Best Car Insurance Rates in New Mexico

Best Car Insurance Rates in New Mexico

State Farm offers the best prices for a minimum coverage policy in New Mexico, at $360 annually or $30 monthly.

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The average cost of car insurance in New Mexico is $550 per year, or $46 per month, for minimum liability.

Cheapest auto insurance in New Mexico: State Farm

State Farm is the cheapest company in New Mexico for minimum liability car insurance. Its average quote is $328 per year — 40% less than the New Mexico annual average of $550 for minimum coverage.

Cheapest car insurance companies in New Mexico

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Farm Bureau also provided annual rates below the state average: Policyholders pay an average of $445 annually, or $37 monthly. The absolute cheapest rate we found was from USAA, at $238 per year. However, USAA isn't available to the general public. Only people who have served in the military and their families are eligible.

Company
Annual rate
Monthly rate
State Farm$328$27
Farm Bureau$445$37
Geico$524$44
Allstate$700$58
Progressive$756$63
Farmers$857$71
USAA$238$20

USAA is only available to current and former military members and their families.

Getting a minimum-coverage policy is the least expensive way to meet New Mexico's auto insurance requirements. However, these policies may not provide sufficient coverage to protect all of your at-risk assets. They also don't provide any coverage for your car or any injuries you may sustain in an accident.

Make sure you understand what your insurance needs are before choosing a minimum-coverage policy. You don't want to pay out of pocket after an expensive accident.

Cheapest company for full coverage: State Farm

State Farm provides the most affordable rates for full coverage in New Mexico — just $983 per year, or $82 monthly. State Farm's premiums are 45% cheaper than the state average.

The average cost of full-coverage auto insurance in New Mexico is $1,800 per year, or $150 per month.

Company
Annual rate
Monthly rate
State Farm$983$82
Geico$1,772$148
Allstate$2,019$168
Farm Bureau$2,259$188
Progressive$2,263$189
Farmers$2,334$195
USAA$971$81

USAA is only available to current and former military members and their families.

Car insurance policies that include comprehensive and collision insurance in addition to the state-required coverages are known as full-coverage policies. In New Mexico, these policies are about three times as expensive as minimum-coverage policies, but they are also the best way to ensure that your car is protected, no matter who or what causes the damage.

Cheapest car insurance for drivers with prior incidents

State Farm offers the best rates for most New Mexico drivers after an incident.

Insurance companies view marks on your driving record as a sign that you're riskier to insure, and they raise your rates accordingly. Incidents like an at-fault accident, speeding ticket or DUI citation generally increase the average cost of full-coverage car insurance.

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Cheapest car insurance for drivers with a speeding ticket: State Farm

State Farm provides the best rates to drivers with a speeding ticket, charging $1,058 for an annual policy — 22% less than the state average, and the same rate it charges drivers with an at-fault accident on their record. If you're caught speeding in New Mexico, your rates could increase by 20%, according to our analysis.

Company
Annual rate
Monthly rate
State Farm$1,058$88
Geico$2,175$181
Allstate$2,248$187
Farm Bureau$2,508$209
Progressive$2,962$247
Farmers$3,183$265
USAA$1,206$101

USAA is only available to current and former military members and their families.

Cheapest for drivers after an accident: State Farm

New Mexico drivers who have recently been in an accident can find the cheapest car insurance with State Farm, at a typical price of $1,058 per year. This rate could result in a savings of 60% compared to the average annual rate in the state for drivers with an accident.

Company
Annual rate
Monthly rate
State Farm$1,058$88
Allstate$2,781$232
Farm Bureau$2,997$250
Farmers$3,213$268
Geico$3,398$283
Progressive$3,477$290
USAA$1,388$116

USAA is only available to current and former military members and their families.

Getting into an at-fault accident in New Mexico could result in a premium spike of 45%. That's not a small increase, and it shows why it's so important to shop around if your driving record changes.

Insurers increase rates by different degrees. Our analysis found that State Farm only raised rates by 8% after an at-fault accident, but Geico raised them by 92%. To make sure you're getting your best rates, be sure to compare quotes.

Cheapest car insurance for drivers with a DUI: State Farm

We recommend that drivers in New Mexico who are seeking insurance after a DUI citation take a look at State Farm, where a typical rate is $2,181 per year. The average annual rate for a driver from New Mexico with a DUI is $3,255, making State Farm's rates $1,074 cheaper per year.

Company
Annual rate
Monthly rate
State Farm$2,181$182
Allstate$2,763$230
Progressive$2,797$233
Farmers$3,091$258
Farm Bureau$3,828$319
Geico$6,216$518
USAA$1,910$159

USAA is only available to current and former military members and their families.

Cheapest car insurance for drivers with poor credit: State Farm

State Farm offers the best rates for New Mexico drivers with bad credit, as an average annual policy costs $1,754 per year— $769 per year less than the state average for drivers with poor credit. In New Mexico, insurance rates for drivers with poor credit are 40% higher than they are for drivers with average credit.

Company
Annual rate
Monthly rate
State Farm$1,754$146
Geico$2,175$181
Allstate$2,539$212
Farm Bureau$3,028$252
Progressive$3,143$262
Farmers$3,381$282
USAA$1,639$137

USAA is only available to current and former military members and their families.

Cheapest car insurance for married drivers: State Farm

State Farm offers best rates to married drivers in New Mexico. Rates from State Farm average $983 per year, which is $711 less expensive than the average rate we found.

Insurers often offer married drivers slightly cheaper premiums than single drivers, as married drivers are viewed as less risky. In New Mexico, we found rates for married drivers are about 6% lower than for unmarried single drivers.

Company
Annual rate
Monthly rate
State Farm$983$82
Geico$1,812$151
Progressive$1,900$158
Allstate$1,927$161
Farmers$2,129$177
Farm Bureau$2,219$185
USAA$885$74

USAA is only available to current and former military members and their families.

Cheapest car insurance for young drivers: State Farm

Young drivers looking for affordable auto insurance in New Mexico might find their best rates from State Farm. With an average premium of $1,129 per year for minimum coverage, State Farm's rates are 43% cheaper than average.

Car insurance for young drivers in New Mexico is nearly four times as expensive as it is for older drivers. Our analysis found that 18-year-old drivers pay $1,995 on average for minimum coverage, whereas 30-year-old drivers pay only $550.

Statistics show that young drivers are more prone to accidents than older drivers, which makes them costlier for insurance companies to cover.

Company
Liability only
Full coverage
State Farm$1,129$2,752
Farm Bureau$1,450$3,594
Allstate$1,986$6,327
Geico$2,229$6,242
Progressive$2,975$8,511
Farmers$3,560$8,367
USAA$637$2,174

USAA is only available to current and former military members and their families.

Cheapest for young drivers with a speeding ticket: State Farm

State Farm offers the best rates to young New Mexico drivers who have been caught speeding on the road. Its typical rate of $1,255 is 46% less than the average, and less than one-third the price of the most expensive insurer, Farmers.

Company
Annual rate
Monthly rate
State Farm$1,255$105
Farm Bureau$1,771$148
Allstate$2,262$189
Geico$2,346$196
Progressive$3,289$274
Farmers$4,405$367
USAA$865$72

*USAA is only available to current and former military members and their families.

Cheapest for young drivers after an accident: State Farm

State Farm offers the cheapest premiums to young drivers in New Mexico who have been in an at-fault accident. At just $1,255, the company's rates are 54% cheaper than average. Young drivers in New Mexico with an at-fault accident on their record pay 38% more than young drivers with a clean record.

Company
Annual rate
Monthly rate
State Farm$1,255$105
Farm Bureau$2,395$200
Allstate$3,031$253
Geico$3,519$293
Progressive$3,657$305
Farmers$4,405$367
USAA$997$83

USAA is only available to current and former military members and their families.

Best auto insurance companies in New Mexico

USAA is the best insurer in New Mexico.

We found that USAA is among the very best insurers in the country when it comes to claim satisfaction, cost and coverage options. It offers a wide range of different insurance types, as well as other financial products, like banking.

However, USAA is only available to people affiliated with the military, so we also recommend Farm Bureau and State Farm for their top-notch service. These companies have more in-person locations than USAA, which operates almost exclusively online.

Company
Editor's rating
JD Power
AM Best
Farm Bureau
NRA
USAA
863A++
State Farm
847A++
Geico
829A++
Farmers
802A
Progressive
835A+
Allstate
822A+

Average car insurance rates in New Mexico by city

Your location within New Mexico can impact your auto insurance rates by more than $700, according to our analysis. As a general rule, you'll pay higher rates if you live in a city than if you live in a rural area, as accidents and auto theft happen with greater frequency in urban areas.

We found the highest rates in South Valley, at an average annual price of $2,240 per year. Alamogordo, at just $1,534 per year, is the cheapest city for car insurance in New Mexico.

City
Average annual rate
Percent from average
Abiquiu$1,9247%
Adelino$2,04013%
Agua Fria$1,8684%
Alamo$1,714-5%
Alamogordo$1,534-15%
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Minimum auto insurance requirements in New Mexico

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

  • Bodily injury liability: $25,000 per person/$50,000 per accident
  • Property damage liability: $10,000 per accident

While minimum liability coverage policies are the most affordable, we generally recommend that you purchase higher liability limits, as well as collision and comprehensive coverage. You'll pay more up front, but it could ultimately save you tens of thousands of dollars if you get into a costly accident.

Methodology

We collected thousands of rates from ZIP codes across New Mexico for the largest insurers in the state. We used a sample driver with the following profile:

  • 30-year-old male
  • Drives a 2015 Honda Civic EX
  • Average credit

The base policy for the study was a full-coverage policy with the following limits:

Coverage type
Study limits
Bodily injury liability$50,000 per person/$100,000 per accident
Personal injury protection$10,000
Property damage liability$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible

For our minimum-coverage policy and all rates for 18-year-olds, we quoted a policy with the minimum required limits in New Mexico.

For other rates analyses (credit score, incident history and marital status) the base policy listed above was changed to reflect the new driver.

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.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.