The Cheapest Auto Insurance in New Mexico in 2023

New Mexico is smack dab in the middle when it comes to average auto insurance costs — the 22nd-cheapest state for car insurance in the U.S. All vehicle owners in the state are required to have at least $25,000 per person and $50,000 per accident in bodily injury liability insurance, as well as $10,000 worth of property damage coverage.

The cheapest car insurance company in New Mexico is GEICO, with an average monthly premium of $55, according to Compare.com data. However, car insurance rates vary based on a number of personal and policy-related factors. Let’s see which companies tend to offer the best rates to New Mexico drivers like you.

Key Takeaways:

• New Mexico’s average car insurance rates are 13% cheaper than the national average.
• GEICO, State Farm, and Central Insurance are the three cheapest companies for the average New Mexico driver.
• Albuquerque is the most expensive city for car insurance in New Mexico.

New Mexico’s Cheapest Car Insurance Companies

While the average monthly cost of car insurance in New Mexico is $112, it’s possible to find a less expensive rate. You can see which car insurance companies in New Mexico have the cheapest average monthly premiums in the table below:

GEICO is the cheapest car insurance company in New Mexico, according to our research. The company’s average rate is just $55 per month in New Mexico — less than half the statewide average. However, GEICO may not be the cheapest insurer for every New Mexico driver.

“Insurance companies consider many factors to evaluate risk, including age, driving history, credit score, and the type of vehicle,” says Amanda Moss, a licensed agent with A Plus Insurance, “so car insurance premiums are different for every individual.”

In the following sections, you’ll see which car insurance companies have the cheapest rates for several demographics and driver types.

The Average Cost of New Mexico Car Insurance

New Mexico’s average rates are roughly 13% cheaper than the nationwide average of $129 per month. The state also has much lower average rates compared to its neighbors.

You can see how the average cost of car insurance in New Mexico compares to average rates in other states in the region in the table below.

New Mexico has one of the lowest population densities of any state, which contributes to the low cost of car insurance. However, data from the Insurance Information Institute (Triple I) shows that New Mexico has one of the highest rates of uninsured drivers in the country — which means statewide rates may not be quite as cheap as they could.

That said, a wide variety of factors contribute to average rates, so there’s not one reason why New Mexico’s rates are cheaper (or more expensive) than others.

Cheapest Car Insurance Rates for State-Minimum Insurance: GEICO

Car insurance is required by law in New Mexico, but the amount of coverage you choose will affect your premium. A minimum-coverage policy is typically the cheapest type of car insurance you can get because it offers the least amount of protection — typically just basic liability coverage.

You can see which car insurance companies are the cheapest for minimum coverage in New Mexico in the table below:

Our rate data shows that GEICO is the cheapest insurer for minimum coverage in New Mexico, with an average premium of just $32 per month. In addition to having low rates, GEICO also offers a variety of car insurance discounts that can further reduce your premium.

But many drivers — including everyone with a car loan or lease — purchase more coverage than just basic, state-mandated liability insurance. So, let’s take a look at how rates differ for drivers who want greater protection.

Cheapest Car Insurance Rates for Full-Coverage Insurance: GEICO

Full-coverage car insurance is an optional policy that provides more protection than minimum coverage. A typical full-coverage policy includes collision and comprehensive insurance, as well as liability.

A full-coverage policy can be beneficial for many drivers because it covers your vehicle’s repairs after an at-fault accident or a qualifying “non-collision incident,” such as theft, fire, and weather-related damage. But because full coverage provides more comprehensive protection, it’s typically more expensive than minimum coverage.

These five insurers have the cheapest full-coverage insurance premiums in New Mexico:

GEICO has the cheapest overall full-coverage insurance rates for drivers in New Mexico. Its average full-coverage premium is just $77 per month, which is about 51% less than the statewide average. GEICO typically offers relatively basic car insurance coverage — with few options for customization — but you can often save a lot of money with the company’s wide array of discounts.

Compare New Mexico Auto Insurance Rates by Age

Age is one of the most important factors affecting car insurance rates. The amount of driving experience you have, as well as accident rates among different age groups, can both contribute to the cost of car insurance. In general, young drivers pay the highest rates, but most drivers see their premiums drop over time (assuming you maintain a clean record).

Let’s take a look at how rates differ among different age groups in New Mexico.

Cheapest car insurance for New Mexico teens: GEICO

Newly licensed teenagers typically pay the highest car insurance rates of any age group. Data from the Triple I shows that drivers between the ages of 16 and 19 are more likely to cause an accident than any other age group. Teens are also most likely to crash within the first few months of having a license, which increases their rates even more.

Luckily, car insurance rates typically begin to decrease around age 25.

Let’s take a look at which car insurance companies in New Mexico have the lowest rates for 18-year-old drivers, sorted by cheapest liability-only rates:

GEICO has the cheapest car insurance for teens in New Mexico, with an average rate of $97 per month for liability coverage and $217 for full coverage. The popular insurer also offers several discounts that young drivers might be able to take advantage of, including savings for smart students, wearing a seat belt, insuring a vehicle with certain safety features, and completing an approved driver’s education course.

Cheapest car insurance for New Mexico seniors: GEICO

Car insurance rates typically get cheaper as you get older — often hitting their lowest point around retirement age. Rates might drop even further after you retire, since retirees tend to drive less than they used to.

The table below shows which car insurance companies have the cheapest rates for 65-year-old drivers in New Mexico:

Seniors who’re looking for the cheapest rates in New Mexico should consider getting a quote from GEICO. The insurer is the cheapest option for New Mexico seniors, with an average rate of $35 per month for minimum coverage and $78 for full coverage. GEICO also offers several car insurance discounts that could help seniors get an even lower rate.

Compare New Mexico Auto Insurance Rates by Driving Record

Out of all the car insurance rating factors that affect premiums, your driving record is one of the most important. Drivers with a clean record usually pay the lowest rates, while those with a history of traffic violations or accidents typically pay more.

Let’s take a look at how much your driving record affects car insurance rates in New Mexico.

Cheapest car insurance for good drivers in New Mexico: GEICO

Good drivers who have a clean record and no recent history of tickets or accidents often pay the lowest car insurance premiums of any group. That’s largely because drivers with a clean record are the least risky to insure and often qualify for special car insurance discounts.

The table below shows which car insurance companies in New Mexico have the lowest rates for drivers with no accidents or tickets:

GEICO’s trend as the cheapest insurer continues, with average premiums for good drivers at just $32 per month for liability-only insurance and $77 for full coverage. The company also offers a 22% discount for drivers who’ve been accident-free for at least five years.

You can also enroll in GEICO’s DriveEasy program, which uses telematics to track your driving habits and rewards you with a lower rate if you demonstrate safe driving.

Cheapest car insurance in New Mexico after a ticket: Central Insurance

Getting a speeding ticket can cause your car insurance premium to go up. The specific rate increase will depend on your insurance company and other factors, but the average driver sees their rates increase by 37% after a single ticket, according to Compare.com data.

Let’s take a look at the cheapest car insurance companies in New Mexico for drivers with a speeding ticket:

We found Central Insurance to have the lowest rates for New Mexico drivers with a speeding ticket. Its average cost after a speeding ticket is just $37 per month for liability-only policies and $98 for full coverage.

Cheapest car insurance in New Mexico after an accident: State Farm

Your car insurance premiums will increase significantly if you get into an accident. The average driver sees their rates increase by 44% after just one accident, according to Compare.com data. However, how much your rates increase might also depend on who was responsible and the severity of the crash.

We’ve broken down which car insurance companies have the cheapest rates for New Mexico drivers with one at-fault accident in the table below:

Breaking GEICO’s run as the cheapest company, State Farm comes in as the cheapest insurer for New Mexico drivers with an accident. Its average premium for this group is $50 per month for basic liability policies and $130 per month for full coverage.

Central Insurance also has low full-coverage rates, with an average premium of $135 per month for drivers with a single accident. GEICO is another cheap option for minimum coverage — tied with State Farm for the most affordable liability insurance.

Cheapest car insurance in New Mexico after a DUI: State Farm

A DUI conviction can have a significant effect on the cost of your auto insurance policy. The average driver sees their rates nearly double after a DUI, according to Compare.com data. If you get a DUI in New Mexico, you will also face other consequences, including fines, court costs, potential jail time, and revoked driving privileges.

But that doesn’t mean you’re stuck with sky-high rates. The table below features the cheapest New Mexico car insurance companies for drivers with a DUI:

State Farm has the lowest average rates for New Mexico drivers with a DUI conviction. Its average premiums for drivers with a DUI are just $52 per month for liability-only insurance and $105 for full coverage. That’s only a small increase compared to State Farm’s average rate for good drivers — $41 and $97 per month for liability-only and full-coverage policies, respectively.

The Cheapest Cities for Car Insurance in New Mexico

Car insurance rates can vary significantly by location. City-specific factors like population density, accident rates, and vehicle thefts can all affect the auto insurance costs in a specific ZIP code.

Here are the cheapest cities in New Mexico for car insurance, based on Compare.com data:

Albuquerque is the most populous city in New Mexico, and it also has the highest car insurance rates in the state. Le Cruces and Rio Rancho are the second- and third-largest cities, respectively, but they each have much lower rates than Albuquerque.

New Mexico’s capital and fourth-largest city, Santa Fe has the cheapest premiums on our list. The average cost of car insurance in Sante Fe is just $58 per month — much lower than Albuquerque’s $93 monthly rate.

5 Ways to Get Cheap Car Insurance in New Mexico

New Mexico has more affordable car insurance premiums than many other states, but there are still several ways to further reduce your costs.

Here are five tips to help you get cheaper car insurance in New Mexico:

• Increase your deductibles: If you have a full-coverage car insurance policy, choosing higher deductibles for collision and comprehensive insurance will reduce your monthly premium. Just remember that you’ll end up paying a bit more out of pocket if you cause a collision.

• Look for discounts: Most insurers offer discounts that can help you save money on your policy. Talk to your agent or reach out to customer service to make sure you’re taking advantage of all your eligible discounts.

• Pay in full: You can often save some money on your car insurance if you pay your annual premium up front.

• Bundle your policies: Bundling your car insurance with another policy, such as home or renters insurance, can usually help you save money.

• Compare quotes: Shopping around and comparing car insurance quotes regularly can help you find the most affordable rates for your unique situation and needs.

New Mexico Auto Insurance Requirements

Drivers in New Mexico are required to carry a minimum amount of car insurance. The state minimum-coverage policy includes $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $10,000 in property damage liability per accident.

You can also file a surety bond or cash deposit for $60,000 with the New Mexico state treasurer as an alternative to a traditional car insurance policy.

Penalties for driving without auto insurance in New Mexico

Your vehicle registration will be suspended if you’re caught driving without insurance in New Mexico. After receiving a notice of suspension of registration letter in the mail, you must return your registration and license plates to the Motor Vehicle Division (MVD) within 10 days — and you can face additional penalties if you don’t return the registration and plate within the required time frame.

New Mexico Auto Insurance FAQs

We have answers to some of the most commonly asked questions by New Mexico drivers like you.

What is the cheapest auto insurance company in New Mexico?

GEICO is the cheapest car insurance company in New Mexico, according to Compare.com data. But, GEICO may not be the cheapest insurer for everyone. Your rate will depend on your personal situation and unique coverage needs.

How much is car insurance in New Mexico?

The average cost of car insurance in New Mexico is $112 per month. But some car insurance companies, like GEICO, Central Insurance, and State Farm, have average rates below the statewide average. Getting car insurance quotes from multiple insurers will help you find the most affordable company for you.

How much car insurance is required in New Mexico?

New Mexico drivers are required to carry a minimum-coverage policy with at least 25/50/10 in personal liability coverage. That means $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $10,000 in property damage coverage. But many drivers can benefit from a full-coverage policy, which is more expensive but provides much more protection.

Does New Mexico require SR-22 insurance?

No. New Mexico is one of a few states that doesn’t require SR-22 insurance if your driving privileges get revoked or your license is suspended.

What happens if you get caught driving without insurance in New Mexico?

If you get caught driving uninsured in New Mexico, your vehicle registration will be suspended, and you must return your license plates to the MVD. Once you can show proof of car insurance, you can reinstate your registration and get your plates back.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. New Mexico Motor Vehicle Division “Insurance,” Accessed August 18, 2023.
2. Statista, “Population density in the U.S. by federal states including the District of Columbia in 2021,” Accessed August 18, 2023.
3. Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” Accessed August 18, 2023.
4. New Mexico Motor Vehicle Division, “DWI Information,” Accessed August 18, 2023.
5. New Mexico Demographics, “New Mexico Cities by Population,” Accessed August 18, 2023.