Car insurance in New Mexico

Posted on June 8, 2017

Here are some recent facts, stats, rates and state laws pertaining to car insurance in the state of New Mexico. Read on to learn how to find the best New Mexico car insurance at the lowest possible rates.

New Mexico Minimum Liability Coverage

In the state of New Mexico, the minimum amount of auto insurance required for each owned vehicle is $25,000 in Personal Injury Protection (PIP), $50,000 of insurance against injuries to others, and $10,000 in coverage against property damage. So New Mexico state law mandates a total of $85,000 in liability coverage for each vehicle on the road. Insurance carriers refer to the minimum auto insurance coverage in New Mexico as 25/50/10.

Penalties for Driving Without Insurance in New Mexico

Drivers in New Mexico must provide proof of insurance coverage at the time they register their vehicles. This means that if you drive without insurance, you are also driving an unregistered vehicle. Nonetheless, roughly twenty-six percent (26%) of vehicle owners in the state of New Mexico are driving uninsured vehicles. New Mexico has the second highest rate of uninsured vehicles in the whole United States, according to reports from insure.com.

Drivers pulled over in vehicles that do not have the minimum liability insurance are subject to fines of anywhere from $300 to $1,000, and/or 90 days to 3 months in jail, along with suspended licenses until insurance is obtained.

The New Mexico Mandatory Financial Responsibility Act states that an owner of an uninsured vehicle must return the vehicle registration and the license plate to the Motor Vehicles Department within ten days of receiving the Notice of Suspension of Registration letter, or criminal penalties may follow.

Auto Insurance Rates in New Mexico

The average annual insurance premium for passenger cars in the state of New Mexico was $1,277 in 2016, a bit lower than the national average of $1,347. According to reports from Top50States.com, New Mexico’s relatively low premiums may have something to do with the state’s low population density, low crime, high median age, strong economy and mild climate. The premiums would probably be even lower of not for the state’s unusually high rate of uninsured vehicles.

Low Cost Car Insurance Programs in New Mexico

There are a number of different ways for vehicle owners in New Mexico to cut car insurance costs to the minimum. One way is to pay off your annual premium all at once, rather than monthly. Another tactic is to increase your deductible amount. Also helpful is buying certain types of vehicles, such as makes and models rarely stolen in your area, or cars with permanently installed safety features. These are all valid ways to lower your premiums.

However, experts agree that the best way to take a big chunk off your annual rates is to qualify for every possible discount. Drive safely and earn a Good Driver discount. Get good grades and earn a Good Student discount. Seniors 55 and above can get a defensive driving course discount. Other programs offered by most carriers include multiple policy discounts and multiple auto discounts. Call around and compare discounts.

Obtaining Auto Insurance Quotes in New Mexico

According to online consumer reviews, popular car insurance carriers in New Mexico include Allianz, Ameriprise, AIG, American National, Auto Owners Insurance, Geico and West Bend Mutual. Start collecting free quotes by phone or online. Then factor in all of the low cost options available to you. Doing this just once can save you hundreds of dollars a year in car insurance.

New Mexico Car Insurance

Here’s how drivers in New Mexico can reduce their rates on New Mexico car insurance. Also included are many interesting facts about the state of New Mexico.

Simply scroll down for all the information you need pertaining to car insurance in the state of New Mexico. Find all the deals and discounts that are available to you.

Read about what kinds of car insurance coverage New Mexico drivers need. Scan a list of the 10 largest car insurance companies in New Mexico, and a list of the 10 largest car insurance companies in America. See New Mexico poverty data, unemployment rates, population counts, median incomes, and other demographic influences on car insurance rates in the state of New Mexico.

Compare your premium costs to the statewide average annual premium rate for New Mexico car insurance. See where New Mexico ranks among states in car insurance rates. You can even compare average rates from the four cheapest and the four priciest zip codes in the state of New Mexico.

Here’s how to lower your premium rates on New Mexico car insurance.

New Mexico Car Insurance Statistics

Although the state of New Mexico ranks 1^st in alcohol related car wrecks, it ranks only 25^th in crash fatalities.

New Mexico is one of America’s poorest states. The unemployment rate in New Mexico is 6.7 percent, way above the national average unemployment rate of 4.4 percent. In fact, the state of New Mexico has the nation’s highest rate of unemployment. The poverty rate in New Mexico is 20.4 percent, again quite a lot higher than the national average poverty rate of 13.5 percent. In fact, more than one in five residents of New Mexico live at or below the poverty line.

New Mexico ranks 36^th among states in terms of total residents. The state’s population is just over 2 million, according to a recent census bureau estimate. The median resident age of the people of New Mexico is about 37.4 years.

A recent report indicates that the statewide average annual premium rate for a car insurance policy in New Mexico was about $1,253, comfortably lower than the average car insurance rate for all of America, which was around $1,355 at the time. New Mexico ranks in the bottom half among states in terms of the average cost of car insurance.

A group of statisticians from the Insurance Research Council recently studied New Mexico drivers. As it turns out, 21.6 percent of vehicles on the roads of New Mexico are uninsured. Among states, New Mexico has the 4^th highest rate of uninsured drivers.

The Largest New Mexico Car Insurance Companies

When it comes to choosing a carrier to write your New Mexico car insurance policy, you opt for one of the major companies, or maybe select a smaller, regional carrier. You need to figure out which company to choose. Here is a list of the largest car insurance companies in America, followed by a list of the largest car insurance companies in New Mexico.

According to researchers, the ten largest car insurance companies in America are 1) Allstate Insurance, 2) State Farm Insurance, 3) Geico, 4) Progressive Insurance, 5) Nationwide Group, 6) AAA, 7) Liberty Mutual Insurance, 8) 21^st Century Insurance, 9) GMAC, and 10) AIG, in that order. Companies are ranked by the total dollar amount of written premiums per year.

Shown below is another list of the ten largest car insurance companies in New Mexico. These companies were also ranked by the total amount of direct annual premiums written, which indicates each company’s total market share in the state of New Mexico.

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Group	$223,332	19.93
2	Farmers Insurance Group	$161,604	14.42
3	Berkshire Hathaway Insurance	$126,092	11.25
4	Progressive Insurance Group	$110,679	9.88
5	Allstate Insurance Group	$96,312	8.59
6	USAA Group	$92,738	8.28
7	Liberty Mutual Insurance	$56,335	5.03
8	The Hartford Insurance Group	$41,509	3.7
9	Sentry Insurance Group	$40,866	3.65
10	Loya Insurance Group	$25,517	2.28

As you can see, State Farm Insurance, Farmers Insurance, and Berkshire Hathaway are the most popular car insurance companies in New Mexico, claiming nearly one out of five car insurance policies sold in the state. This is just to give you some idea. There is essentially no such thing as The One Best New Mexico Car Insurance Company.

Cutting Costs on New Mexico Car Insurance

In order to reduce New Mexico car insurance rates as much as possible, drivers should read consumer reviews, compare online quotes, and actively seek out every possible discount. These are good ways for New Mexico drivers to really lower their annual premiums.

It is wise to read consumer reviews from at least half a dozen New Mexico car insurance companies. Studying consumer complaints is actually a good start to helping you choose the right car insurance policy. It goes almost without saying that all car insurance companies receive some number of negative online reviews. Read them carefully, to gather some idea of the overall customer experience.

Then make a list of the New Mexico car insurance companies you like best, and visit the website of each company you chose, to obtain online quotes. Online quotes can be compared not only between car insurance companies, but also between zip codes within the state of New Mexico. You might try typing in your home zip code, your work zip code, and your school zip code, for instance.

Certain discounts will be automatically applied to your online quote. Other discounts may be available just by asking. Find the discounts page on every New Mexico car insurance website you visit. If you need to, you can even call an agent to inquire about discounts. When it comes to discounts on car insurance, you really need to be proactive about it.

Comparing quotes and snagging discounts are effective ways to reduce your rates on New Mexico car insurance.

What Types Of Car Insurance Do New Mexico Drivers Need?

According to insurance laws in New Mexico, drivers must purchase car insurance coverage for the amounts of at least $25,000 for bodily injury to others, $50,000 in per-accident coverage, and $10,000 to cover the cost of property damage. However, it usually turns out that state minimum coverage requirements are not high enough to cover the car repairs and/or medical bills that result from most auto accidents. That’s why United States insurance experts recommend coverage amounts of $100,000 for personal injury protection, $300,000 against bodily injury to others, and no less than $50,000 to pay the cost of property damage.

New Mexico drivers might also want to buy the same coverage amounts in uninsured and underinsured motorist insurance (UMI). Not only does New Mexico have the 4^th highest rate of uninsured drivers, but even vehicles in New Mexico that do have insurance tend to be underinsured, because most drivers only buy the state-mandated minimum coverage.

Drivers in New Mexico can also purchase comprehensive and collision coverage. This will cover the cost of unfortunate events of many kinds, such as collisions, animal damage, flooding, wildfires, falling trees, flying objects, vandalism, and car theft, to name a few.

10 Surprising Facts About New Mexico

Roughly 3 out of 4 roads in the state of New Mexico are unpaved.
The city of Santa Fe was founded in 1607, and is the 2^nd oldest current city in America.
In New Mexico, it is illegal to dance while wearing a Sombrero.
The city of Las Cruces holds the world record for the largest enchilada.
The state of New Mexico has more chili peppers than all other states combined.
Smokey the Bear was invented in new Mexico, some time around 1950.
There are more livestock than there are people in New Mexico.
The World Shovel Race Championship is held each year in Angel Fire, New Mexico.
Albuquerque, New Mexico is the hot air balloon capital of America, with more than 300 local hot air balloons coloring up the bright blue sky.
Noteworthy people from New Mexico include Neil Patrick Harris (TV actor), Clyde Tombaugh (the man who discovered Pluto), Conrad Hilton (hotel chain founder), Edwin Land (inventor of the polaroid camera), and Billy the Kid (outlaw).

Best And Worst Zip Codes For New Mexico Car Insurance

New Mexico car insurance premiums change between zip codes, due to the differences in population density, unemployment statistics, poverty rates, resident median ages, median income levels, crime rates, and the percentage of uninsured drivers on the roads.

Here is a list of the four priciest zip codes in the state of New Mexico to buy car insurance. Annual premium rates in these Albuquerque neighborhoods can range from about $1,170 to around $2,150.

Zip Code	Pop Density	Unemployed %	Poverty %
87121 (Albuquerque)	307	11.80%	25.40%

This Bernalillo County zip code is home to more than 78,000 people. The unemployment and poverty rates here are high even for New Mexico, whose rates are already high compared to other states.

Zip Code	Pop Density	Unemployed %	Poverty %
87105 (Albuquerque)	621	12.10%	28.40%

This neighborhood has a population exceeding 58,000. The unemployment rate in this zip code is aiming toward twice the 6.7 percent state average. The poverty rate is also higher than the state average of 20.4 percent.

Zip Code	Pop Density	Unemployed %	Poverty %
87101 (Albuquerque)	0	0%	0%

The is no demographic information for this zip code. However, this neighborhood as one of the four most expensive zip codes to buy New Mexico car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
87102 (Albuquerque)	3,058	9.50%	35.60%

How sobering it is that more than one third of the residents of this neighborhood live at or below the poverty line. The unemployment rate is also high. This zip code may have a higher than average percentage of uninsured drivers, due to the low income level of the population. Thus, the higher than average rates for New Mexico car insurance.

Now compare the New Mexico zip codes above to the neighborhoods shown below. These are the four cheapest zip codes (on average) in the state of New Mexico to buy car insurance. Yearly premiums in these neighborhoods can run from about $775 to around $1,825.

Zip Code	Pop Density	Unemployed %	Poverty %
88310 (Alamogordo)	87	10.60%	19.70%

More than 37,000 people live in this Otero County neighborhood, whose famous local landmark is a pristine desert called the White Sands of Alamogordo. The unemployment rate is above the state average here, although the poverty rate is slightly below the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
88330 (Holloman AFB)	2,915	8.90%	14.20%

Roughly 4,000 people inhabit this Otero County Air Force base. The median resident age in this neighborhood is 22.3 years, more than 15 years below the state average. The poverty rate is also quite a bit below the state average, although unemployment is slightly high. Military personnel are considered to be safer drivers, at least in the eyes of auto insurance underwriters. People who work at the base are likely to get at least an occupational discount on New Mexico car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
88045 (Lordsburg)	0	13.80%	22.30%

This zip code is located in southern New Mexico, about 20 miles east of the Arizona border. Lordsburg is home to fewer than 4,000 people. Unemployment and poverty rates are above state average in this neighborhood. However, the population density is virtually non existent on this endless stretch of desert.

Zip Code	Pop Density	Unemployed %	Poverty %
88020 (Cotton City)	0	4.50%	24.60%

Cotton City has a lot of nerve calling itself a city. This Hidalgo County zip code is home to only about 400 people, and the population density is negligible.

Overall, the state of New Mexico is home to 427 zip codes in 33 counties containing 348 cities, from Alamogordo to Williamsburg and everywhere in between. Clearly, there is a difference of around $400 in annual premium rates between the cheapest and the priciest zip codes to buy car insurance in the state of New Mexico.

by admin