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
- 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
- Recommended car insurance coverage
- Cheapest car insurance in New Mexico by company
- Low cost auto insurance for New Mexico drivers with recent accidents
- Who has the cheapest New Mexico car insurance for drivers with speeding tickets?
- How much does it cost to add a teen to your policy in New Mexico ?
- Cheapest New Mexico auto insurance for young drivers: Ages 18 to 25
- Senior drivers: Cheap auto insurance for New Mexico drivers age 65 to 85
- Car insurance for New Mexico drivers with bad credit
- Best car insurance companies in New Mexico
- Largest car insurance companies in New Mexico
- New Mexico Car Insurance Laws
- Average annual car insurance rates for major cities in New Mexico
- Guide to car insurance (with rates) in cities of New Mexico
Cheap car insurance in New Mexico
New Mexico car insurance requirements
|Minimum Coverage||Minimum Limit|
|Minimum bodily injury liability||$25,000/$50,000|
|Minimum property damage liability||$10,000|
Recommended car insurance coverage
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 CarInsurance.com 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.
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 limits||Average 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 CarInsurance.com 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
|Company||State minimum average annual rate||50/100/50 average annual rate||100/300/100 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:
|Company||1 At-fault property damage accident over $2K||2 At-fault property damage accident over $2k||At-fault bodily injury accident|
|Farmers Ins Co of AZ||$1,762||$2,052||$1,762|
|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 CarInsurance.com 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 CarInsurance.com’s rate analysis. That’s how much you can save by comparing car insurance companies.
|State Farm Mutual Auto||$1,050|
|Farmers Ins Co of AZ||$1,780|
How much does it cost to add a teen to your policy in New Mexico ?
No matter where you live, adding a new driver to your family policy will hike your rate significantly. In New Mexico , you can expect your rate to go up by an average of 166 percent when adding a driver age 16 to your coverage, according to CarInsurance.com rate data. You’ll see in the table below how much it costs, on average, to add a teen driver in New Mexico ,and how major insurers compare on price. State Farm Mutual Auto had the lowest auto insurance cost for adding a driver age 16 to a full coverage family policy, among insurers surveyed.
|Company||Average Rate||Average Rate after adding female teen||$ Increase (female)||Average Rate after adding male teen||$ Increase (male)|
|Farmers Ins Co of AZ||$1,439||$3,360||$1,921||$3,361||$1,922|
|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 CarInsurance.com’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.
|State Farm Mutual Auto||$1,992|
|Farmers Ins Co of AZ||$2,612|
Best car insurance companies in New Mexico
Scores are based on Insure.com’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.
|4||Auto Club of Southern California (Auto Club Enterprise Insurance Group)||88.18|
|12||CSAA Insurance Group||84.12|
Largest car insurance companies in New Mexico
|Rank||Company||Premiums Written||Market Share|
|1||State Farm Group||277,878||20.04%|
|2||Berkshire Hathaway Insurance Group||207,105||14.94%|
|3||Progressive Insurance Group||160,619||11.58%|
|4||Farmers Insurance Group||155,049||11.18%|
|6||Allstate Insurance Group||97,610||7.04%|
|7||Liberty Mutual Insurance Companies||69,048||4.98%|
|10||American Family Insurance Group||1,903||0.14%|
Source: A.M. Best; State/Line (P/C Lines) – P/C, US; Data as of:November 28, 2018
New Mexico Car Insurance Laws
|Roads||Number 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.