The Best Car Insurance in New Mexico

State Farm is known across the country for its lower-than-average rates. In New Mexico, it offers competitive full coverage and minimum coverage rates for most drivers. It works with a vast network of exclusive agents catering to the specific needs of your city. Albuquerque, Espanola, Los Ranchos, Santa Fe, and Silver City are just a few of the cities in New Mexico with State Farm agents. The company earned an above-average score for customer satisfaction in the Southwest region, according to J.D. Power — just one of the reasons it’s one of our picks for the best providers of auto insurance in New Mexico.

Local and Exclusive Agents

An agent is your advocate with your auto insurance provider. Ask yours how to lower the cost of auto insurance or achieve a fair insurance claim settlement after an accident.

Local agents who live in your area can be extremely beneficial because they understand the specific factors that affect auto insurance in your city and state. They can help you find the best cheap car insurance companies in New Mexico based on where you live. For example, you’ll pay a higher premium living in a city like Albuquerque than you would in suburban or rural areas in New Mexico. However, there are still ways to save, like the discounts above.

Unlike GEICO, which is geared towards customers managing their policies online and through its app, State Farm works with a large network of exclusive agents. The benefit of working with an exclusive agent is that they possess a depth of knowledge about State Farm policies and discounts. State Farm’s exclusive agents are one reason it ranks on our list of best auto insurance providers for local service.

Competitive Average Rates

A full coverage policy from State Farm in New Mexico costs only $1,786 annually on average, while a minimum coverage policy costs an average of $490 annually.

State Farm doesn’t limit its cheap rates to drivers with a clean record. Whether you have a speeding ticket or qualify as a high-risk driver, State Farm is likely to offer some of the cheapest rates in New Mexico.

State Farm Discounts in New Mexico

State Farm offers a range of discounts that can help drivers on a budget lower their rates even further. Not every discount is available in every state. Here are the discounts available from State Farm for drivers in New Mexico:

• Anti-theft device
• Defensive driving course
• Drive Safe & Save usage-based insurance
• Good driving (claims-free)
• Multiple automobiles
• Multiple insurance policies
• Steer Clear training for young drivers
• Vehicle safety

Liberty Mutual’s history goes back over a century, but it provides all the convenience of a modern, technology-forward auto insurance company. Liberty Mutual offers online tools and numerous coverage options that make it a great option for anyone in the U.S, but its coverage options in Mexico make it especially enticing for drivers in New Mexico who cross the border frequently.

Mobile and Online Tools

If you want the convenience of doing business with your auto insurance company from anywhere, Liberty Mutual is a great option. The company offers a comprehensive online platform to request quotes and sign up for a new policy. It even provides a discount if you purchase your policy online. Its mobile app allows you to do a variety of tasks, including:

• Access ID cards
• Pay and manage bills
• File and track claims
• Add drivers
• Access and sign documents
• Talk to Liberty via chat
• Call roadside assistance

Liberty Mutual has a highly rated app, suggesting its customers are generally very satisfied with its online tools. Liberty Mutual also scores above average in the J.D. Power Digital Experience survey.² This indicates that customers are satisfied with its digital tools beyond its app, including its online account management features and quote tool.

Mexico Car Insurance

If you drive over the border between the U.S. and Mexico frequently, whether for work or pleasure, you need coverage from an authorized Mexico insurer. Liberty Mutual’s partner in Mexico, MexPro, offers customizable coverage options, as most U.S. auto insurance policies are invalid or very limited in Mexico. You can choose temporary coverage from a one-day to a one-year term with MexPro via Liberty Mutual.

Teacher Discounts

Good news for teachers in New Mexico — Liberty Mutual offers teachers these free benefits:

• Vandalism loss protection: If your vehicle is vandalized on school property or during school-related events, your deductible will be $0.
• Personal property coverage: If someone steals or damages your teaching materials or school-owned property, you will be covered for up to $2,500 per occurrence.
• Collision coverage: If someone damages your vehicle in a collision while you’re driving it on school business, your deductible will be $0.

GEICO offers the cheapest average rates in New Mexico for households with teen drivers (aside from USAA) as well as several savings opportunities, including GEICO DriveEasy. DriveEasy is offered in most states, including New Mexico. GEICO’s rates are known nationally to be cheaper than average, and it offers a range of coverage options and ways to save.

GEICO’s DriveEasy

Like most major insurers, GEICO offers an optional safe driving incentive, DriveEasy, which rewards customers for their safe driving habits. GEICO advertises that most customers will be able to save with DriveEasy, but riskier drivers may find their premiums increase. That said, it can be a great way to save on premiums if you have a teen driver on your policy, as they are generally expensive to insure.

DriveEasy is integrated into the GEICO app and tracks the following driving behaviors when you make a trip:

• Distracted driving: DriveEasy monitors how often you interact with your phone while behind the wheel. Using GPS, hands-free Bluetooth, or music streaming is not considered distracted driving unless you are interacting with the phone.
• Hard braking: Your speed of acceleration and deceleration impacts your DriveEasy score. DriveEasy favors drivers who do not suddenly increase speed or brake.
• Cornering: Drivers who do not turn corners too quickly will be awarded a higher score.
• Smoothness: DriveEasy favors drivers who are consistent, smooth drivers.

DriveEasy awards you a safe driving score and adjusts your rates monthly based on this score. The higher your score, the lower your rates.

Good Student Discount for Teen Drivers

Teens get into accidents more often than other age groups due to their lack of driving experience. In fact, the average cost of auto insurance for teens in New Mexico is $5,640 per year, which is double the average for drivers in their 30s. GEICO has a good student discount you can apply to reduce the cost of insurance for any teenagers, college students, or students under the age of 25 listed on your policy.

Full-time college or high school students who meet the requirements receive a discount on their insurance policy:

• An average grade of B or above (3.0 GPA)
• Attendance at school at least 100 miles away from car storage
• Member of approved alumni associations, colleges, universities, or student organizations

Excellent Financial Strength

Along with State Farm and USAA, GEICO has been awarded the highest possible financial strength rating of A++ from AM Best. This means it has the financial resources to pay its customers should they need to make a claim. Based on their AM Best and S&P ratings, customers should not have issues having their claims paid out by any of our reviewed providers.

USAA works exclusively with U.S. Armed Forces service members, families, and veterans. If you’re an active-duty military member or veteran, USAA provides lower-than-average car insurance rates for flexible and specialized coverage options. While not ranked officially due to its limited availability, the company has a consistently high customer satisfaction score from J.D. Power.

Savings for Active-Duty Military Members

If you live in New Mexico but you’re deployed or storing your insured car for any other reason, USAA will give you up to 60 percent off your premium. Plus, USAA offers a usage-based discount, which means you’ll pay less if you live on base and don’t drive your car that much.

Additionally, USAA has a garaging discount, so parking your car in a garage on a military installation like White Sands Missile Range (WSMR) will reduce your comprehensive coverage premium by 15 percent.

USAA also offers the following programs and discounts that apply to all drivers, military or not, on your policy:

• USAA SafePilot: SafePilot is USAA’s optional safe driving program. It uses telematics to track your driving habits through your smartphone and save you up to 30 percent on your premium.
• Safe driving: USAA’s safe driver discount kicks in after five years if you maintain a good driving record. You can also get a discount for completing an approved defensive driving or basic driver training course.
• Multi-vehicle: This discount applies when you extend coverage to two or more vehicles.
• Bundling: Adding auto insurance to your property insurance policy will save you up to 10 percent on your total premium.
• Good student: If your student driver maintains good grades, you can get a discount on your car insurance premium.
• New car: If your vehicle is less than three years old, USAA offers a discount on your auto insurance.
• Anti-theft technology: If you have an anti-theft device installed, you’ll get a discount.

Excellent Third-Party Ratings

USAA has earned consistently strong third-party ratings. Though it’s technically ineligible to be ranked on the J.D. Power customer and claims satisfaction studies because its availability is limited to military members and their families, USAA does score very highly in both surveys.

Along with GEICO and Progressive, it has the highest grade of any of our providers from the Better Business Bureau, suggesting USAA customers are generally very satisfied with its customer service.

Insurance for Everywhere

If your home base is New Mexico but you’re stationed elsewhere, your USAA auto insurance will travel with you. USAA offers auto insurance in all 50 states, Washington, D.C., U.S. territories, and select international locations, including:

• Azores
• Belgium
• Cuba
• France
• Germany
• Greece
• Guam
• Italy
• Netherlands
• Portugal
• South Korea
• Spain
• United Kingdom

Progressive is one of the largest insurance companies in the U.S. and has a solid financial strength rating, meaning that you can count on it to pay out claims that it owes. It doesn’t have the cheapest rates for most drivers in New Mexico — the only exception being for drivers with DUIs, as it comes in second in that category behind only USAA — but its rates do tend to be below average. It also offers a variety of add-on coverages to allow you to customize your policy to your needs.

Affordable Rates for Drivers With DUIs

Progressive earned a spot on our list of the best auto insurance companies for high-risk drivers, particularly for those convicted of a DUI. It offers consistently competitive rates for drivers with DUIs across the country, and the same is true in New Mexico. The only company that offers lower average rates for this category is USAA, which is only available to military-affiliated drivers.

The average cost of car insurance for New Mexico drivers with a DUI is $2,932 per year, which is 47 percent higher than the average annual cost for drivers with clean records. However, Progressive has an average annual premium of only $2,243 for drivers with a DUI, or 24 percent cheaper than the statewide average.

Accident Forgiveness

One of the perks of choosing Progressive is its accident forgiveness, which prevents your premiums from increasing after an at-fault accident. In New Mexico, drivers with an accident on their record pay an average of 31 percent more than those with clean records, so this can save you a lot of money, particularly if you’re a high-risk driver. It’s also wise to add if you have an inexperienced driver on your policy, like a teen.

Progressive offers three types of accident forgiveness:

• Small Accident Forgiveness: This benefit is automatically added to your policy as a new Progressive customer and prevents your rates from increasing after your first claim that’s less than or equal to $500.
• Large Accident Forgiveness: This is available to policyholders who have been with Progressive for at least five years and have been accident and violation-free for up to five consecutive years. With large accident forgiveness, your rates won’t increase if you file a claim, regardless of the amount.
• Progressive Accident Forgiveness: This coverage may be purchased as an add-on to your policy, regardless of how long you’ve been with Progressive, and will forgive one eligible accident per policy period.

Coverage Options

New Mexico requires liability coverage only. While you can drive with the legal minimum auto insurance, we recommend adding at least some of the following standard and optional coverage options Progressive offers:

• Rental car reimbursement
• Collision coverage
• Comprehensive coverage
• Loan/lease payoff
• Roadside assistance
• Trip interruption coverage
• Vehicle protection
• Custom parts and equipment value (CPE) coverage
• Rideshare coverage
• Disappearing deductible
• Medical payments coverage
• Personal injury protection
• Uninsured/underinsured motor vehicle coverage
• Pet injury coverage