December 6, 2021

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How a Speeding Ticket Impacts Your Insurance in New Mexico – Bankrate

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A speeding ticket increased the average cost of car insurance in New Mexico by 17%, according to Bankrate’s 2021 study of quoted annual premiums. The increase is significant, likely in part due to the number of accidents related to speeding in New Mexico year after year. On average, about 9% of all crashes are because of speeding. As an insurance provider, this is a significant number and represents potential money to be spent on claims.

Drivers who have received a speeding ticket in New Mexico can generally expect higher premiums, but there are options to prevent further negative outcomes.

How much is a speeding ticket in New Mexico?

How much does your insurance go up after a speeding ticket in New Mexico? It depends.

The speeding ticket cost in New Mexico varies between $25-$200 depending on which speed zone a driver is in and how fast they are going. New Mexico is unique in that it has what is known as “absolute speed limits.” Generally speaking, there are three main speed limits in New Mexico: 15 mph, 35 mph and 75 mph.

  • School zones require 15 mph
  • Businesses and residential areas 35 mph
  • Highways require 75

However, drivers could still receive a New Mexico speeding ticket even if they are obeying the absolute speed limit. New Mexico state law essentially requires all drivers to use their best judgement when determining speed. For example, if the speed limit is too fast for an area at a particular time (because of weather or pedestrians), drivers should slow down. Otherwise, they could get a ticket.

With each ticket comes license points, also sometimes called New Mexico insurance points. The point system is as follows:

  • 6-15 mph: three points
  • 16-25 mph: five points
  • 26 mph or more: eight points

A driver who receives 7-10 points within the same 12 months, may have their license suspended for three months. Someone who earns 12 or more points within a year may lose their license for up to a year.

How much does a speeding ticket increase your car insurance in New Mexico?

The National Highway Traffic Safety Administration conducted a multi-year study and found that men are 50% more likely to speed than women. In another study conducted by the Insurance Institute for Highway Safety, it was found that a staggering 71% of all passenger vehicle deaths were male in 2019. This data helps make sense of the higher premium males usually see in comparison to women for speeding.

More striking differences in rates tend to be apparent during younger ages, but begin to balance out by around the time men turn 40 years old.

Average annual full coverage premium

Age Rate before speeding ticket Rate after speeding ticket % increase
40-year-old male $1,398 $1,672 20%
40-year-old female $1,441 $1,647 14%
Total average $1,419 $1,659 17%

40-year-old men and women generally pay similar rates for insurance following a speeding ticket. Women may pay a little more prior to an incident, but men are generally penalized more heavily after a speeding ticket. For many insurance companies, the higher risk of accidents warrants the steeper increase.

How to lower your car insurance after a speeding ticket in New Mexico

A speeding ticket in New Mexico comes with increased premium costs. In most cases, the ticket would need to be formally dismissed in court in order to avoid related penalties. Fortunately, there are ways to lower insurance costs even with a speeding ticket on file.

Get quotes from other car insurance companies

Not every insurance company heavily penalizes drivers for speeding tickets. Each provider will typically increase the cost of a premium after a speeding ticket, but the amount of the increase depends on the company. This is why it is important to consider shopping around for a better rate after getting a speeding ticket.

Average annual full coverage premium by car insurance company in New Mexico

Car insurance company Rate before speeding ticket Rate after speeding ticket
Allstate $1,893 $2,297
Central $1,541 $1,527
Farmers $1,278 $1,791
Geico $1,463 $1,583
Iowa Farm Bureau $1,498 $1,648
Progressive $1,310 $1,504
State Farm $1,396 $1,410
USAA $1,102 $1,328

*Premiums are average annual full coverage premiums for 40-year-olds

While rate shopping, it could be worthwhile to pay close attention to a company’s average price, J.D. Power score for customer satisfaction and online reviews. All of this information could further illustrate how reliable a company is and whether it is easy to work with when filing a claim.

Bundle

Regardless of whether or not you have a speeding ticket, you can usually save money on your insurance policy by using the same company for all of your insurance needs. Whether you choose to bundle life insurance, homeowners insurance or another type is up to you. The fact that you are using the same company for each of your insurance needs will generally earn you a sizable discount. The amount you save by bundling varies on the provider. You can discuss your insurance needs with an agent while rate shopping.

Increase your deductible

Choosing a higher deductible means you receive less of a payout after filing a claim. It also means you pay less month to month or annually. Most providers have a slew of deductible options, so you will not have to necessarily go with the highest option to see meaningful savings. However, you should pick a number that you are comfortable with paying out of pocket in case of a claim.

Take a driver safety course

Consider contacting your local court to ask if you can take a driver safety course to have a ticket removed from your file. Not all tickets are eligible, so whether or not you are approved will depend on the severity of the speeding ticket. There is generally a small fee involved, but courses are typically offered online, making them convenient for most drivers.

Other speeding ticket considerations

Speeding 26 mph over the speed limit in New Mexico may be considered reckless driving. The penalties could include up to $100 in fines, 5-90 days in jail and more serious consequences for subsequent offenses. A conviction of this magnitude could result in 6-8 New Mexico insurance points. This means you could automatically have your license suspended with a single reckless driving conviction.

Frequently asked questions

What is the best car insurance company for drivers with speeding tickets?

The best insurance companies to work with after a speeding ticket is the one that offers you the best rate. However this will look different for every driver. Fortunately, there are several providers that show less of a rate increase for speeding, meaning you have multiple options to choose from.

What is the average cost of car insurance?

The average cost of car insurance in the United States is $1,674 per year. In New Mexico, it is $1,419 per year. Each driver pays a personalized amount depending on factors such as their driving record, vehicle type and ZIP code.

What is the best car insurance in New Mexico?

There are several great car insurance companies in New Mexico worth considering, and many of them are nationally trusted. When deciding on a company, you might consider its J.D. Power score, BBB rating and AM Best rating, as these tend to be useful markers in judging insurer reliability. Going through the quote process with each company can also help you find which one gives you the best price.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 18-year-old and 40-year-old male and female drivers with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania.

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