Best Car Insurance Rates in New Mexico

ValuePenguin surveyed rates from top insurers across the state and found that State Farm offers the cheapest auto insurance in New Mexico. Rates from this company averaged $1,295 per year, which is 41% less than the state average of $2,194. Furthermore, State Farm’s car insurance premiums for our single, 30-year-old male benchmark driver were one-third the cost of premiums from Farmers the most expensive insurer we surveyed.

Cheapest auto insurance companies in New Mexico

The three cheapest auto insurance companies in New Mexico are State Farm, Progressive and Farm Bureau Financial Services. Full coverage policy premiums from these companies for our 30-year-old male, benchmark driver averaged $1,762 per year, which is 20% less than the New Mexico average.

USAA also provided very affordable rates, however since they only offer coverage to former and current military members and their family members we excluded them from our overall rankings.

Cheapest for full coverage: State Farm

The best choice for full coverage insurance coverage in New Mexico is State Farm, which provided the cheapest car insurance quotes for our benchmark driver. State Farm's rates average $108 per month, which is $75 less than the statewide average monthly premium of $183.

Car insurance policies that include comprehensive and collision insurance in addition to the state required coverages are known as having full coverage. These policies are much more expensive — 214% greater — than those that have just what is required by the state, however they are also the best way to ensure you and your vehicle are protected.

Cheapest for minimum liability: State Farm

The cheapest company in New Mexico for minimum liability car insurance is State Farm — which provided quotes for our benchmark driver that were 36% less than the New Mexico annual average of $699 for minimum coverage. Additionally, Progressive and Farm Bureau Financial Services also provided rates below the state average.

Only getting the minimum required limits of liability insurance is the least expensive to get the mandated auto coverage in New Mexico. However, these policies may not have high enough limits to protect all of your at-risk assets. Make sure you understand what your insurance needs are before choosing a policy with such minimal coverage.

Cheapest for drivers with an accident: State Farm

New Mexico drivers who have recently been in an accident can find the cheapest car insurance with State Farm. According to our survey of rates, picking this company could result in a savings of 55% in your auto insurance bill compared to the average rate in the state for drivers with an accident on their record.

If you've been in a recent accident, getting cheap insurance coverage can be challenging, as most insurers will consider you to be risky to insure. Based on our research, we found that rates increase by 43% after an at-fault accident — with the average cost of coverage for drivers in New Mexico with an accident on their record being $3,138 per year.

Best auto insurance companies in New Mexico

USAA is the best insurer in New Mexico, when accounting for both claim satisfaction and overall customer service ratings. Respondents from a recent survey of current customers gave USAA very high ratings for customer service, with 62% of respondents saying their experience with USAA is excellent. This is 16 percentage points higher than the next highest rated insurance company for customer service, State Farm.

Minimum requirements for auto insurance coverage in New Mexico

New Mexico requires both bodily injury and property damage liability coverage, for all drivers, with the following minimum limits:

Additionally, car insurance companies in New Mexico must include uninsured and underinsured motorist liability insurance with the policies that they offer. However, these coverages are not mandatory as they can be rejected.

Cheapest Car Insurance in New Mexico: by City

The companies that will be able to offer you the cheapest car insurance rates will vary depending on where you live in New Mexico. Below, we've provided the three cheapest insurers for each of the 50 cities we included in our study.

Albuquerque, N.M.

A full coverage auto insurance policy in Albuquerque — the largest city in New Mexico — averages $2,584 per year, according to our survey of quotes from top insurers. This is significantly more expensive than the New Mexico average of $2,194 per year.

To get the cheapest auto coverage in Albuquerque, we recommend that you consider State Farm, Progressive or Allstate. Quotes from these companies for our 30-year-old male benchmark driver living in this city were 17% less than the citywide average.

Las Cruces, N.M.

Las Cruces drivers can expect to pay less than the state average for car insurance. Our research of rates for our benchmark driver found that quotes averaged $2,027 per year for car insurance — which is 8% less than the statewide average.

Drivers in this city can save, on average, $438 per year on auto insurance if they choose one of the three cheapest insurers in the city: State Farm, Progressive and Farm Bureau Financial Services. Full coverage insurance policies from these companies ranged from $1,235 to $1,916 per year.

Rio Rancho, N.M.

Car insurance costs in Rio Rancho averaged $2,396 per year for our 30-year-old benchmark driver — which is 9% greater than the New Mexico average of $2,194. However, drivers that get car insurance through one of the three cheapest insurance companies — State Farm, Progressive and Farm Bureau Financial Services — could save as much as $898 per year.

Santa Fe, N.M.

Judging from the rates we gathered from seven of the top insurance companies in New Mexico, car insurance costs in Santa Fe average $2,228 per year for a full coverage policy. Compared to the state average, these costs are just 2% greater.

Cheap rates for car insurance in Santa Fe can be found with State Farm, Progressive and Farm Bureau Financial Services. These companies offered our benchmark driver rates that averaged $1,801 per year, which is 19% less than the statecity-wide average.

Roswell, N.M.

We found that auto insurance rates averaged $2,238 per year in Roswell, which is only slightly greater than the New Mexico average. However, for low-cost auto coverage in Roswell drivers should consider State Farm, Progressive and Farm Bureau Financial Services. Rates from these three insurers were $1,827 per year on average — $411 less than the Roswell average.

Cost of car insurance by city

There were a number of other New Mexico cities included in our analysis in addition to the ones highlighted above. Here is the full list of the 50 cities in the Land of Enchantment that we included in our study, ranked from those with the cheapest local rates for our sample driver to the most expensive.

How we conducted the survey

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different. The quotes we obtained were for a 2015 Honda Civic EX owned by our benchmark driver, who drives 12,000 miles a year.