Cheap Car Insurance Companies In New Mexico

The average semiannual cost of car insurance in the state of New Mexico is $758.29. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in New Mexico across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 2/29/2024

The New Mexico car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in NM. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

New Mexico Minimum Liability Coverage

New Mexico has minimum liability coverage requirements for all drivers. This insurance coverage protects you financially in the event of an accident for which you are legally responsible. The minimum requirements in New Mexico are:

• Bodily Injury Liability: $25,000 per person and $50,000 per accident. This covers medical expenses and lost wages for others injured in an accident you cause.
• Property Damage Liability: $10,000. This covers repairs or replacement costs for any damage to other people’s property in an accident you cause.
• Uninsured/Underinsured Motorist Coverage: $25,000 per person and $50,000 per accident. This optional coverage protects you if you are in an accident caused by another driver who does not have auto insurance or does not have enough coverage.

Penalties for Driving Without Insurance in New Mexico

New Mexico state law requires all drivers to carry minimum liability insurance coverage on any motor vehicle operated or parked on public roads. Failure to comply with this law results in significant penalties.

If you are caught driving without insurance in New Mexico, you will face the following penalties:

• A fine of up to $500 for a first offense, up to $750 for a second offense, and up to $1,000 for subsequent offenses.
• Six points assessed against your driver’s license. Drivers accumulating 12 or more points within a two-year period may have their licenses suspended.
• Possible vehicle impoundment. The law allows authorities to impound your vehicle for up to 30 days for a first offense and up to 90 days for subsequent offenses. You must show proof of insurance to get your vehicle back.
• A potential insurance surcharge that could increase your premiums for the next three to five years.

In addition to these legal penalties, driving without insurance means you will have to pay for any damages resulting from an accident out-of-pocket. This could easily run into the tens of thousands of dollars and cause significant financial hardship. For this reason, it is crucial to maintain continuous auto insurance coverage in New Mexico.​

Auto Insurance Rates in New Mexico

Auto insurance rates in New Mexico are generally considered to be lower than the national average. However, rates can vary significantly depending on several factors. Drivers should shop around for the best rates from multiple insurers.

There are several reasons why auto insurance rates tend to be lower in New Mexico. First, New Mexico has a lower population density compared to most states, meaning there are fewer accidents per capita. Second, New Mexico has a lower cost of living overall, which influences insurance costs. Third, New Mexico has relatively lenient laws regarding mandatory insurance coverage, which allows for more options with lower premiums.

Still, there are many factors that affect an individual driver’s auto insurance rates. The most significant ones are age, driving history, location, vehicle type, and coverage levels selected. Teenage drivers and those with a history of violations, accidents, or lapses in coverage will see higher rates. Drivers in urban areas like Albuquerque and Santa Fe tend to pay more due to higher risk. Sports cars and luxury vehicles also command higher premiums. Finally, choosing higher liability limits and adding comprehensive and collision coverage will increase costs.

Low Cost Car Insurance Programs and Discounts in New Mexico

New Mexico drivers can find several ways to lower the cost of their car insurance. Comparing rates from different companies is the first step towards finding affordable coverage. Drivers should also ask about available discounts and programs.

Some insurance companies in New Mexico offer low-income auto insurance programs for qualifying drivers. These programs provide minimum liability coverage at reduced rates to ensure that lower-income individuals can legally drive. Eligibility is typically based on income, assets, and credit score. Coverage through these programs tends to be more limited and have higher deductibles to keep premiums affordable. However, they can help drivers meet the state’s mandatory insurance requirements.

Many insurance companies also provide discounts for good drivers, students, multiple policies, and more. Common discounts include:

• Good driver discount: Drivers with a clean driving record for several years may qualify.
• Multi-policy discount: Bundling home and auto insurance policies can save 5% to 15% on premiums.
• Student away at college discount: Students living away from home for most of the year may qualify.
• Anti-theft devices: Cars with security systems or immobilizers may save 5% to 10%.
• Defensive driving course completion: Taking an approved driving course can earn a discount.
• Multi-vehicle discount: Insuring two or more vehicles with the same company may save 5% to 25%.

New Mexico Car Insurance Statistics

New Mexico has some unique car insurance statistics that are important for drivers to be aware of. Understanding these facts can help ensure you have proper coverage and rates for your situation. Here are some key points:

• New Mexico has a relatively high uninsured motorist rate at around 20%. This means that around 1 in 5 drivers do not carry car insurance, so having uninsured motorist coverage is recommended for your own protection.
• New Mexico has a no-fault insurance system, meaning that claims are filed with your own insurance company regardless of fault in an accident. This can help speed up the claims process.
• New Mexico has relatively low minimum insurance requirements. Drivers are only required to carry $25,000 of bodily injury coverage per person, $50,000 per accident and $10,000 of property damage coverage. Many experts recommend higher liability limits.
• New Mexico’s average car insurance premiums are slightly below the national average, coming in at around $1,000 per year. Rates do vary by location within the state.
• New Mexico does not have a high-risk insurance plan like other states. This means high-risk drivers often face higher premiums from private insurers.
• New Mexico allows drivers to choose between limited tort and full tort options, which can impact how much pain and suffering coverage you have after an accident.

The 10 Largest New Mexico Car Insurance Companies

New Mexico drivers have many options when choosing a car insurance provider. Here are the 10 largest auto insurance companies in New Mexico based on premium volume according to the latest data from S&P Global Market Intelligence.

1. State Farm – State Farm has the largest market share in New Mexico at 17.5% of all auto insurance premiums written. It is known for affordable rates and a good claims process.
2. Progressive – Progressive ranks second with a 13.1% market share. It is a popular choice for its wide coverage options and simple online shopping experience.
3. Farmers Insurance Group – Farmers Insurance has a 9.4% market share in New Mexico. It offers many discounts and is known for high customer satisfaction.
4. USAA – USAA is exclusive to military members and their families. It has a 7.8% market share in the state. Customers praise its excellent customer service and financial stability.
5. GEICO – GEICO has a 7.6% market share in New Mexico. It is best known for its affordable rates, 24/7 claims service, and simple online buying process.
6. Allstate – Allstate has a 6.1% market share in the state. It offers many policy discounts and has a good mobile app for policy management.
7. Liberty Mutual – Liberty Mutual has a 4.7% market share. It is recognized for offering flexible coverage options and many discounts for good drivers.
8. Auto-Owners Insurance – Auto-Owners has a 3.2% market share in New Mexico. It focuses on personalized service and stable rates.
9. The Hartford – The Hartford has a 2.9% market share in the state. It is known for providing specialized coverage options for specific needs.
10. MetLife – MetLife has a 2.1% market share in New Mexico auto insurance. It offers many discounts and specialized coverage for older drivers.