The Cheapest Auto Insurance Companies in New Mexico in 2025

National General offers the cheapest car insurance rates in New Mexico. But your personal premiums will vary based on several factors.

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Anna Baluch
Written byAnna Baluch
Anna Baluch
Anna BaluchInsurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert who’s written for Compare.com since 2023. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions.

Her work can be seen across the web in several notable publications, including Freedom Debt Relief, Credit Karma, RateGenius, and The Balance.

Matthew Gross
Edited byMatthew Gross
Matthew Gross headshot
Matthew GrossEditor

Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.

Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.

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New Mexico, like nearly every state, requires drivers to buy car insurance to legally drive. Residents pay an average of $108 per month for coverage, according to Compare.com data. Auto insurance policies in the Land of Enchantment can be more affordable than in other states, possibly due to its lower population density.[1]

But many car insurance companies in New Mexico offer rates well below the state average, including National General, The General, and Progressive. Monthly premiums for liability insurance start as low as $60.

Let’s take a closer look at the cheapest car insurance companies in New Mexico. We’ll also tell you how you can find the right insurer and save money on your auto policy.

Key Takeaways
  • National General has the lowest average car insurance rates in New Mexico, with liability policies starting at $60 per month.

  • New Mexico drivers pay an average of $69 per month for liability insurance and $147 per month for full coverage.

  • New Mexico requires drivers to have 25/50/10 of liability coverage.[2]

The Cheapest Car Insurance Companies in New Mexico

Regardless of New Mexico’s average car insurance premiums, you can still save on coverage. Several insurers offer lower-than-average rates if you know where to look. Comparing quotes from several auto insurance companies can help you find the cheapest price before you buy a policy.

Below, you’ll find the cheapest auto insurance companies in New Mexico, according to Compare.com data.

The below rates are estimated rates current as of: Thursday, July 3 at 12:00 PM PDT
Company
sort ascsort desc
Average Monthly Premium
sort ascsort desc
National General$60
The General$60
Progressive$71
Root$72
Bristol West$73
Safeco$80
Dairyland$89
State Farm$93
Direct Auto$96
GAINSCO$99
Foremost$101
USAA$112
Liberty Mutual$143
GEICO$148
Allstate$184
Farmers$220
Nationwide$223
Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

National General offers the cheapest car insurance in New Mexico, with average rates starting at $60 per month.

Keep reading for a breakdown of how New Mexico’s car insurance rates vary by driver and coverage.

Cheapest Car Insurance in New Mexico by Driver and Coverage Type

How much you pay for car insurance varies based on your driver profile and your needs. Several factors, including your age, gender, ZIP code, and driving record, affect your premiums.[3]

The chart below highlights the cheapest insurers in New Mexico for different driver backgrounds and coverage types, according to Compare.com data.

Driver/Coverage Type
sort ascsort desc
Cheapest Insurer
sort ascsort desc
Insurer’s Average Monthly Premium
sort ascsort desc
State-minimum coverageNational General$60
Full coverageProgressive$112
TeensThe General$111
SeniorsNational General$45
Drivers with a speeding ticketNational General$73
Drivers with an at-fault accidentNational General$75
Drivers with a DUINational General$80
Drivers with excellent creditThe General$53
Drivers with poor creditThe General$70
Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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Cheapest state-minimum coverage: National General

In New Mexico, state-minimum coverage includes liability insurance, which covers property damage and injuries you cause others in an accident. Even though a liability policy is the cheapest option, you should think about whether you need more coverage than the state requires.[4]

Our data shows that New Mexico drivers pay an average of $69 per month for minimum-coverage car insurance.

If you decide liability insurance is enough for you, here are New Mexico’s five cheapest insurers for minimum coverage, according to Compare.com data.

Average Liability Rates by Company

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest full coverage: Progressive

Full-coverage insurance usually comes with comprehensive and collision coverages. These additional coverages can come in handy in a variety of situations, including fires, theft, and vandalism. If you want greater protection on the road, a full-coverage policy might make sense.

And if you have a loan or lease your vehicle, your lender may require you to buy full-coverage insurance. We found that drivers in New Mexico pay an average of $147 per month for full-coverage insurance.

Despite these higher premiums, several insurers offer full coverage for close to the average price of liability-only policies in the state.

Here’s a look at the cheapest full-coverage insurance companies in New Mexico, according to Compare.com data.

Average Full-Coverage Rates by Company

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest for teens: The General

Teen drivers pay more for car insurance than any other age group. Teens are more likely to get into car accidents than older drivers, according to the Centers for Disease Control and Prevention (CDC).[5] Younger drivers lack experience and tend to be riskier drivers. All of these factors drive up rates.

Teen drivers in New Mexico pay an average of $229 per month for an auto policy, according to our research. But you can still secure a good deal if you’re a younger driver or have one on your policy.

The chart below shows the cheapest car insurance companies in New Mexico for teens, according to Compare.com.

Average Rates for Teens

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest for seniors: National General

Seniors typically enjoy the cheapest car insurance costs of any age group. Older drivers usually have decades of driving experience and drive more responsibly. We found that New Mexico seniors pay an average of $89 per month for auto insurance.

Even with these lower average rates, you might find cheaper coverage from several insurance companies. Here are five of the cheapest car insurance companies in New Mexico for senior drivers, according to Compare.com data.

Average Rates for Seniors

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest after a ticket: National General

A speeding ticket can raise your car insurance rates when your policy renews. Your insurer will likely consider you a riskier driver and increase your rates to offset that risk. In fact, our research found that the average premiums rise by 37% after just a single ticket.

New Mexico drivers with a ticket pay an average of $131 per month for auto coverage, according to our research. But several auto insurance companies offer cheaper coverage.

This chart outlines the five most affordable insurance companies in New Mexico for drivers with a recent ticket, according to Compare.com data.

Average Rates With a Ticket

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest after an accident: National General

If you cause a car accident, your car insurance costs will likely increase even more than a ticket. Our research shows that even one at-fault accident increases average rates by 41% nationwide.

New Mexico residents with a recent accident on their record pay a monthly average of $137 for car insurance, according to Compare.com data.

Fortunately, you can typically find a more affordable policy with one of the five insurers in the chart below.

Average Rates With an Accident

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest after a DUI: National General

A driving under the influence (DUI) conviction will significantly increase your car insurance costs. Insurers raise rates after a DUI conviction because they consider it one of the riskiest driving behaviors. In fact, our research found that a DUI increases average rates by 61% nationwide.

New Mexico drivers with a DUI pay an average monthly premium of $130. But you’re not necessarily stuck paying these sky-high prices.

Here’s a look at the cheapest car insurance companies for New Mexico drivers with a DUI, according to our data.

Average Rates With a DUI

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest for bad credit: The General

Currently, car insurance companies can use a credit-based insurance score when calculating premiums in New Mexico. The New Mexico House of Representatives recently introduced a bill that would make it illegal for car insurance companies to consider credit when setting rates, but it hasn’t passed yet as of this writing.[6]

Studies have shown that drivers with poor credit are more likely to file a claim.[7] As a result, these drivers often pay more for car insurance. In fact, drivers with poor credit pay 20% more than people with excellent credit, according to our data.

New Mexico drivers with poor credit pay an average of $121 per month for car insurance, according to Compare.com data.

That said, not all insurance companies look at credit, and some offer affordable coverage regardless of your credit history. In the table below, we share the five cheapest companies for drivers with poor credit in New Mexico.

Average Rates With Bad Credit

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Our Picks for the Best Auto Insurance in New Mexico

Street view of adobe-style buildings with wooden beams, a tree branch overhead, and orange cones on the sidewalk.

No single car insurance company is the best option for every type of driver. Factors like your ZIP code, age, credit history, and driving record affect car insurance costs.

To help you with your search, we did the research and found the best car insurance companies in New Mexico for different driver profiles. We chose these insurers based on their average rates, coverage levels, customer reviews, financial strength ratings, and more.

#1 GEICO

Compare.com Rating: 4.95 out of 5

Average premium: $148 per month

Pros
  • Online quotes available

  • Highly rated mobile app

  • Above-average J.D. Power customer satisfaction ratings[8]

Cons
  • Few local agents in New Mexico

  • Fewer coverage options than other insurers

  • Poor Trustpilot rating[9]

GEICO makes it easy for New Mexico drivers to save on car insurance. The insurer offers a long list of discounts, including education and affiliation discounts. Plus, you can combine your auto policy with GEICO home insurance and score a bundling discount.

GEICO offers the DriveEasy telematics program, which can save you even more if you’re a safe driver. You can also add coverage like emergency roadside assistance, rental reimbursement, and mechanical breakdown.

#2 State Farm

Compare.com Rating: 5.0 out of 5

Average premium: $93 per month

Pros
  • Steer Clear telematics program available

  • Local agents available statewide

  • Bundling discount available

Cons
  • Some discounts not available in New Mexico

  • Gap insurance not available

  • Poor rating from the Better Business Bureau (BBB)[10]

State Farm has been in the car insurance industry for more than 100 years and serves New Mexico residents with affordable options. You can choose from emergency road service coverage, rental reimbursement, and rideshare insurance. Plus, you could save money with the Drive Safe & Save telematics program.

State Farm has local agents throughout the state to help you with your auto policy. You can also easily get a quote from State Farm’s website.

#3 Allstate

Compare.com Rating: 4.93 out of 5

Average premium: $184 per month

Pros
  • Online quotes available

  • Offers roadside coverage and rental reimbursement

  • 24/7 customer service

Cons
  • Below-average customer satisfaction rating from J.D. Power

  • Rideshare coverage not available in New Mexico

  • Some discounts not available in New Mexico

Allstate offers many options to help New Mexico residents save on coverage. If you don’t drive often, you can enroll in the pay-per-mile insurance program Milewise and pay only for the miles you drive. Allstate also offers the Drivewise telematics program that can save you money for driving safely.

Plus, if you bundle your auto and homeowners insurance, you may save up to 25% with a bundling discount. A local agent can help you decide on your coverage options and make sure you get all of the discounts available to you.

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New Mexico Auto Insurance Requirements

A gravel road stretches into a desert landscape, flanked by sparse vegetation, with distant mountains under a clear blue sky.

New Mexico requires all drivers to have car insurance. To legally drive in the Land of Enchantment, you must have the following minimum coverage:

  • $25,000 per person and $50,000 per accident of bodily injury liability coverage for injuries you cause to others in an accident

  • $10,000 per accident of property damage liability coverage for damages you cause to the other driver’s vehicle in an accident

You can use the New Mexico Insurance Identification Database (IIDB) to verify your insurance and make sure you have sufficient coverage.[11]

Is minimum coverage enough in New Mexico?

Most car insurance experts recommend buying coverage that exceeds the state’s minimum requirements. This could be particularly important in New Mexico, since the minimum requirement for property damage liability is only $10,000 per accident — much lower than in other states.

For example, let’s say you hit another car and cause $30,000 worth of damage. Because the minimum required coverage is only $10,000, you’d have to pay the remaining $20,000 out of pocket.

New Mexico Auto Insurance FAQs

Below, you’ll find the answers to some common questions about car insurance coverage in New Mexico.

  • How much is car insurance in New Mexico?

    New Mexico drivers pay an average of $108 per month for car insurance, according to Compare.com data. On average, liability insurance costs $69 per month and full coverage costs $147 per month.

  • What’s the cheapest auto insurance company in New Mexico?

    National General offers the cheapest auto insurance in New Mexico, with rates starting at $60 per month, according to Compare.com data.

  • Is car insurance in New Mexico expensive?

    It depends. Several factors affect your car insurance premiums, including your ZIP code, age, credit, and driving record. New Mexico drivers pay an average of $108 per month for car insurance, compared to the national average of $149 per month.

  • Is it illegal not to have car insurance in New Mexico?

    Yes. It’s illegal to drive a car without car insurance in New Mexico. The state requires drivers to buy $25,000 per person and $50,000 per accident of bodily injury liability coverage and $10,000 per accident of property damage liability coverage.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates 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 the rates listed in this article have been collected 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 readers with insights into how auto insurance companies determine their premiums.

Sources

  1. United States Census Bureau. "New Meixco - Profile (2020 Census)."
  2. New Mexico Motor Vehicle Department. "Insurance."
  3. Insurance Information Institute. "What determines the price of an auto insurance policy?."
  4. Insurance Information Institute. "How much auto coverage do I need?."
  5. U.S. Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers."
  6. AM Best. "New Mexico Mulls Banning Credit-Based Insurance Scoring."
  7. Insurance Information Institute. "Background on: Insurance scoring."
  8. J.D. Power. "2025 U.S. Auto Insurance Study."
  9. Trustpilot. "GEICO Reviews."
  10. Better Business Bureau. "State Farm Insurance Company."
  11. New Mexico Insurance Identification Database. "New Mexico Motorist Insurance Identification Program."
About Compare.com

Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.

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  • All of the content you see on Compare.com is based on comprehensive analysis and all data is gathered and vetted from trustworthy sources.

Learn more about us, our team, and what makes us tick.

Anna Baluch
Anna BaluchInsurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert who’s written for Compare.com since 2023. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions.

Her work can be seen across the web in several notable publications, including Freedom Debt Relief, Credit Karma, RateGenius, and The Balance.

Matthew Gross
Edited byMatthew GrossEditor
Matthew Gross headshot
Matthew GrossEditor

Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.

Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.

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