Best and Cheapest Home Insurance in New Mexico

Farmers has the cheapest home insurance in New Mexico, for an average $891 per year.

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Best cheap home insurance in New Mexico

Home insurance in New Mexico costs an average of $1,338 per year. However, cost is only one of the major factors to determine which company may be the best for you. We collected thousands of quotes across hundreds of ZIP codes from New Mexico's top home insurance companies to help you compare in terms of cost, reliability, coverage and customer service.

Cheapest home insurance rates in New Mexico

Farmers has the cheapest home insurance rates in New Mexico, at $891 per year on average.

Allstate also has affordable policies for 26% less than the average in the state.

The average annual rate for home insurance is $1,338 per year in New Mexico. Rates in New Mexico are overall 12% cheaper than the national average of $1,516.

Most affordable home insurance options in Arizona

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Cheap annual home insurance in New Mexico

Annual cost
Farmers logo
Allstate logo
State Farm logo
State Farm
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Best for most people in New Mexico: Farmers

  • Editor rating

  • Annual rate

    $891 ?

Pros and cons

  • Strong customer service
  • Most affordable rates
  • Many discount options
  • Limited coverage add-ons

Farmers offers the cheapest home insurance in New Mexico at $891 per year, which is 33% below the state average. In addition to cheap rates, Farmers has a range of policies, great service and online tools.

Farmers has many discounts that you can qualify for, such as the new home discount for any home built less than 14 years ago. Farmers also offers the standard discounts you'd expect, such as discounts for paying on time, paying online and bundling.

Farmers has one of the best customer satisfaction scores in the state, receiving just under half of the complaints an average company its size does. With the convenience that comes with an easy-to-use mobile app and online quotes and claims, Farmers is a great option for most homeowners in New Mexico.

However, while Farmers does offer three tiers of coverage to help you customize your policy, you'll only have a few add ons to choose from, including contents replacement cost coverage and eco-rebuild coverage. If you're looking for a highly customizable policy, Farmers might not be the best company for you.

Best customer service: State Farm

  • Editor rating

  • Annual rate

    $1,096 ?

Pros and cons

  • Great customer service
  • Online tools
  • Limited add-ons

State Farm has the highest overall customer support rating in New Mexico due to personalized service and easy-to-use online tools. They have excellent J.D. Power ratings for customer satisfaction, and they receive one-quarter fewer complaints than the average company their size.

State Farm offers home insurance at $1,096 per year on average. That's $200 more expensive than the cheapest company but still 19% cheaper than the state average. However, if you value excellent customer service and solid online tools, State Farm might be the best company for you.

State Farm has standard coverage like property coverage and personal liability, but you can only get limited add-ons for customizing your policy, such as cost replacement coverage. Along with limited coverage customization, State Farm does not offer many unique discounts, though you'll still find standard discounts like bundling and home security.

Best home insurance for bundling: Allstate

  • Editor rating

  • Annual rate

    $984 ?

Pros and cons

  • Steep bundling discounts
  • Convenient online tools
  • Low rates
  • Mid-level customer service

Allstate offers the best bundling discount for home insurance in New Mexico. Allstate home insurance costs an average of $984 per year, 26% below the state average.

You can also potentially get a 25% discount on home insurance from Allstate for bundling your home and car insurance. That's almost double the average discount we found, with the next highest being a 17% discount from State Farm.

Allstate offers a convenient online experience for fast quotes, claims and bill payments.

Allstate has both good standard coverage and plenty of coverage customization options. You can get anything from flood and earthquake insurance to coverage for musical instruments or sports equipment. You can also bundle home with many types of insurance, including landlord, motorcycle, motorhome and boat insurance.

While Allstate has around 60% fewer complaints on average than similar companies, Allstate doesn't have the best customer support scores in the state.

New Mexico home insurance rates by city

Home insurance in Albuquerque, the largest city in New Mexico, costs $1,045 on average, 22% more than the state average. The second-largest city is Las Cruces, where rates average $784, which is 44% cheaper than average.

The cheapest town in New Mexico for home insurance is Grants, with an average cost of $736 per year, while the most expensive city is Kenna at $5,783 per year.

Average annual cost
Difference from state average
Agua Fria$771-42%
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Best home insurance companies in New Mexico

State Farm has the best customer service for homeowners in New Mexico, with few customer complaints and personalized service.

Farmers also received high support scores with its convenient online experience.

State Farm

Common home insurance perils in New Mexico: wildfires and flooding

Homes in New Mexico are at the greatest risk from wildfires and flooding. While some of the damage from these perils is covered by your insurance, you may need to get additional coverage to fully protect your home.


Wildfires are especially common in the more mountainous areas of New Mexico, which are more forested. Fortunately, this kind of damage is almost always covered by homeowners insurance. Fire is one of the named perils included in even the most basic home insurance.


Floods are not common in New Mexico, but they can be a risk during major storms. Unfortunately, flooding is almost never covered by home insurance policies. You can buy a separate flood insurance policy from the National Flood Insurance Program (NFIP) or a policy through a private insurer to cover damage from flooding.

Frequently asked questions

How much does home insurance cost in New Mexico?

The average cost of home insurance in New Mexico is $1,338 per year, which is 12% cheaper than the national cost of home insurance, $1,516.

Who has the best home insurance in New Mexico?

Farmers offers the best home insurance in New Mexico, with the cheapest rates along with well-rated online tools and customer service.

Who has the cheapest home insurance in New Mexico?

Farmers has the cheapest home insurance rates in New Mexico at $891 per year. That's 33% cheaper than the state average.


To find the best home insurers in New Mexico, we collected quotes from the top home insurance companies in the state across every ZIP code.

We compared the quotes for a home built in 1983 worth $171,400, which is the median age and price of an owner-occupied home in New Mexico, according to the latest U.S. Census data.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. Quadrant's rates were publicly sourced from insurer filings and should only be used for comparative purposes as your own quotes may be different.

Home insurance ratings are based on a combination of complaint data from the National Association of Insurance Commissioners (NAIC), the J.D. Power customer satisfaction survey and ValuePenguin's own editorial ratings.

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.