The cost of car insurance in New Mexico varies significantly depending on the type and amount of insurance coverage you buy, your location, age and driving history. Geico offers the cheapest rates at $1,406 a year for full coverage.
This guide makes buying car insurance in New Mexico easy. We’ve done the hard work by researching and analyzing what different drivers might pay for insurance.
Keep reading to learn how auto insurance in New Mexico works and how much insurance you need.
- The average cost of car insurance in New Mexico is $2,049 a year or $171 per month, based on our data analysis.
- Minimum liability coverage in New Mexico costs around $421 annually for limits of 25/50/10, while liability-only coverage costs $658 per year for limits of 50/100/50.
- Geico provides the most affordable annual rates for full coverage car insurance in New Mexico, costing $1,406 per year.
- In New Mexico, driving incidents can significantly increase premiums, with a speeding ticket raising rates by up to 22%, a DUI raising rates by 45%, and an at-fault accident by up to 37%.
How much is car insurance in New Mexico?
According to CarInsurance.com data, drivers in New Mexico pay about $171 per month for full coverage car insurance.
Understanding the average insurance cost can give you a head start in budgeting for your coverage. It’s important to consider that premium costs vary from person to person and will depend largely on the make/model of your car, your driving record and other factors.
See how rates change in New Mexico based on driver profile:
- Teen drivers in New Mexico pay the most — about $529 a month or $6,351 a year.
- Young drivers in their 20s pay an average of $260 monthly or $3,115 annually, for car insurance.
- Senior drivers pay around $170 monthly or $2,044 a year.
- A speeding ticket can increase your rates to $220 monthly or $2,640 annually.
- An at-fault accident increases car insurance rates to $246 a month or $2,950 a year.
- Poor credit drivers usually see their car insurance costs increase to $323 monthly or $3,874 annually.
Average cost of auto insurance in New Mexico by coverage level
Car insurance costs in New Mexico can differ based on the coverage limit. To legally drive, New Mexico residents must adhere to the minimum liability limits of 25/50/10.
Liability-only insurance policies are the most affordable option and provide the minimum coverage required in New Mexico. However, they don’t offer much protection.
While liability insurance protects you from financial loss by covering legal defense and damages if you’re found responsible for causing injury or property damage to others, it doesn’t protect your vehicle or passengers.
On the other hand, full coverage car insurance is more expensive, but it offers extensive protection. It helps cover your vehicle in case of accidents, theft, natural disasters, and animal collisions. Full coverage can make you feel more secure, knowing you’re well-protected if something happens.
Full coverage car insurance comprises liability, comprehensive, collision and any other coverage required by your state.
Below, you will find the rates for car insurance in New Mexico for different coverage levels.
| Coverage Level | Avg. Monthly Cost | Avg. Annual Cost |
|---|---|---|
| State Minimum – Liability Only BI/PD | $35 | $421 |
| Liability Only – 50/100/50 BI/PD | $55 | $658 |
| Full Coverage – 100/300/100 Liability BI/PD with $500 Comp/Coll Deductible | $171 | $2,049 |
State minimum car insurance in New Mexico
In New Mexico, minimum car insurance requirements include $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident and $10,000 of property damage liability.
The state minimum car insurance cost in New Mexico is $421 a year. However, this basic coverage only offers limited protection. New Mexico drivers can choose to add more coverage, such as comprehensive and collision insurance, raise their liability limits and include personal injury protection or other insurance coverage, for better protection.
Drivers in New Mexico must be aware of the minimum insurance coverage requirements to stay compliant.
Liability-only car insurance in New Mexico
The average cost of liability-only insurance in New Mexico is $658 for the coverage limits of 50/100/50, based on a recent data analysis by CarInsurance.com.
This policy covers the cost of damages caused to others but not damages to the policyholder’s vehicle or passengers. While it is less expensive than a full coverage plan, liability-only insurance does not protect against an accident or theft of the insured vehicle.
Full coverage car insurance in New Mexico
On average, premiums for full coverage car insurance in New Mexico cost $2,049 per year for the limits of 100/300/100 – $100,000 in bodily injury coverage, $300,000 in bodily injury coverage per accident and $100,000 in property damage coverage.
Car insurance experts advise drivers to get full coverage insurance with the highest liability limits they can afford. Full coverage includes liability, comprehensive and collision coverage, with a deductible.
Calculate the cost of car insurance in New Mexico
A policy that is perfect for someone living in one ZIP code might be expensive for a driver living in another.
Different areas pose more or less risk based on crime rate, traffic, car thefts and population density. Insurance companies research each area’s risks and then use that information to determine what they can charge for premiums.
As a result, residents in higher-risk neighborhoods in New Mexico pay more for premiums than those in lower-risk areas.
Our tool lets you quickly obtain insurance quotes for different coverage limits specific to your ZIP code within minutes. Input your ZIP code to see how much you can save on premiums.
Calculate car insurance rates by ZIP code in New Mexico
Rates vary by location. Our tool helps you understand how your ZIP code impacts your premium.
For 30 year old Male ( Liability - Minimum)
Estimate car insurance in New Mexico by car model
New Mexico car insurance providers use the make and model of your vehicle to determine premiums. If you drive a luxury car, which can be expensive to repair, expect to pay more for insurance than cars that are easier and cheaper to fix.
For instance, luxury brands like Maserati, BMW, Porsche, and Audi usually have higher insurance costs. Cars like Subaru, Hyundai, Honda and Mazda are often cheaper to insure.
Find out how much you’ll pay for car insurance for your vehicle make and model in New Mexico.
Insurance rates by car model
Guide: How to estimate car insurance using our car insurance estimator tool
Car insurance rates by age group in New Mexico
As you age, the cost of your car insurance might change. As a young driver, you’ll pay more than an experienced, older driver. This is because younger drivers are more prone to accidents. The Insurance Institute for Highway Safety reports that the crash rate for teen drivers is four times higher than for drivers 20 years old or older.
Insurers know that teenage drivers are less experienced and pose a higher risk, resulting in higher insurance premiums. New Mexico drivers between the ages of 30 to 60 typically enjoy the lowest average auto insurance rates, at about $1,990 annually.
Drivers aged 16-19 pay $4,361 more for car insurance than New Mexico drivers aged 30-60 per year.
See the average rates by age group below:
- For teen drivers: Teens aged 16-19 can expect to pay $6,351 per year for a full coverage car insurance policy.
- For young adults: Drivers aged 20-25 can expect to pay $2,982 yearly for a full coverage policy.
- For average-aged adult drivers: Drivers aged 30 to 60 can expect to pay $1,990 annually in New Mexico.
- For senior drivers: Drivers aged 65 and older can expect to pay $2,044 per year.
Check out our detailed guide on average car insurance rates by age
Rates based on driver profile, history and habits in New Mexico
A history of DUI, speeding, or at-fault accidents often results in significant hikes in insurance premiums. In New Mexico, a DUI conviction lead to increased rates and you may see a rate hike of up to 45% as insurers categorize you as a high-risk driver.
Similarly, if you get a speeding ticket in New Mexico, you’ll likely see an increase in your car insurance premium by up to 22% upon your policy renewal. Typically, you’ll pay more for three years. However, your rate increase also depends on state laws, your insurance company and your driving record.
Here’s a breakdown of how much your car insurance rate goes up in New Mexico following driving incidents:
- Speeding ticket: Up to 22% increase
- DUI conviction: 45% increase
- At-fault accident (bodily injury and property damage): 37% increase
Even if you’ve received a traffic ticket, comparing quotes can still help you save money.
Car insurance cost in New Mexico for high-risk drivers
High-risk drivers in New Mexico pay more for car insurance than other drivers because they are considered riskier. Factors like accident history, traffic violations and poor credit scores influence how much the policyholder will pay for insurance coverage.
Luckily, there are ways for high-risk drivers to reduce their premium payments. Shopping around and comparing quotes is a great place to start, as each company will have its own rate structure tailored to individual needs.
Use the tool below to see which company offers cheaper rates for drivers with speeding tickets, DUI convictions and at-fault accidents.
Select your state and risk factor below to see the insurance company and its average annual full coverage rates.
Learn more: The 10 most important factors that affect car insurance rates
Explore car insurance costs in your neighboring states
Compare car insurance quotes in New Mexico
In New Mexico, drivers can save on their premiums by comparing insurance quotes from different carriers. The cost of car insurance can vary based on several factors, including your driving history and the model of your car. Comparing multiple options allows you to find the right policy at an affordable price.
Start your search for the best car insurance policy in New Mexico by getting quotes from several insurers for comparison.
Below is a breakdown of car insurance companies in New Mexico and their average annual premiums.
| Company | State Minimum | 50/100/50 | 100/300/100 |
|---|---|---|---|
| GEICO | $380 | $538 | $1,406 |
| Central Insurance | $192 | $406 | $1,517 |
| Progressive | $357 | $530 | $1,557 |
| State Farm | $321 | $512 | $1,669 |
| Nationwide | $545 | $765 | $1,806 |
| Farmers | $575 | $1,226 | $2,740 |
| Allstate | $788 | $862 | $2,834 |
| Iowa Farm Bureau | $396 | $604 | $2,912 |
| Kemper Insurance | $467 | $763 | $3,268 |
| USAA | $198 | $399 | $1,054 |
Car insurance rates by city in New Mexico
Kirtland Air Force Base is New Mexico’s most expensive city for car insurance at an average cost of $2,332 annually. Alamogordo is the state’s least expensive city, with an average car insurance rate of $1,742 annually.
Car insurance premiums differ across cities in New Mexico and are influenced by traffic conditions. Cities with heavier traffic often experience more frequent accidents and insurance claims, which results in higher insurance costs.
The number of uninsured drivers, crime rates, and the average cost of repairs and medical bills also influence car insurance rates.
Below, you’ll see the average annual car insurance cost of major cities in New Mexico.
Select your city below to see the insurance company and its average full coverage rates.
How much does car insurance cost in New Mexico per month?
In New Mexico, a full coverage car insurance policy with 100/300/100 limits typically costs about $171 per month.
Opting for monthly car insurance payments can be a budget-friendly strategy for some people. It allows for spreading the cost throughout the year, making it easier to manage than a hefty annual payment. This approach provides more flexibility and avoids the burden of a large upfront sum.
Alternatively, paying your car insurance in full upon renewal may earn you a discount. Ultimately, the ideal choice depends on your needs and situation.
| Coverage Level | Avg. Monthly Rates |
|---|---|
| State Minimum – Liability Only BI/PD | $35 |
| Liability Only – 50/100/50 BI/PD | $55 |
| Full Coverage – 100/300/100 Liability BI/PD with $500 Comp/Coll Deductible | $171 |
Final thoughts on choosing car insurance in New Mexico
The ideal car insurance company varies depending on what matters most to you. Some prioritize excellent customer service, even if it costs slightly more. Others focus on finding the cheapest rates. Some drivers also value the convenience of handling everything through a mobile app, while some prefer the personalized touch of a dedicated agent.
Understanding your needs and finding the best insurance policy at a great price are important. So, take your time and check out different options to find the right policy for you.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety. “Teenagers.” Accessed September 2025.
- USAA. “How credit affects insurance premiums.” Accessed September 2025.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates in New Mexico. The average premiums are based on the sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and a clean driving record.
The rates are for different coverage limits. It includes:
- Full coverage car insurance with a coverage limit of $100,000 in bodily injury per person, $300,000 in bodily injury coverage per accident, $100,000 in property damage coverage per accident and a $500 collision/comprehensive deductible.
- Liability-only car insurance rates with a limit of 50/100/50.
- State minimum coverage limit of 25/50/10.
To evaluate the rates, we have compared 53,409,632 insurance quotes from 75 company groups across 34,588 ZIP codes. The average premiums are for comparison purposes only; your exact rates may vary.
Note: USAA is only available to military community members and their families.
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