We analyzed rates from the top auto insurance companies in New Mexico and found that State Farm offers the best prices for a minimum coverage policy, charging drivers $360 annually, or $30 monthly.
We generally urge shoppers to compare quotes for the same coverage levels across at least three different companies. Type your ZIP code into the box above to get rates from the top providers near you, or read on to learn which companies feature the lowest premiums in your state.
Cheapest auto insurance in New Mexico: State Farm
The cheapest company in New Mexico for minimum liability car insurance is State Farm — which provided quotes for our sample driver that were 37% less than the New Mexico annual average of $570 for minimum coverage. Farm Bureau also provided annual rates below the state average: Policyholders pay an average of $555 annually, or $46 monthly.
Find Cheap Auto Insurance Quotes in New Mexico
Members of the military and their families, however, are eligible for an even better deal. USAA, the overall cheapest option, costs just $270 annually, or $23 monthly. That's 53% cheaper than the New Mexico state average.
Getting a minimum coverage policy is the least expensive way to meet New Mexico state auto insurance requirements. However, these policies may not have sufficient coverage to protect all of your at-risk assets, and they 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
The average cost of full coverage auto insurance in New Mexico is $2,039 per year, or $170 per month, but State Farm provided the most affordable rates. At just $1,292 annually, or $108 monthly, State Farm's premiums are 37% cheaper than the state average.
|New Mexico average||$2,039||$170|
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 258% more expensive than minimum coverage policies, but they are also the best way to ensure that your car is protected, no matter what or who causes the damage.
Cheap car insurance for drivers with prior incidents
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, a speeding ticket or a DUI citation generally increase the average cost of full coverage car insurance. With this in mind, we found the cheapest full coverage car insurance for drivers who have:
Find Cheap Auto Insurance Quotes in New Mexico
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 52% on your auto insurance bill compared to the average annual rate in the state for drivers with an accident on their record.
|New Mexico average||$2,904||$242|
Getting into an at-fault accident in New Mexico could result in a premium spike of 42%. 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 to different degrees: our analysis found that State Farm only raised rates by $104 after an at-fault accident, but Geico raised them by $1,307. To make sure you're getting your best rates, be sure to compare quotes.
Cheapest car insurance for people with a speeding ticket: State Farm
If you're caught speeding on the roads, your rates will increase in New Mexico by 20%, according to our analysis. State Farm provides the best rates to drivers with a speeding ticket, charging $1,396 for an annual policy — $1,049 less than the state average, and the same rate they charge drivers with an at-fault accident on their record.
|New Mexico average||$2,445||$204|
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. While insurance rates in New Mexico increase far more sharply for a DUI (56%) than for a speeding ticket (20%) or an at-fault accident (42%), an annual policy from State Farm costs the same after all three incidents: $1,396 annually, or $116 monthly. The average annual rate for a driver from New Mexico with a DUI is $3,173, making State Farm's rates almost $1,800 cheaper.
|New Mexico average||$3,173||$264|
Cheapest car insurance for drivers with poor credit: State Farm
In New Mexico, insurance rates for drivers with poor credit are 41% higher than they are for drivers with average credit. State Farm offers the best rates to these kinds of drivers, with an average annual policy costing $1,954 — $483 less than the state average for drivers with poor credit.
|New Mexico average||$2,437||$203|
Cheapest car insurance for married drivers: State Farm
Insurers offer married drivers slightly cheaper premiums than single drivers, as married drivers are viewed as less risky. In New Mexico, we found that rates for married drivers are about 6% lower than for single drivers, with State Farm offering the best rates to these drivers. Annual premiums from State Farm average at $1,292, which is $625 less expensive than the average rate insurers in our study charged single drivers.
|New Mexico average||$1,917||$160|
Cheapest car insurance for young drivers: Farm Bureau
Car insurance for young drivers in New Mexico is more than double what it is for older drivers. Our analysis found that young drivers pay $5,605 on average, whereas older drivers pay only $2,039.
Statistics show that young drivers are more prone to accidents than older drivers, which makes them costlier for insurance companies to cover. Young drivers looking for affordable auto insurance in New Mexico might find their best rates from Farm Bureau. With an average annual premium of $3,521, Farm Bureau's rates are 37% cheaper than average.
|N/A||New Mexico average||$5,605||$2,078|
*USAA is excluded from rankings because it is only available to current and former military members and their families.
Generally speaking, we urge all drivers — and young drivers in particular — to get full coverage auto insurance so their own car is covered in the event of an accident. If you're a young driver who opts for a minimum coverage policy, however, we recommend that you look at State Farm. The company offers the cheapest widely-available minimum coverage policies for young drivers, charging just $1,239 annually.
Cheapest for young drivers with one accident: State Farm
Accidents cause the cost of insurance to rise for everyone, but particularly for young drivers, who already pay above-average premiums. Our research found that young drivers in New Mexico with an at-fault accident on their record pay 34% more than young drivers with a clean record. State Farm offers the cheapest premiums to young drivers who have been in an at-fault accident: At just $4,081, the company's rates are 46% cheaper than average.
|New Mexico average||$7,517||$626|
Cheapest for young drivers with one speeding ticket: Farm Bureau
Farm Bureau offers the best rates to young New Mexican drivers who have been caught speeding on the road. The company only raises rates by $441 after a speeding ticket, charging young drivers $3,962 annually, or $330 monthly. While an increase of any kind is certainly not ideal, other companies raise rates far more significantly. Farmers, for instance, raises rates from $7,914 to $9,885 after a speeding ticket — a spike of $1,971, more than four times the increase that Farm Bureau charges.
|New Mexico average||$6,404||$534|
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 our 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.
Percent of respondents overall extremely satisfied with most recent claim
Percent of respondents who rated customer service as "excellent"
Overall rank takes both claim satisfaction and customer service rankings into account.
If you prioritize strong customer service above all else, Farmers and Farm Bureau are likely your best choices. Farmers received an above-average claims satisfaction score from J.D. Power, and its Complaint Index at the National Association of Insurance Commissioners (NAIC) was just 0.19, meaning that it received less than the average number of complaints when compared to its size. Farm Bureau also had a low Complaint Index, scoring 0.43 — well below the national average of 1.0.
NAIC Complaint Index (lower is better)
J.D. Power claims satisfaction score (higher is better)
AM Best Financial Strength Rating
All the companies we looked at had a Financial Strength Rating from AM Best of A or better, which indicates AM Best's confidence in their ability to pay out claims.
Average car insurance cost in New Mexico by city
Your location within New Mexico can impact your auto insurance rates by more than $800, 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.
Average annual cost
Percent from average
Auto insurance rate changes by company in New Mexico
In New Mexico, auto insurance rates have decreased by 3.4% among the largest auto insurance companies. This is the first time rates fell in back-to-back years over the past decade. Rates have fallen primarily due to the COVID-19 pandemic — a record low number of auto insurance claims were filed in 2020, leading to insurers offering cheaper policies.
Premiums written (millions) 2019
Rate change 2019
Rate change 2020
|Auto Club Enterprises||$40.4||0.0%||2.5%|
|Hartford Fire & Casualty||$35.1||0.6%||0.0%|
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:
- Bodily injury liability: $25,000 per person and $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.
Recap of the most affordable New Mexico insurance companies
- Minimum coverage: State Farm
- Full coverage: State Farm
- After an at-fault accident: State Farm
- After a speeding ticket: State Farm
- After a DUI: State Farm
- Poor credit history: State Farm
- Very good credit history: State Farm
- Married couples: State Farm
- Young drivers: Farm Bureau
- Young drivers with one accident: State Farm
- Young drivers with one speeding ticket: Farm Bureau
We collected thousands of rates from ZIP codes across New Mexico for the largest 10 insurers. We used a sample driver with the following profile:
- 30-year-old man
- Drives a 2015 Honda Civic EX
- Average credit
The base policy for the study was a full-coverage policy with the following limits:
|Bodily liability||$50,000 per person/$100,000 per accident|
|Personal injury protection||$10,000|
|Property damage||$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, we quoted a policy with the minimum required limits in New Mexico, above.
For other rates analyses (age, credit score, accident history and marriage status) the base policy listed above was alternated 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.