Compare Cheap Auto Insurance in New Mexico

• In New Mexico, the average cost of full coverage auto insurance is $1,997 per year. The average cost of minimum coverage is $833 per year.
• USAA offers the cheapest policies across categories and driver profiles, but its availability is limited to the military community. GEICO and State Farm also offer lower-than-average rates in several categories.
• State Farm has some of the highest customer satisfaction third-party ratings in New Mexico.

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• Cheapest full coverage auto insurance in New Mexico: USAA ($1,078 annually) and GEICO ($1,654 annually)
• Cheapest minimum coverage: USAA ($378 annually) and State Farm ($602 annually)
• Cheapest for teens: USAA ($3,084 annually) and GEICO ($3,596 annually)
• Cheapest with a speeding ticket: USAA ($1,247 annually) and State Farm ($1,917 annually)
• Cheapest with an at-fault accident: USAA ($1,521 annually) and State Farm ($2,038 annually)
• Cheapest with a DUI: USAA ($2,035 annually) and Progressive ($2,242 annually)
• Cheapest with low credit: USAA ($1,817 annually) and Nationwide ($1,891 annually)

With an average annual cost of $1,247, USAA offers the most affordable premiums for drivers with a speeding ticket in New Mexico. This is 47 percent less than the statewide average of $2,146. State Farm is next cheapest, with an average annual cost of $1,917. This is 11 percent less than the statewide average. If you’re caught speeding in New Mexico, expect your auto insurance premium to increase by about eight percent.

When it comes to customer and claims satisfaction, USAA has the highest third-party ratings of all our cheap providers in New Mexico. However, its CRASH Network Insurer Report Card grade is the lowest of all providers, suggesting that collision repair shops have raised questions about its claims practices. Although Farm Bureau is not included as part of the J.D. Power Customer and Claims Satisfaction surveys, its B+ score from the CRASH Network is the highest among our cheap New Mexico providers, indicating a claims process that is more favorable for customers.

• Bundle multiple policies: Most auto insurance providers offer discounts for purchasing more than one policy. Common combinations include auto insurance and home insurance bundling, but many providers offer extensive bundling options–including pet insurance, classic car insurance and motorcycle insurance.
• Apply safe driver discounts: Many providers offer safe driving incentive discounts. These include no-claims discounts, which can lower your rates if you haven’t claimed on your policy within a certain number of years. They can also include telematics discounts, which monitor your driving (such as brake speed and phone usage) and reward safe driving habits with savings.
• Increase your deductible: Increasing your deductible means your premium payments will be lower. However, it will increase the out-of-pocket amount you need to pay if you do have an accident before your insurance policy pays out.
• Consider low mileage discounts: If you don’t drive often, find a provider that offers low mileage discounts. Some insurers will only charge you for the miles you drive, creating opportunities for savings.
• Maintain a clean driving record: Insurance premiums increase significantly for drivers with high-risk profiles. One of the best ways to keep your auto insurance rates low is to practice safe, defensive driving and maintain your clean driving record.

Auto insurance rates can vary significantly by location, even within a state. Among the larger cities, Las Cruces offers some of the lowest auto insurance rates in New Mexico. Rates are higher in Albuquerque and Rio Rancho.

New Mexico requires all drivers to carry property damage and bodily injury liability coverage, which pay for the other party’s medical costs and property damage if you cause an accident. The legal minimum coverage limits are:

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

Though these figures represent the legal minimum limits in New Mexico, for most drivers minimum coverage car insurance is not enough to cover the cost of an accident. It’s wise to raise your limits and add coverages like uninsured/underinsured motorist (UIM), collision and comprehensive to your policy.

New Mexico has the highest rate of uninsured drivers of any state in the United States — one in four drivers does not carry auto insurance.⁴ If you’re involved in an accident with a driver who doesn’t have insurance or whose limits are too low to cover your damages, UIM will pay for your injuries and other losses. It’s wise to add to your policy, with limits as high as your own liability limits.

We analyze average premiums in New Mexico for full and minimum coverage for good drivers with good credit as well as various driver profiles, including those with DUIs, accidents, low credit and teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $50,000 per accident
• Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
• Comprehensive and collision: $500 deductible