Cheapest car insurance in New Mexico

New Mexico drivers pay an average of $385 per year for minimum coverage car insurance and $1,419 per year for full coverage, both of which are below the national average. You can get car insurance quotes from USAA and Geico as well as State Farm, Farmers, and Progressive if you’re looking for the lowest cost in New Mexico.

While finding affordable New Mexico car insurance is a priority, it’s not advisable to skimp on coverage. A car accident occurs every 11 minutes in New Mexico, based on crash data from 2019. Although car insurance is required by law in New Mexico, it is also an important consideration for financial security. Bankrate may be able help you find New Mexico car insurance that suits your needs and protects you from financial ruin after an accident.

New Mexico has the cheapest car insurance

In the search for the cheapest auto insurance in New Mexico, Bankrate’s insurance editorial team first worked with Quadrant Information Services to obtain current premium information for the largest insurance companies in the Land of Enchantment. However, the price of New Mexico car insurance is not the only consideration when you are looking for coverage. We also looked at each company’s coverages, discounts and policy features.

These companies may be worth looking at if you’re looking for the best car insurance in New Mexico but don’t want to give up solid coverage.


USAA is a good choice for New Mexico car insurance if you are either a veteran, current military member or a family member. J.D. rated the company highly for its outstanding customer service. Power, despite not being eligible for official ranking because of its eligibility restrictions. USAA offers military-focused discounts such as savings on storage and garaging of your car at a military base, and a low average minimum coverage.


Geico may be the right fit for you if you don’t qualify for USAA, but still want to get the best policy for your budget. Geico customers may appreciate the low rates and extensive discounts, such as savings for federal employees, students, and safe drivers. Geico policies are limited in terms of optional coverages. However, if you require basic coverage at a low cost, it may be worth getting a quote.

State Farm

As the largest personal auto insurer in the U.S., State Farm has established a track record for quality coverage and service. State Farm may be a good choice if you enjoy working with local agents in brick-and-mortar locations for your insurance needs. Two safe driving programs are offered by the company, which is well-known for rewarding safe drivers. Drive Safe & Save is designed for adults, while Steer Clear is geared toward drivers under 25. These programs can help you save money and teach your young driver safer driving skills.


Although Farmers’ minimum coverage may be slightly less than New Mexico’s, its full coverage is much cheaper. Farmers may be a good choice if you’re looking for a policy that is highly customizable and offers many optional coverages. You could also add ridesharing coverage, car rental reimbursement, roadside assistance, towing and roadside assistance, guaranteed value coverage, or custom equipment coverage to complete your coverage.


Progressive’s minimum coverage premium is not the most expensive on our list. However, it might be worth your time to request a quote. Progressive might offer additional savings if you prefer to manage your insurance online. Online insurance shopping can help you save money. You can get a quote online, buy your policy online, and receive paperless statements. Additional savings opportunities include being a homeowner (even if you do not insure your home with Progressive), paying in full and signing up for the Snapshot driver program.

Minimum coverage requirements for New Mexico drivers

Car insurance is legally required in New Mexico, as it is in most states. To drive legally in New Mexico, you must carry at least the following minimum limits:

  • $25,000 bodily injury liability per individual
  • $50k bodily injury liability per accident
  • Ten thousand dollar property damage liability for others

New Mexico car insurance companies are also required to offer you uninsured motorist coverage and underinsured motorist coverage in the same limits as your liability coverage, but you do have the option to reject these coverages in writing. However, over 21% of New Mexico drivers are estimated to be uninsured, so accepting these coverages could help spare you financial hardship if you are hit but an uninsured or underinsured driver.

Minimum coverage insurance is often the best option for drivers looking for cheap car insurance. Your insurance may pay for you if you cause an accident. However, minimum coverage is very low so you could end up paying a lot of out-of-pocket costs if you cause serious injuries.

You also cannot get coverage for any damage to your vehicle if you have a minimum limit. For that, you need full coverage, which adds comprehensive and collision. Your lender may require you to have full coverage if your vehicle was financed.

How to Get Cheap Car Insurance in New Mexico

New Mexico drivers have many options for cheap auto insurance. These are some tips to help you find a policy that is affordable.

  • Compare quotes: Different rating systems can lead to different quotes. Comparing quotes from different companies may help you to find the right coverage at a cheaper price.
  • Use discounts: Many companies offer discounts that can lower your premium. One of the best discounts is buying your home, condo, or renters insurance through the same company that your auto policy. Telematics discounts, vehicle safety discounts, and discounts for teen drivers are all common ways to save money.
  • Drive safely: Tickets, DUI convictions and auto insurance claims tend to make insurance companies view you as a high-risk driver, meaning you will likely pay more for insurance. Rate increases can be avoided by practicing defensive driving and maintaining a clean driving record.
  • Your deductibles can be increased: Both your collision and comprehensive coverages have deductibles if you have full coverage. If you file a claim to repair damage to your vehicle, your deductible will be the amount that you pay out-of-pocket. Your premium will be lower if you increase one or both your deductibles. However, it is important to select an amount that won’t negatively impact your finances if your claim is filed.

On average, New Mexico’s car insurance is cheaper than the national average. With a little research and a few quotes, you may be able to find coverage at a lower price.

Questions frequently asked

Which New Mexico insurance policy is best?

The best New Mexico car insurance company will vary based on each driver’s individual needs, wants and rating factors. You might be able to find the best option for you by making a list of your requirements, such as the lowest price, specific coverages or highly-rated customer services. Then, you can get quotes from multiple providers.

What is the average cost for car insurance in the United States?

In the United States, the average driver pays $1,674 per year for a full coverage insurance policy. The average premium for full coverage in New Mexico is $1,419. New Mexican drivers pay an average of $1,419. However, when it comes to the percentage of annual income spent on car insurance, New Mexico drivers pay a bit more. The average American driver spends about 2.4% of their income on automobile insurance. New Mexican drivers spend about 2.7%.

What happens if you are caught in New Mexico without insurance?

Driving without car insurance is illegal in New Mexico. You could be subject to criminal and/or civil charges if you are caught driving with no insurance. You will be responsible for any injuries and damages caused by an accident that you do not cause. You could be sued if you cannot pay.