, so how much insurance should you buy? Bare-bones coverage may be a good choice if you have few assets or have an old car and don’t drive much. But if you have a home and investments, consider buying more insurance. If you don’t, you’re at risk for having your money and house taken to cover the cost of an accident. If you financed your car you will be required to get additional comprehensive and collision coverage.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.


We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you’re leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and comprehensive

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and for damages from vandalism, flooding, hail, fire and animal strikes. If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

For drivers in New Mexico , collision costs an average of $456 yearly, comprehensive is $203, according to rate data. If you buy comp and collision, check our guide to choosing a deductible amount.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, up to $25,000. In most states, including Texas, it’s an optional addition to your car insurance policy. MedPay does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

  • Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.
  • Do have health insurance, it’s still a good idea to have medical coverage if you want the best protection in your policy, as it can pay out after your health benefits are maxed out.

Gap insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.

Coverage limitsAverage annual rate
Liability Only – state minimum$424
Liability Only – 50/100/50 BI/PD$445
Full Coverage – 100/300/100 BI/PD $500 Comp/Collision deductible$1,253

**The table shows the average annual rate of nearly every ZIP code in New Mexico from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for by Quadrant Information Services.

Cheapest car insurance in New Mexico by company

Below you’ll see average annual rates for New Mexico , ranked cheapest to most expensive, for three coverage levels:

  • State minimum liability requirements
  • Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
  • Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible

CompanyState minimum average annual rate50/100/50 average annual rate100/300/100 average annual rate
Allstate Fire & Cas Ins Co$684$700$1,948
Farmers Ins Co Of AZ$387$410$1,251
Geico Gen Ins Co$273$263$894
Progressive Direct Ins Co$431$444$998
State Farm Mut Auto Ins Co$347$408$1,177

Low cost auto insurance for New Mexico drivers with recent accidents

Filing an accident claim means you are likely to pay more for your car insurance coverage. However, how much more you pay depends on several factors, and your car insurance company plays is one of those significant factors. Each company assesses risk differently, so that’s why the increase after an accident will vary among insurers. Here is how major carriers compare after at-fault accidents for the average New Mexico driver with a full coverage policy:

Company1 At-fault property damage accident over $2K2 At-fault property damage accident over $2kAt-fault bodily injury accident
Allied AMCO$2,818$3,862$2,818
Allstate F&C$2,813$4,024$2,813
Farmers Ins Co of AZ$1,762$2,052$1,762
GEICO General$1,628$3,370$1,628
Progressive Direct$1,245$3,076$1,245
Progressive Northern$1,650$4,168$1,650
State Farm Mutual Auto$1,050$1,590$1,257

*The table shows the average annual rate of nearly every ZIP code in New Mexico from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for by Quadrant Information Services.

Who has the cheapest New Mexico car insurance for drivers with speeding tickets?

If you get a speeding ticket, chances are you’ll see an increase in what you pay for car insurance, upon your policy renewal. Typically, you’ll pay more for three years. But even with a traffic ticket, comparison shopping can save you money. For instance, you’ll see that the difference between the highest rate and the lowest in the table below is more than $1,575, on average, according to’s rate analysis. That’s how much you can save by comparing car insurance companies.

CompanyAverage Rate
State Farm Mutual Auto$1,050
GEICO General$1,244
Progressive Direct$1,603
Farmers Ins Co of AZ$1,780
Allied AMCO$1,961
Progressive Northern$2,205
Allstate F&C$2,625

How much does it cost to add a teen to your policy in New Mexico ?

No matter where you live, adding a new driver to your family policy will hike your rate significantly. In New Mexico , you can expect your rate to go up by an average of 166 percent when adding a driver age 16 to your coverage, according to rate data. You’ll see in the table below how much it costs, on average, to add a teen driver in New Mexico ,and how major insurers compare on price. State Farm Mutual Auto had the lowest auto insurance cost for adding a driver age 16 to a full coverage family policy, among insurers surveyed.

CompanyAverage RateAverage Rate after adding female teen$ Increase (female)Average Rate after adding male teen$ Increase (male)
Allied AMCO$1,591$3,098$1,507$3,635$2,045
Allstate F&C$2,375$5,546$3,172$6,044$3,670
Farmers Ins Co of AZ$1,439$3,360$1,921$3,361$1,922
GEICO General$1,244$2,684$1,440$3,294$2,050
Progressive Direct$1,183$2,952$1,769$3,321$2,138
Progressive Northern$1,602$4,270$2,668$4,904$3,302
State Farm Mutual Auto$1,050$2,685$1,635$3,378$2,328

Cheapest New Mexico auto insurance for young drivers: Ages 18 to 25

Enter an age from 18 to 25 to see who has the best rates for young drivers in New Mexico , by company.

You’ll see in the chart below which car insurance companies have the lowest rates for young drivers buying a full coverage policy. Average car insurance rates by age data shows that drivers typically pay higher rates until age 26, when rates begin to drop as drivers gain more experience on the road. But even young drivers can save money by comparing car insurance rates to see which company has the lowest rates, by qualifying for student discounts and by staying on their parents’ policy as long as possible.

Senior drivers: Cheap auto insurance for New Mexico drivers age 65 to 85

Below you can see average rates by company for drivers age 65 and over, buying a full coverage policy. While comparing car insurance quotes is always one of the primary ways to save on coverage, you can also see if you qualify for a mature driver discount or if you can trim rates by taking a defensive driving course.

Car insurance for New Mexico drivers with bad credit

Car insurance for drivers with bad credit costs significantly more than it does for those with good credit. New Mexico ranks 39th  among the worst states for drivers with bad credit, as’s data analysis shows. Compared to good credit drivers, those in New Mexico with bad credit pay 60 percent more, on average. The good news is that you can still shave some money off your coverage costs if you compare car insurance companies. You’ll see below that the difference among major insurers is nearly $1,389 for a full coverage policy for a driver with bad credit. That’s how much you can potentially save by comparing car insurance quotes.

CompanyPoor credit
Progressive Direct$1,853
State Farm Mutual Auto$1,992
GEICO General$2,306
Allied AMCO$2,357
Progressive Northern$2,464
Farmers Ins Co of AZ$2,612
Allstate F&C$3,243

Best car insurance companies in New Mexico

Scores are based on’s “Best Insurance Companies” customer review survey of 3,700 customers. Policyholders ranked insurers on claims handling, customer service, value, mobile apps/website usefulness and were asked if they would renew their coverage and if they would recommend the company. All scores are out of 100.

2Liberty Mutual90.49
4Auto Club of Southern California (Auto Club Enterprise Insurance Group)88.18
5American Family87.76
7The General86.39
9State Farm86.16
12CSAA Insurance Group84.12


Largest car insurance companies in New Mexico

RankCompanyPremiums WrittenMarket Share
1State Farm Group277,87820.04%
2Berkshire Hathaway Insurance Group207,10514.94%
3Progressive Insurance Group160,61911.58%
4Farmers Insurance Group155,04911.18%
5USAA Group127,9709.23%
6Allstate Insurance Group97,6107.04%
7Liberty Mutual Insurance Companies69,0484.98%
8Travelers Group13,6050.98%
9Nationwide Group11,4790.83%
10American Family Insurance Group1,9030.14%

Source: A.M. Best; State/Line (P/C Lines)  – P/C, US; Data as of:November 28, 2018

New Mexico Car Insurance Laws

RoadsNumber of Fatal Accidents

New Mexico requires motorists to liability insurance of just $25,000 per person and $50,000 per accident for bodily injury and $10,000 for property damage. If you own a home or have substantial savings, those amounts are too low. Even a minor fender-bender can rack up $10,000 in damage to a newer car.

Uninsured/underinsured motorist bodily injury coverage is offered together in New Mexico, along with uninsured motorist property damage (UMPD). All of these coverages must be offered to you, though you can reject them.

But with the high number of uninsured drivers, an estimated 26 percent, according to the Insurance Research Council, keeping uninsured motorist coverage on your policy is a smart idea unless you have health insurance that you know will cover you for injuries sustained in an auto accident.

Collision coverage is usually a better buy if you want to have your car repairs covered — because it covers the damage even when you’re at fault.

Uninsured penalties: As far as penalties go for driving without insurance, New Mexico’s aren’t very severe, which may account for why there are so many drivers doing it. If the Motor Vehicle Division (MVD) finds that your registered car isn’t in compliance with the state’s financial responsibility law, it will suspend your vehicle’s registration and registration of your vehicle(s) will be denied until insurance is obtained. Driving without insurance is a misdemeanor, and you can receive a fine of up to $300.

Storing your vehicle: If you put a vehicle in storage or take it off the road to be restored, you must submit an Affidavit of Non-Use with the New Mexico Insurance Identification Database (IIDB). Your registration will then be noted as “unknown” for insurance purposes and you won’t incur any penalties for the vehicle being uninsured – as long as you don’t drive on the road.

Average annual car insurance rates for major cities in New Mexico

Below you’ll see how average annual rates for several of the largest cities in the state compare to state and national averages. Rates are for coverage of $100,000 per person/$300,000 per accident in liability and $50,000 of property damage coverage, with comprehensive and collision carrying a $500 deductible.

Show Tabular Data
CityAverage Premium
Las Cruces$1,308
Rio Rancho$1,596
Santa Fe$1,512
New Mexico$1,521

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Michelle Megna
Editorial Director

Michelle is a writer, editor and expert on car insurance and personal finance. Prior to joining, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News.