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Best Cheap Car Insurance in New Mexico for 2020

Jan. 2, 2020
Auto Insurance, Insurance
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Shopping around for quotes from several companies is crucial if you want to find cheap car insurance in New Mexico. The price your friends and neighbors pay will differ from your own rate, thanks to factors such as your age, location and driving history.

To help reduce some legwork, NerdWallet gathered rates from the seven largest auto insurers in the state and found the cheapest options for several types of drivers.

Cheapest for good drivers in New Mexico

For a New Mexico driver with clean driving and credit histories, the cheapest car insurance companies we found and their average rates are:

  1. Geico: $1,061 per year.
  2. State Farm: $1,069 per year.
  3. Progressive: $1,450 per year.
  4. Farm Bureau Financial Services: $1,493 per year.
  5. Allstate: $1,735 per year.
Drivers with no recent accidents or violations can get cheaper car insurance rates for having good credit. For this calculation, NerdWallet averaged rates for 40-year-old men and women with a clean driving record and good credit. In terms of driving and credit history, a large portion of drivers are closest to this profile, which carries standard "full coverage" insurance, including comprehensive and collision, along with state-required coverage. Prices shown include a good driver discount, when available from the insurer.

Cheapest for minimum coverage in New Mexico

For drivers in New Mexico who want bare-bones coverage, these companies have the cheapest average rates for minimum required insurance:

  1. Geico: $398 per year.
  2. State Farm: $417 per year.
  3. Farm Bureau Financial Services: $478 per year.
  4. Progressive: $578 per year.
  5. Allstate: $666 per year.
We calculated these numbers by averaging rates for 40-year-old good drivers (earning them a discount if the insurer offers one) who have only the minimum mandatory insurance in their state. Such light coverage isn't typically recommended since it might not cover all the bills resulting from a car accident, but it's better than nothing — especially if you can't afford much more. If you're looking for the cheapest possible insurance you can get, though, you'll still want to get quotes from at least three auto insurers.

Cheapest for good drivers with poor credit

When a driver in New Mexico has poor credit and a clean driving record, the cheapest insurers and average rates for full coverage are:

  1. Geico: $1,679 per year.
  2. State Farm: $2,056 per year.
  3. Progressive: $2,091 per year.
  4. Farm Bureau Financial Services: $2,215 per year.
  5. Allstate: $2,258 per year.
If you have a spotty credit history, it's important to shop around to find the cheapest auto insurance rates you can. Poor credit can have a bigger effect on car insurance premiums than even a DUI conviction or a recent at-fault crash, but prices vary by insurer. To calculate these figures, NerdWallet averaged rates for 40-year-olds with a clean driving record and associated good driver discount, if the insurer offered one. They had poor credit as reported to their insurer, and standard "full coverage" car insurance.

Cheapest for drivers with one at-fault crash

For a New Mexico driver who recently caused an accident, insurance companies with the cheapest average rates for full coverage are:

  1. State Farm: $1,146 per year.
  2. Geico: $1,570 per year.
  3. Farm Bureau Financial Services: $2,064 per year.
  4. Allstate: $2,397 per year.
  5. Progressive: $2,523 per year.
After a relatively minor crash, some auto insurers will charge a lot more than others for coverage. To get these figures, we averaged rates for 40-year-olds with typical "full coverage" insurance and one recent at-fault crash costing $10,000 in property damage. Your rates will remain high for three to five years after you cause an accident or have a moving violation — and you still may be rejected for coverage from certain companies, including those above. If you fall into this category, be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Cheapest insurance after a DUI in New Mexico

A New Mexico driver whose record includes a recent DUI may want to get quotes from these insurers, which returned the cheapest average rates for full coverage:

  1. State Farm: $1,146 per year.
  2. Farm Bureau Financial Services: $1,635 per year.
  3. Progressive: $1,787 per year.
  4. Geico: $2,358 per year.
  5. Allstate: $2,372 per year.
A conviction for driving under the influence, or DUI, generally results in higher auto insurance premiums than before. NerdWallet analyzed rates for 40-year-old drivers and standard “full coverage” car insurance with a recent DUI conviction to see which companies were cheapest. Be warned that you may be rejected for coverage, including from the companies listed above. Rates can vary by hundreds between carriers after a DUI, and some penalize for longer than others, so it’s important to shop around for the best available price right after you see a price hike and each year after that.

Cheapest insurance after a ticket in New Mexico

After a speeding ticket, these are the cheapest insurance companies and average rates in New Mexico for full coverage auto policies:

  1. Geico: $1,139 per year.
  2. State Farm: $1,146 per year.
  3. Farm Bureau Financial Services: $1,635 per year.
  4. Allstate: $1,931 per year.
  5. Progressive: $1,958 per year.
Getting a speeding ticket will result in higher car insurance rates from most companies for three to five years. To see who has the cheapest rates, we calculated average car insurance rates for 40-year-old drivers with “full coverage” insurance and a recent ticket for speeding 16 mph over the limit. Though these larger companies were the cheapest we found on average, others may be cheaper for you, so be sure to get at least three quotes before deciding on a carrier.

Cheapest for couples and families in New Mexico

In addition to singles, NerdWallet analyzed rates for couples and families in New Mexico — and found a different lineup of cheapest insurance companies. Each insurer has its own formulas for setting rates, so when there’s a major change in your life, like getting married, moving, or adding a driver to your policy, a different company may now be cheapest for you. To get the best price, be sure to shop for quotes and compare rates from more than one company. Here’s what we found for a New Mexico couple, with and without a teen driver.

Cheapest for a married couple in New Mexico

A husband and wife in New Mexico, both 50 years old with clean driving and credit records, may have luck with these companies, which showed the cheapest average rates:

  1. Progressive: $1,661 per year.
  2. State Farm: $1,831 per year.
  3. Geico: $1,994 per year.
  4. Allstate: $2,399 per year.
  5. Farm Bureau Financial Services: $2,479 per year.
Couples who live together can save on auto insurance by combining policies, whether they are married or not, because they can earn multi-car and multi-driver discounts. Once they tie the knot, rates can dip further, but not because of discounts — insurers see married people as less risky and so charge them lower rates. Our hypothetical 50-year-old couple’s clean driving record also earns them both a good driver discount.

Cheapest for families with a teen in New Mexico

For a 50-year-old New Mexico couple with a teen driver, here are the cheapest insurers and average rates we found:

  1. Progressive: $2,765 per year.
  2. State Farm: $3,012 per year.
  3. Farm Bureau Financial Services: $3,076 per year.
  4. Geico: $3,100 per year.
  5. Allstate: $5,338 per year.
Adding a teen with two years’ driving experience to a married couple's policy is sure to cause a big jump in rates. Since different insurers tend to see a teen’s inexperience in different ways, we analyzed rates to see which companies had the cheapest car insurance for teens. These rates are averaged for 50-year-old couples with male and female 18-year-old drivers.

Cheapest for young drivers in New Mexico

Drivers in their 20s may believe cheap car insurance is beyond reach. With less experience behind the wheel, young people typically pay higher rates than more seasoned drivers. But insurance companies consider age and driving history differently, so prices can vary widely. We checked rates for 25-year-olds in several situations to see who’s cheapest for young drivers in New Mexico.

Cheapest full coverage for young good drivers

For a 25-year-old New Mexico driver buying full coverage, these are the cheapest insurers and average rates, assuming clean driving and credit records:

  1. State Farm: $1,227 per year.
  2. Geico: $1,269 per year.
  3. Farm Bureau Financial Services: $1,621 per year.
  4. Progressive: $1,668 per year.
  5. Allstate: $1,862 per year.
Drivers in their 20s can have a hard time finding cheap car insurance, and that's even truer when they need full coverage. The rates above are averages for 25-year-old male and female drivers with comprehensive and collision coverages, which are often required for drivers with active auto loans or leases. These rates reflect a good driver discount. Young drivers, like all drivers, should check several quotes to find the cheapest for the coverage levels they need.

Cheapest minimum coverage for young good drivers

For young drivers who prefer to get just New Mexico’s minimum required insurance, here are the cheapest companies we found, ranked by their average rates:

  1. State Farm: $464 per year.
  2. Geico: $466 per year.
  3. Farm Bureau Financial Services: $554 per year.
  4. Progressive: $632 per year.
  5. Allstate: $671 per year.
Since young people often have fewer assets to protect with liability insurance, they can usually get away with lower coverage limits. For an age group with relatively high insurance rates on average, that's good news, keeping rates as low as possible. For this price set, we averaged rates for 25-year-old male and female drivers who have clean driving records, good credit and bare-bones insurance coverage.

Poor credit and minimum coverage

For a 25-year-old New Mexican whose credit is spotty, these companies returned the cheapest average rates for minimum required insurance:

  1. Geico: $542 per year.
  2. Allstate: $802 per year.
  3. Progressive: $861 per year.
  4. State Farm: $887 per year.
  5. Farm Bureau Financial Services: $988 per year.
Poor credit is common for younger folks just starting out, who may still be building their credit files. That can increase rates further, so it's extra important to shop around and compare as many insurance quotes as possible to find the cheapest you can get. For these prices, we averaged rates for 25-year-old male and female drivers with no recent accidents or violations (earning them a good driver discount), minimum coverage car insurance, and credit in the "poor" tier as reported to an insurer.

Cheapest for minimum coverage after a crash

When a young driver in New Mexico has caused a recent wreck, the cheapest insurers and average rates for minimum coverage are:

  1. State Farm: $504 per year.
  2. Geico: $627 per year.
  3. Farm Bureau Financial Services: $894 per year.
  4. Allstate: $911 per year.
  5. Progressive: $1,016 per year.
To get prices for this group, we averaged rates for 25-year-old male and female drivers with good credit and a recent at-fault crash costing $10,000 in property damage. Since car insurance is often pricier after a crash, and especially so for young drivers, we assumed minimum required insurance in the state to contain costs for our hypothetical driver. Depending on your situation, you may still be rejected for coverage, including from the companies listed above. If you've caused a crash, no matter your age, be sure to check auto insurance quotes just after the third and fifth anniversaries of your incident, when insurers often adjust rates downward.

Cheapest for minimum coverage after a DUI

For a young New Mexico driver with a recent DUI, these are the cheapest companies and average rates for minimum insurance:

  1. State Farm: $504 per year.
  2. Farm Bureau Financial Services: $639 per year.
  3. Progressive: $754 per year.
  4. Allstate: $878 per year.
  5. Geico: $945 per year.
Young drivers with a recent DUI on their records will need to be diligent to find the lowest car insurance rates they can get — it's likely that many companies' rates will be quite expensive. Depending on the circumstances, you may be rejected for coverage, including from the companies listed above. But spending the time to shop around for quotes can help you find the lowest price from a company available to you. For this analysis, we averaged rates for male and female 25-year-old drivers with a recent DUI conviction. They had good credit and minimum required car insurance, which helps keep rates down.

Cheapest for minimum coverage and a ticket

After a speeding ticket, here are the cheapest insurers and average rates for a young driver in New Mexico:

  1. Geico: $490 per year.
  2. State Farm: $504 per year.
  3. Farm Bureau Financial Services: $639 per year.
  4. Allstate: $735 per year.
  5. Progressive: $802 per year.
Getting a speeding ticket is never fun, and neither is the higher car insurance bill you may receive months later. At that point, it's time to shop around for better rates, and it wouldn't hurt to repeat on your third and fifth ticket anniversaries, when insurers may adjust rates downward. We analyzed rates for 25-year-old male and female drivers with a recent speeding violation for going 16 mph over the speed limit to see prices for this group.

Cheap for military families

If you’re a military member or a veteran — or have an immediate family member who is — chances are you’ll score a relatively affordable rate with USAA, a company that’s not available to the general public. For that reason, we don’t rank it against other companies, but USAA returned one of the three cheapest rates in every category above except for young drivers with a DUI.

» MORE: Best car insurance for veterans and military

Recap: Cheapest car insurance in New Mexico

  • Good drivers: Geico
  • Minimum coverage: Geico
  • Poor credit: Geico
  • After an at-fault crash: State Farm
  • After a DUI: State Farm
  • After a speeding ticket: Geico
  • Married couples: Progressive
  • Families with a teen: Progressive
  • Young good drivers: State Farm
  • Minimum coverage for young good drivers: State Farm
  • Minimum coverage for young drivers with poor credit: Geico
  • Minimum coverage for young drivers after a crash: State Farm
  • Minimum coverage for young drivers after a DUI: State Farm
  • Minimum coverage for young drivers after a ticket: Geico

» MORE: Compare car insurance

Minimum required auto insurance in New Mexico

New Mexico requires drivers to carry liability insurance, which covers others’ injury treatment and property damage if you’re at fault in a crash.

You must select at least the following minimum liability limits:

  • $25,000 bodily injury liability per person.
  • $50,000 bodily injury liability per crash.
  • $10,000 property damage liability per crash.

Most drivers can benefit from choosing more than the bare minimum because a crash could easily result in damage that surpasses the amounts above. Also consider other coverages that can strengthen your policy. For instance, liability coverage won’t pay to replace your car if it’s stolen; you’d need comprehensive coverage for that.

Read NerdWallet’s guide to minimum car insurance requirements by state for more details about coverages you may want for your New Mexico auto policy.

Alternative car insurance for high-risk drivers

If you’ve been denied car insurance on the open market — because of DUIs, crashes or other circumstances — you can apply for coverage through the New Mexico Motor Vehicle Insurance Plan.

For more help shopping for cheap car insurance in New Mexico, try NerdWallet’s car insurance comparison tool.

Methodology

For our “good driver” profile, NerdWallet averaged rates from the largest insurers in the state for 40-year-old men and women in all ZIP codes with 12,000 annual miles driven. The policy includes:

  • $100,000 bodily injury liability per person.
  • $300,000 bodily injury liability per accident.
  • $50,000 property damage liability per accident.
  • $100,000 uninsured motorist coverage per person.
  • $300,000 uninsured motorist coverage per accident.
  • Collision coverage with a $1,000 deductible.
  • Comprehensive coverage with a $1,000 deductible.
If required, minimum additional coverages were added and "good driver" discounts were automatically applied. Our “young driver” had all the same characteristics, but average rates were for 25-year-old men and women. We used a 2016 Toyota Camry LE for all single drivers. We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.
  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit.
  • For drivers with one at-fault crash, we added a single at-fault crash costing $10,000 in property damage.
  • For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.
  • For drivers with a DUI, we added a single drunken driving violation.
Couples in our analyses were 50-year-old men and women with good credit and clean driving histories, averaged across all ZIP codes with the same policy outlined above. To see rates for families with a teen, we added an 18-year-old licensed two years ago, averaging rates for male and female teens. For couples and families we added a 2016 Nissan Rogue S to create a two-car household.

In all cases, a paperless discount, e-signature discount and electronic funds transfer discount were automatically applied. These are rates provided by Quadrant Information Services. Your own rates will be different.