New Mexico Auto Insurance (2024)

You can find the best New Mexico auto insurance at companies with cheap rates and solid reputations. Since each car insurance company in New Mexico charges unique rates for different coverages and driver types, all drivers should compare rates at multiple companies to find the right one for them.

To help you find cheap auto insurance in New Mexico, we’ve compiled average rates from the best auto insurance companies in New Mexico for various insurance coverages and driving records. Continue reading to learn about cheap car insurance in NM, other ways to reduce rates, New Mexico auto insurance requirements, and more.

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Finding Cheap Auto Insurance in New Mexico 

Finding cheap New Mexico car insurance isn’t as simple as applying for the cheap company your friend recommends. While a company may be the cheapest for drivers with clean records, its rates could be higher than the most expensive companies for drivers with bad credit scores or DUIs.

So, looking at average insurance rates at the best auto insurance companies based on a driver’s record is important. To help you through the process, we’ve covered multiple examples of New Mexico rates.

Cheapest New Mexico Auto Insurance for Liability

All New Mexico drivers must carry liability auto insurance. The average cost of New Mexico minimum liability insurance is $38 per month or $456 annually, though this average varies by company.

If you’re struggling to afford the minimum liability insurance or want lower rates to afford more coverage, choosing a cheaper company can help. Below are the average rates for minimum liability insurance at major New Mexico companies.

Liability Auto Insurance Average Rates From Top Providers

On average, one of the cheapest companies for minimum liability insurance is State Farm, followed by Geico and Travelers. However, Allstate and Farmers are more expensive, so if you’re looking for savings on basic policies, avoid these companies.

Cheapest New Mexico Auto Insurance for Full Coverage

Full coverage auto insurance in New Mexico doesn’t have to empty drivers’ wallets if they take the time to compare company rates. Full coverage also protects drivers much more than minimum liability coverage.

For example, if a driver causes an accident, full coverage pays for the driver’s car repairs. The driver’s car repairs don’t have coverage under a liability-only policy, just the other parties’ costs. 

Drivers looking for cheap full coverage auto insurance should consider getting quotes from the companies with the cheapest average rates on the list below.

Full Coverage Auto Insurance Rates From Top Providers

The average cost of full coverage insurance policies in New Mexico is $120 monthly or $1,440 a year. Some companies like State Farm, Geico, and Travelers usually fall below this average. However, others will be above New Mexico’s average. You can compare rates between companies, like Geico vs State Farm auto insurance, to make sure you’re getting the best price.

Cheapest New Mexico Auto Insurance for Young Drivers 

Young drivers who purchase their own insurance policies rather than joining an existing policy will see high rates. Auto insurance for new drivers is expensive for many reasons. Insurance companies charge them higher rates due to their inexperience, meaning they’re more likely to crash and file a claim.

However, while even the cheapest companies for insurance will still be expensive for younger drivers, they can save hundreds or thousands of dollars by choosing one of the cheapest companies compared to the most expensive ones. Look at the table below to see how rates vary by insurance company.

Full Coverage Auto Insurance Monthly Rates for Teen Drivers

Companies offering cheaper rates to young drivers include State Farm, Geico, and Nationwide. While their average rates in NM for young drivers are well above the state average, they’re still a few thousand dollars less annually than companies like Farmers, Allstate, and Progressive.

It’s best to join a parent’s policy if drivers can, as rates will be much cheaper than buying a separate policy as a young driver. If young drivers like with their parents or are away at school without a family car, they can join their parent’s policy.

There are also discounts parents and young drivers can qualify for, like discounts for good students and student-away discounts.   

Cheapest New Mexico Auto Insurance for Drivers With Bad Credit 

Often, bad credit scores affect your insurance rates. To insurers, bad credit scores indicate a driver is more likely to miss car insurance payments, so those drivers see higher rates. Missed payments can also lead to issues like canceled insurance and driving illegally, resulting in future rate increases.  

If you have bad credit, look at the companies below to see if there are cheaper companies to get quotes from than your current provider. Finding the best auto insurance companies for bad credit doesn’t have to be difficult.

Full Coverage Auto Insurance Monthly Rates by Credit Score

Allstate has some of the most expensive rates for drivers with bad credit, so those drivers should avoid the company. After all, it’s harder to fix a credit score if you pay higher rates. A cheaper company like Geico or State Farm will help bad-credit drivers save money and improve their scores, which goes a long way to lowering rates. 

Cheapest New Mexico Auto Insurance Companies for Drivers With Traffic Tickets

In any state, a traffic ticket will raise your insurance rates. Traffic tickets like speeding tickets place drivers in a higher risk category at their insurance company, as reckless driving behaviors increase the risk of crashing and filing a claim. How a speeding ticket affects your auto insurance rates depends on the company you’re insured with.

Take a look at the best auto insurance companies for drivers with speeding tickets.

Below, you can see the average rates at different New Mexico insurance companies for drivers with traffic tickets.

Full Coverage Auto Insurance Monthly Rates: One Ticket vs. Clean Record

Does a speeding ticket affect your car insurance? If you have one or more traffic tickets on your driving record, you could get quotes from a few companies to see if you can reduce your auto insurance rates.

Cheapest New Mexico Auto Insurance Companies for Drivers With At-Fault Accidents 

At-fault accidents always increase your auto insurance rates unless you have accident forgiveness at your insurance company. Like traffic tickets, at-fault accidents place you in a higher risk category of drivers more likely to crash and file a claim. Learning how to file an auto insurance claim is important for every insurance customer. If you recently had an at-fault accident and noticed a huge rate increase, looking at new companies may help you reduce them.

Full Coverage Auto Insurance Monthly Rates: One Accident vs. Clean Record

State Farm has some of the cheapest rates on average for drivers with at-fault accidents, so if you aren’t already with State Farm, you may want to get a quote to see if State Farm offers you a cheaper rate.

You could also consider companies with at-fault accident programs for the future. Some companies only require you to be accident-free with them for a few years, while others may require a small annual fee to join. Regardless, accident-forgiveness programs won’t raise your rates for your first at-fault accident. 

Cheapest New Mexico Auto Insurance Companies for Drivers With DUIs 

Driving impaired is a huge red flag for insurance companies since they’re at higher risk of causing accidents. Drivers with a DUI conviction will also find it harder to get cheap auto insurance, as companies charge them higher rates.

Therefore, drivers with DUIs will benefit from shopping around to see if a different New Mexico insurance company can offer cheaper rates. Below, you can see how average rates vary among New Mexico companies for DUI auto insurance.

Full Coverage Auto Insurance Monthly Rates by Driving Record

If you’re looking for the best auto insurance for drivers with a DUI, State Farm is one of the best companies. While Progressive is usually one of the most expensive companies for auto insurance, its average rates after a DUI are some of the cheapest in New Mexico. On the other hand, while Geico is normally a cheap insurance company, they’re one of the most expensive for DUI drivers.

These two companies are great examples of how rates can change drastically at different companies depending on a driver’s record. A cheap company for most drivers may hike rates for certain driving infractions relative to other companies. So, shopping around and comparing rates based on your driving record is vital. 

Cheapest New Mexico Cities for Auto Insurance

Insurance rates change as drivers move around New Mexico, even if they stick with the same provider. For example, car insurance in Las Cruces, NM, may cost more than if you move to a rural area. Some of the reasons for the average rate changes based on location are as follows:

• Crime: Areas with high crime levels will see higher insurance rates, as your car is more likely to be vandalized or stolen. 
• Local traffic and accidents: Insurance companies will examine the history of accidents and claims in an area. Insurers also consider traffic patterns, as heavier traffic means a higher risk of accidents.
• Weather: Areas prone to extreme weather have higher insurance rates. For example, if your county frequently has heavy snow or rain, your rates will be higher than in an area with mild weather.

One of the cities with the most expensive average insurance rates is Albuquerque, New Mexico, making it harder to find cheap Albuquerque, NM auto insurance. However, as the city with the largest population in New Mexico, this higher average rate makes sense.

If an area has more drivers, there’s a higher likelihood of accidents and filing claims. So if you’re moving to this city, get car insurance quotes to find the best cheap auto insurance in Albuquerque.  

Tips for Saving on New Mexico Auto Insurance

So far, we’ve examined numerous factors that affect auto insurance rates and discussed the companies with the cheapest rates for each factor. If you’re already with the cheapest company based on your driving record but need to save more, there are other ways to save. 

Below, we’ve listed several tips for reducing your auto insurance rates beyond shopping at different insurers in New Mexico. 

• Apply for more auto insurance discounts. Your insurance company may offer more auto insurance discounts you need to apply for to get. For example, you’ll need to show a report card to get a good student discount.
• Improve your credit score. Auto insurance and your credit score are connected. Since bad credit scores raise your insurance rates, improving your credit score can greatly reduce your rates over time.
• Keep a clean driving record. Fewer tickets and accident claims will result in cheaper rates. If you have any infractions on your record, your rates will go down over time if you maintain a clean driving record. Learn about how auto insurance companies check driving records so you can be a smarter insurance customer.
• Raise your car insurance deductible. Increasing your auto insurance deductible will reduce your rates. However, don’t increase it beyond an amount you can’t pay out-of-pocket for after an accident.
• Reduce your car insurance coverage. If you have add-on coverages like rental car reimbursement, you can eliminate them to reduce your costs. You can also carry just minimum liability insurance if your car greatly depreciates. 
• Sign up for usage-based insurance. If you drive less than 10,000 miles per year, signing up for usage-based auto insurance may be your cheapest option 

Following the tips above can help you find savings and maintain cheap rates. Remember that even if car insurance becomes too expensive, you should never drop it. Driving without insurance is illegal and increases your insurance rates substantially in the future. 

Instead, talk to your insurance company if you can’t make a payment and see if you can work out a payment plan. 

New Mexico Auto Insurance Laws and DUI Penalties 

A state’s insurance laws and DUI penalties can affect drivers’ auto insurance rates. Read on to learn how much insurance New Mexico requires and its DUI penalties. 

New Mexico Minimum Auto Insurance Requirements

You must meet New Mexico minimum auto insurance requirements to drive legally in the state. Not carrying the required coverages carries several penalties, such as higher insurance rates, fines, possible loss of driving privileges, and more.

In New Mexico, drivers must have bodily injury liability insurance and property damage liability insurance. If you cause an accident, these coverages pay for other parties’ medical and property damage bills.

The minimum amounts for these two coverages in New Mexico are as follows:

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

These limits refer to the maximum amount insurance will pay on a covered claim. For example, if you cause $15,000 worth of damages in an accident, your insurer will only pay out $10,000. So you’re responsible for the remaining $5,000.

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As a result, we recommend purchasing a higher liability amount than New Mexico requires if you can afford it. Higher limits help you avoid high out-of-pocket costs after an accident.

New Mexico Optional Auto Insurance Coverages 

Besides property damage and bodily injury liability (BIL) auto insurance, New Mexico doesn’t require other coverages. However, if you have a vehicle lease or loan, your lender’s contract will likely require you to purchase comprehensive and collision insurance for a full coverage policy. 

These coverages protect the lender’s assets. For example, collision insurance pays for the car’s repairs if the driver crashes into another vehicle or object, and comprehensive insurance covers repairs from non-collision events like weather, crime, and animal-related accidents. 

However, if you have no lender, the following coverages are optional in New Mexico:

• Collision auto insurance
• Comprehensive auto insurance
• Gap insurance
• Medical payments coverage
• Modified car insurance
• New car insurance
• Personal injury protection insurance 
• Rental car reimbursement coverage
• Roadside assistance
• Uninsured motorist (UM) coverage

Remember that not all of the above coverages are available at all insurance companies in New Mexico since they’re optional. If optional coverage is important to you when looking for a new company, see which companies offer the coverage you want before committing to one. 

New Mexico DUI Auto Insurance Penalties

In any state, a DUI charge comes with several penalties. In New Mexico, drivers can expect some or all of the following penalties after a DUI conviction:

• Alcohol screening 
• Alcohol counseling 
• Community service 
• Ignition interlock device
• Jail time 
• Multiple fines and fees 
• Probation 
• License suspension
• SR-22 certificate 

These penalties increase in severity depending on the nature of the offense and the number of DUIs. For example, penalties are harsher for an aggravated DUI, where another person gets injured or the level of alcohol in the blood is extremely high. Read more about auto insurance for drivers with a DUI.

Penalties will also be harsher for each subsequent DUI, eventually resulting in a lifetime revocation and years of jail time. Penalties for drinking and driving will hopefully create a future without drunk driving.

New Mexico SR-22 Auto Insurance Certificate Requirements 

Certain drivers must provide proof of insurance to drive and get their licenses back. They’ll need an SR-22 auto insurance certificate from their insurance company proving they have the mandatory coverage required in New Mexico.

Common types of drivers needing an SR-22 certificate are those caught driving under the influence, without licenses, or with multiple points on their driving records.

If you already have an insurer, you’ll need to inform your company that you need an SR-22 certificate. Your company may require a small fee to file the SR-22 certificate. Since you’re a high-risk driver, they may also choose to drop you as a customer. However, your company must give you ample notice of termination, so you have time to find a new company.

When applying, drivers who need a new insurance company with an SR-22 certificate must let them know. Failure to do so could result in policy termination.

If you don’t have a car, you’ll still need an SR-22 certificate. So, you’ll need to purchase non-owner auto insurance to fulfill your New Mexico insurance obligation.

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Find Cheap New Mexico Auto Insurance Coverage Today

New Mexico auto insurance doesn’t have to break the bank. Drivers can often find cheaper New Mexico auto insurance rates by shopping for quotes from different companies, applying for discounts, comparing different types of auto insurance, and keeping a clean driving record. 

If your New Mexico auto insurance rates are too expensive, compare auto insurance rates by make and model from different auto insurance companies to find savings. You can use our free quote comparison tool to shop for the best New Mexico auto insurance quotes today.

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