November 29, 2021

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The Best Cheap Car Insurance in New Mexico in 2021

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Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

The average New Mexico driver will pay $915 annually for car insurance , according to the Insurance Information Institute. Compared to the national average of $935 per year, car insurance in New Mexico is affordable in the US. 

Car insurance companies consider your location, age, gender, and driving record to calculate rates for premiums. Other factors like credit score, marital status, vehicle type, previous coverage, and miles driven can all play a role in the amount you’ll pay for coverage.

There are opportunities to save by shopping around and comparing coverage beyond the premium, or the amount you’ll pay for coverage.

Minimum car liability insurance requirements in New Mexico

Liability coverage is required by law. If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and its passengers. If you finance or lease your car, your lender probably requires comprehensive and collision coverage

The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage, to protect you when an at-fault driver hits you and they have no coverage, or not enough coverage.

New Mexico requires bodily, property, uninsured, and underinsured coverage, according to the Insurance Information Institute. New Mexico’s minimum liability requirements are 25/50/25, which means up to $25,000 of injury protection for each person involved in an accident, up to $50,000 worth of injuries per incident, and up to $25,000 of property damages per incident. 

Best cheap car insurance in New Mexico based on credit score

Consumer Reports compiled a list of all car insurance pricing formulas from all companies in every state. It used an average single adult driver to find the best pricing in each state, and found that three companies came out on top for three different credit levels. Here are the three best companies and their average price for coverage:

*USAA is only available to military, veterans, and their families

Average premiums for seniors and teen drivers in New Mexico

The table below shows the average senior and teen drivers can expect to pay in New Mexico. Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. Most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

Data provided by Goosehead Insurance

New Mexico car insurance rates by city

Where you live impacts your premium. Those in urban areas pay more than those in rural areas. Below is the estimated average annual premium of auto insurance policies per household in New Mexico’s most populous cities:

Data from S&P Global Market Intelligence

Best car insurance in New Mexico based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. Customer satisfaction is defined by five factors: billing process and policy information; claims; interaction; policy offerings; and price. According to a 2021 survey by J.D. Power, a consumer research company that surveys customers, these are the top car insurance companies in the Southwest region (which includes New Mexico):

The following are the most popular car insurance companies in New Mexico, based on the percentage of insured New Mexico who use them:

*USAA is only for active military, veterans, and their families.

Data from S&P Global Market Intelligence

Who gets the best car insurance in New Mexico?

Those who get the best car insurance rates are going to be those who have the best credit. There are several other factors that can change the way that an insurance company will price your premium, including your age, gender, the type of car you drive, and where you live in New Mexico. 

Another way to save is to shop around — every insurance company prices policies differently, and no two policies are the same. Prices vary greatly depending on whether you get liability, comprehensive, or collision coverage.

Consider the amount of coverage and the types of coverage listed on your quote. Remember, you’re looking for the most coverage for your money. Don’t forget to look at the deductible, or the amount you’ll pay out of pocket if you get into an accident.

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