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New Mexico’s average annual car insurance cost is $1,102.15 per year or about $92 per month, according to data from the National Association of Insurance Commissioners (NAIC). New Mexico drivers pay about $87 less than the national average, which stands at around $1,190.

The NAIC auto insurance database takes in to account policies with state minimum coverage as well as those with optional coverage like collision and comprehensive. Because car insurance costs depend on many factors, you could find your rates higher or lower than this average.

New Mexico car insurance quick facts

Picture not described

Minimum liability requirements

25/50/10

Average annual car insurance cost according to the NAIC

$1,102.15

At-fault state

In at-fault states, the driver who caused the accident pays for damages.

New Mexico state minimum car insurance requirements

In New Mexico, each driver is required to buy at least liability coverage, and you’ll see the amount of liability required written as 25/50/10. New Mexico also requires you to carry uninsured or underinsured motorist coverage, although you can opt out if you submit a written request.

Let’s break down what’s covered with this state minimum coverage.

Bodily Injury Liability

Bodily injury liability: 25/50

  • $25,000 for injuries to one person
  • $50,000 for injuries to multiple people per accident

Bodily injury liability applies to other drivers, passengers or pedestrians if you’re at fault in an accident. You want plenty of bodily injury coverage because you’ll pay out of pocket if the medical bills cost more than your insurance covers.

Property damage liability

Property damage liability: 10

  • $10,000 to repair someone else’s car or property damage

Property damage liability applies to the other driver’s car damage as well as damaged personal belongings or property like a smartphone, equipment, poles or fencing. However, New Mexico stands at the lower end of state requirements for property damage.

Uninsured or underinsured motorist

Uninsured or underinsured motorist: 25/50/10

  • $25,000 for injuries to one person in your car by an uninsured driver
  • $50,000 for injuries to multiple people in your car
  • $10,000 for your own car or property damage

    New Mexico lets you opt out of uninsured or underinsured motorists coverage, but consider keeping it for the added protection. This coverage applies to your car’s damage or injuries to you and your passengers if you get hit by a driver without proper insurance. It also applies if you’re on the receiving end of a hit-and-run.

    Optional coverage to consider in New Mexico

    Although New Mexico requires a standard level of coverage among the States, the liability limits required are low. Low coverage limits mean that you have a greater chance of paying out of pocket if medical bills or property damage cost more than your insurance will pay.

    Consider buying higher liability limits and adding optional coverage based on your budget and the protection that fits your driving needs.

    CoverageDescriptionConsider this coverage if
    Higher liability coverage limitsPays for someone else’s property damage or medical bills if you cause an accident
    • State minimum liability coverage won’t completely replace someone’s car or pay legal costs.
    • You have many assets.
    CollisionKicks in for repairing or replacing your car after an at-fault accident
    • You have a car loan, and your lender requires it.
    • You can’t cover repairing or replacing your car on your own.
    • You drive your car regularly, such as for commuting.
    • The coverage costs much less than your car’s value.
    ComprehensiveThis coverage helps you repair or replace your car after theft, vandalism, windshield cracks or severe weather damage.

    It’s important since New Mexicans experience car theft nearly twice as much as the US average.

    • Your car loan requires it.
    • You can’t cover repairing or replacing your car on your own.
    • Your area has a high risk of theft or severe weather.
    • The coverage costs much less than your car’s value.
    Personal injury protectionPays for your or your passengers’ medical bills or lost income if you get injured.

    Also, kicks in no matter who’s at fault.

    • You don’t have health insurance or have a high deductible.
    • You don’t want to rely on another driver’s insurance to pay for injuries.
    • You want protection for lost income.

    Cheapest rates by age in New Mexico

    By far, Allstate comes with the lowest rates for drivers under age 25. Its rates are also competitive for other ages, although the cheapest company switches back and forth from Allstate to Progressive.

    AgeAllstateProgressiveGeicoUSAA
    16-24$124.50$192.15$197.57$190.54
    25-34$117.84$127.73$126.33$128.80
    35-44$149.26$109.54$122.89$130.18
    45-54$80.81$105.22$141.97$118.10
    55-64$105.02$91.27$114.47

    Cheapest rates by gender in New Mexico

    Women pay as much as $25 per month less than men, depending on the company. However, Allstate rings in as the cheapest option for both genders in our analysis of car insurance costs.

    CompanyAllstateProgressiveGeicoUSAA
    Men$135.01$144.12$154.17$147.14
    Women$109.88$124.59$138.65$119.03

    Sample rates in New Mexico from major car insurance companies

    You may find Allstate as one of your cheapest options in New Mexico, ringing in $25 less than Geico in this sample. We base these costs on sample car insurance quotes from Savvy.

    CompanyAllstateProgressiveGeicoUSAA
    Rate$120.65$131.92$145.70$137.77

    Best car insurance for New Mexico

    Name-brand companies may be your best bet when you’re shopping for car insurance in New Mexico. We recommend starting with our top picks, which we vetted for you by looking at their coverage, discounts and perks like online experience.

    We also checked company ratings from J.D. Power, Better Business Bureau, AM Best and the National Association of Insurance Commissioners.

    Best value for coverage: Progressive

    Progressive

    Finder rating 4 / 5 ★★★★★

    Progressive is a solid choice if you're looking to balance coverage options and cost. This brand-name company gives choices that not every insurer does, like a lowering deductible or accident forgiveness if you go claim-free.

    You also get options to cover custom equipment installed on your car, gap or rideshare coverage. Plus, Progressive doesn't disappoint with its long list of discounts, especially for safe drivers.

    Best customer service: State Farm

    State Farm

    Finder rating 3.5 / 5 ★★★★★

    State Farm sticks to its roots with personalized support from local agents, even in the rise of a self-serve industry. State Farm continues as the No. 1 largest car insurance company, and we'd say that shows how much customers trust it.

    You'll get a range of coverage options with State Farm, including rideshare and travel expenses reimbursement. It also offers Drive Safe and Save, a program for safe drivers to track their driving and knock off up to a third of their bill. Both its main app and Drive Safe and Save app get top customer ratings.

    Best local company: AAA New Mexico

    AAA

    Finder rating 4 / 5 ★★★★★

    If you love discounts and supporting local, you could get the best of both worlds by choosing AAA New Mexico. Many customers also tout AAA's competitive insurance rates compared to national companies. Its steepest discounts are for safe driving and bundling multiple cars or policies.

    You'll also get perks galore with this company, especially with its popular roadside assistance plans. Roadside assistance perks include a three-year battery replacement warranty and car repair discounts for choosing one of AAA's network mechanics.

    Best for low mileage: Nationwide SmartMiles

    Nationwide

    Finder rating 4 / 5 ★★★★★

    SmartMiles is one of the few — and best — pay-per-mile insurance policies on the market. This unique policy sets a flat monthly rate plus a per-mile rate like five cents for every mile you drive. This type of policy is worth looking into if you drive less than 10,000 miles per year.

    Why Nationwide? This brand has a solid A+ financial rating from AM Best and decades of experience to back your claims.

    7 factors that affect car insurance rates in New Mexico

    Factors are characteristics specific to you that car insurance companies use to set how much you’ll pay for car insurance. The less risky each of your factors is the less you pay, the riskier you are the more you’ll pay. We’ll break down New Mexico’s rating factors to keep in mind.

    FactorHow it affects your rates
    Age

    Age

    How old you are is a top factor in determining your car insurance rates. With each passing year, you earn more experience on the road. More experience can equal cheaper rates. Teen drivers pay the most, but rates begin to level off around your 20’s with drivers over 50 paying the least.
    Gender

    Gender

    New Mexico takes gender into account when determining your rates. Our analysis of Quadrant data found that men under 18 pay 17% more for car insurance compared to women of the same age. But, between 31 and 45, women see rates 5% higher than men. After 45, rates differ between men and women by only 1%, with women on the higher end.
    Location

    Location

    Where you live affects your rates, including where you park your car. High theft rates, high traffic and a high number of uninsured drivers could mean higher rates.

    New Mexico vehicle theft rates stand at 427.6 vehicle thefts per 100,000 inhabitants, according to the FBI’s most recent report on vehicle theft rates. That’s the third-highest number of vehicle theft rates in a state, and well above the national average of 246 vehicle thefts per 100,000 inhabitants.

    As for uninsured drivers, 21.8% of New Mexicans on the road are uninsured. That’s the fourth-highest amount of uninsured drivers in a state according to Insurance Information Institute (III), with the national average standing at 12.6%.

    Driving Record

    Driving Record

    The better your driving record, the lower your premium. If you’re in an at-fault accident you could see rates increases from 20% to 50%. And DUI’s in New Mexico can increase your rate by around 46%. These types of violations typically stay on your record for about three years.
    Vehicle and mileage

    Vehicle and mileage

    Your car’s make, model and trim directly affect how much you’ll pay for car insurance. Things like its cost, safety ratings, the likelihood of theft and sportiness all help insurers determine its cost to insure.

    Safer and cheaper vehicles score the lowest rates, with luxury vehicles with higher repair costs resulting in higher premiums.

    And, the more you’re on the road, the more at-risk you are to get in an accident, which means higher premiums. However, according to the Bureau of Transportation, New Mexicans drive an average of 35.1 miles per day, that’s slightly below the average across the US of 36.1 miles per day.

    Credit score

    Credit score

    Your credit score is included in your credit-based insurance score which insurers use to help calculate rates. According to the Insurance Information Institute, there is a strong correlation between your insurance score and claims filings. A good credit-based insurance score could mean lower rates.

    New Mexico drivers have protections under state laws that regulate the use of your credit history when issuing car insurance policies. Credit score can’t be the only factor used to determine your rates.

    Coverage

    Coverage

    The more coverage you get and the higher limits you choose, the more protection you’ll have and the more you’ll pay in monthly premiums. And, if you opt for full coverage car insurance that includes comprehensive and collision, the amount of your deductible weighs into your costs too, higher deductibles mean lower monthly premiums.

    Do I need an SR-22 in New Mexico?

    No, New Mexico is one of a few states that don’t require an SR-22 for any violation. However, you may get other penalties for major violations such as getting your license suspended. Also, insurance companies see you as a high risk if you have violations on your driving record. You can expect higher-than-average insurance rates if you do.

    Top 10 auto insurance companies in the USA that serve New Mexico

    We pulled the top insurers by market share nationally that also serve New Mexico, according to S&P Global. Compare the companies’ ratings from three top agencies along with our Finder score.

    • The Better Business Bureau (BBB) rating scores how a business interacts with its customers, rating insurers as high as A++.
    • J.D. Power scores companies based on customer satisfaction with their price, billing, claims and customer support. The agency scores out of 1,000 points.
    • The National Association of Insurance Commissioners (NAIC) complaint index shows how a company’s number of complaints compares to similar companies. Scores lower than 1.00 show that the company sees fewer than the average number of complaints. Scores above 1.00 show more complaints than average.
    • Finder’s score rates companies based on their coverage, discounts as well as the BBB, J.D. Power and NAIC ratings.
    Provider
    BBB Rating
    J.D. Power Rating
    NAIC complaint ratio
    National market share %
    Finder score
    Go to site
    State Farm
    A+
    847/1000
    1.93
    16.2

    ★★★★★ 4/5

    Read review

    Geico
    A+
    832/1000
    1.42
    13.6

    ★★★★★ 4/5

    Read review

    Progressive
    A+
    830/1000
    1.05
    13.3

    ★★★★★ 4/5

    Get Quotes
    Allstate
    A+
    827/1000
    2.71
    10.4

    ★★★★★ 4/5

    Read review

    USAA
    A+
    884/1000
    1.9
    6.3

    ★★★★★ 4/5

    Get Quotes
    Farmers
    A-
    820/1000
    1.64
    4.9

    ★★★★★ 4/5

    Read review

    Liberty Mutual
    A+
    827/1000
    2.2
    4.7

    ★★★★★ 4/5

    ;

    Get Quotes
    Nationwide
    A+
    814/1000
    2.08
    2.3

    ★★★★★ 4/5

    Read review

    Travelers
    A+
    820/1000
    3.28
    2

    ★★★★★ 4/5

    Read review

    Auto Club Exchange
    A+
    NR
    NR
    1.4

    ★★★★★ 4/5

    Get Quotes

    Which city has the cheapest car insurance in New Mexico?

    Of New Mexico’s largest cities, Farmington has the cheapest rates and Albuquerque has the most expensive car insurance rates. Albuquerque drivers could face rates 3 times more than Farmington drivers.

    Because drivers in large cities are considered at a higher risk for accidents than people who live in suburbs or rural areas, these urban motorists tend to pay more for their coverage. You may see higher rates if you live in Albuquerque, which has more than half a million people, than out in Gallup, with its 22,000 residents or Silver City with 10,000.

    Car insurance quotes in Albuquerque

    CompanyAnnual car insurance rate
    Allstate$825
    Farmers$1513
    Metromile$817
    Progressive$1024
    Geico$954

    Car insurance quotes in Rio Rancho

    CompanyAnnual car insurance rate
    Allstate$727
    Farmers$1442
    Metromile$759
    Progressive$909
    Geico$769

    Car insurance quotes in Clovis

    CompanyAnnual car insurance rate
    Allstate$502
    Farmers$1078
    Metromile$589
    Progressive$594
    Geico$528

    Car insurance quotes in Santa Fe

    CompanyAnnual car insurance rate
    Allstate$552
    Farmers$1214
    Metromile$721
    Progressive$844
    Geico$693

    Car insurance quotes in Farmington

    CompanyAnnual car insurance rate
    Allstate$471
    Farmers$948
    Metromile$591
    Progressive$633
    Geico$548

    Compare car insurance providers in New Mexico

    Name Product Gap insurance Homeowner discount Telematics Has an app? Available states
    AARP Auto Insurance Program from The Hartford
    Yes
    Yes
    TrueLane®
    No
    All 50 states
    Enjoy low rates for mature drivers, plus perks like new car replacement and lifetime repair guarantees. Only for drivers over age 50.
    The Zebra
    Yes
    Yes
    Yes
    Yes
    All 50 states
    Progressive
    loan/lease coverage
    Yes
    Snapshot
    Yes
    All 50 states & DC
    Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
    Pretected
    Yes
    Depends on provider
    No
    No
    All 50 states
    Get your most compatible insurance options via a "smart matching" method aimed at finding you value.
    USAA
    No
    Yes
    SafePilot
    Yes
    All 50 states & DC
    Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
    Branch
    Yes
    No
    Yes
    Yes
    AZ, CO, IL, IN, MD, MO, OH, OK, TX and WI
    Benefit from this online-based startup’s steep savings and convenient online quotes and claims.
    Quinstreet - Insure.com
    Quinstreet - Insure.com
    Yes
    Depends on provider
    Depends on provider
    Depends on provider
    All 50 states
    Savvy
    Yes
    Depends on provider
    No
    Yes
    All states & DC
    Get quotes in 30-seconds from 100+ companies, and save an average of $800 or more per year. Requires online login to your existing insurance.
    Liberty Mutual
    Yes
    Yes
    RightTrack
    Yes
    All 50 states & DC
    Earn free accident forgiveness after five years claims-free and customize your policy anytime.
    Elephant
    loan/lease coverage
    Yes
    No
    No
    GA, IL, IN, MD, OH, TN, TX, VA
    Get a great deal online with steep discounts and some of the highest liability limits available.
    Allied
    Yes
    Yes
    Nationwide SmartRide
    No
    AZ, CA, CO, DE, FL, GA, ID, IL, IN, IA, KS, MD, MI, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, PA, SC, SD, TN, TX, UT, VA, WA, WI& WY
    Finding the right auto insurance doesn’t have to be confusing. Allied Insurance has a network of independent agents to help you get customized coverage for your unique needs.
    AAA
    Yes
    Yes
    No
    Yes
    Alaska, Arizona, California, Montana, Nevada, Utah & Wyoming
    Member benefits extend beyond car insurance to offer discounts, bike coverage and more. For drivers in Alaska, Arizona, California, Montana, Nevada, Utah & Wyoming.
    Sigo Seguros
    Sigo Seguros
    No
    Yes
    No
    Yes
    Texas
    Sigo Seguors is an online-based car insurance company catering to the Spanish-speaking community. Texans can get a free quote and sign up online in minutes.
    Commercialinsurance.net
    Commercialinsurance.net
    Yes
    Yes
    Yes
    Yes
    All states except AK & HI
    loading

    Compare up to 4 providers

    Car insurance for high-risk drivers in New Mexico

    If you have trouble finding coverage or were denied coverage because you’re a high-risk driver, the Western Association of Automobile Insurance Plans (WAAIP) can help.

    WAAIP assigns you an affordable provider who won’t deny you based on risk. Any additional risk you pose to the insurer is spread across the WAAIP network.

    Consequences of a DUI

    New Mexico is working to minimize drunk driving within its borders, using both educational initiatives and strict enforcement of the law to deter people from driving when they shouldn’t. Here are the consequences for driving impaired in New Mexico:

    1st offenseDriver’s license suspended for one yearMaximum $500 fineCommunity service$65 BAC test feeCost of court-ordered screening and treatment
    2nd and 3rd offenseDriver’s license suspended for two to three yearsMaximum $1,000 fineUp to 364 days in jail. Mandatory 96 hours to 30 days Community service$65 BAC test feeCost of court-ordered screening and treatment
    4th and subsequent offensesDriver’s license suspended for one yearMaximum $5,000 fineMandatory six months in jail with jail time of up to 18 months$65 BAC test feeCost of court-ordered screening and treatment

    Aggravated DUI laws

    An aggravated DUI tends to carry harsher penalties, and that’s especially true in New Mexico.

    • First offense. Additional mandatory 48 hours in jail.
    • Second offense. Additional mandatory 96 hours in jail.
    • Third offense. Additional mandatory 60 days in jail.

    New Mexico considers repeat offenders to be at high risk for committing the crime again after they’re released, so these drivers are often required to complete additional drug testing and treatment programs.

    What happens after a car accident in New Mexico?

    Car accidents can be unsettling and scary, even if you’re in a small fender bender. Stay calm and follow these steps to keep your process as simple and safe as possible.

    1. Safety first. Check the people around you for injuries and your surroundings for any additional potential dangers. If someone is injured or you see danger, call 911 right away. If not, it’s still usually a good idea to inform the local police of what’s happened as quickly as possible. If you’re blocking the road and feel comfortable, move your car out of the way.
    2. Exchange information. Everyone involved in the accident should collect information like names, driver’s license numbers, addresses and cell phone numbers. Also write down information about all car’s makes and models and insurance policy.
    3. Notify your insurance agent. Call your insurance company before you leave the scene. Tell them what’s happened, and ask what additional steps you might have to take.
    4. Document the scene. Take pictures of the accident from all angles, especially the areas that got damaged. Take down the names of police officers and any potential witnesses to better protect your claim.
    5. Share your information with law enforcement. You’re required to report any accidents to the authorities.

    In New Mexico, the driver at fault pays for damage

    New Mexico is an at-fault state, meaning that the driver who causes the car accident pays for the damage. Your insurance company and legal authorities will figure out who’s at fault, based on the circumstances.

    However, New Mexico also considers whether both drivers are partially at fault under its pure comparative fault law, according to the legal website Nolo. Under this law, both drivers pay for the percentage of damage that they cause.

    For example, if you’re 80% responsible for an accident, your insurance pays 80% of the other driver’s damages. The other driver’s insurance also pays 20% of your damages.

    When should I report an accident to the authorities?

    The general rule of thumb is that when property damages exceed $500, or whenever someone is injured, you should let the police know. If another driver insists on involving police, you’re required to remain on the scene until the officers arrive and tell you it’s OK to go — otherwise you can potentially be charged with fleeing the scene of an accident.

    Bottom line

    With New Mexico’s mandatory insurance laws and a relatively high risk of encountering uninsured drivers, at least the bare minimum coverage is necessary to get on the road legally. It’s likely you can find car insurance for lower than the national average, and with the right tools and tricks, you can narrow down the best insurance rates you’re eligible for.

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