Because New Mexico is one of the cheaper states for auto insurance, you’ll have plenty of options for affordable coverage. New Mexico drivers can find minimum coverage car insurance for as low as $207 per year, while the cheapest full coverage rates average $882 per year.

We at the Home Media reviews team have researched car coverage options from across the Land of Enchantment. Below are the companies that typically offer the cheapest car insurance in New Mexico for full coverage:

*These rates are based on a 35-year-old driver with good credit and a clean driving record. Your rates will vary depending on a number of factors.

We also looked at average car insurance costs across different groups of drivers. This data was used to help us rank the five best car insurance companies for motorists in New Mexico.

The average rate for full coverage car insurance in New Mexico is $1,449 per year, which breaks down to $121 per month. This is 16% less than the national average of $1,730 annually or $144 monthly.

Minimum Coverage Car Insurance Cost in New Mexico

Minimum coverage in New Mexico costs an average of $441 per year or $37 per month. That’s almost 31% below the national average of $635 per year, making New Mexico one of the more affordable states for auto insurance.

Listed below are price estimates for minimum coverage in New Mexico:

Factors That Affect Car Insurance Costs

Car insurance companies look at many variables when deciding on drivers’ rates for auto coverage.

Some of the top factors that affect prices for car insurance in New Mexico are:

• Location: Those in major cities such as Albuquerque often pay higher-than-average prices for car coverage.
• Age: Young drivers and teen drivers usually get charged steep prices due to their inexperience on the road.
• Driving history: If you have a speeding ticket, at-fault accident or DUI violation on your driving record, you’ll pay higher rates.
• Credit history: Those with bad credit scores often struggle to find affordable rates on auto insurance.
• Gender: Young men typically get charged more than young women for the same coverage plans.
• Marital status: Single drivers pay more on average for car insurance than the majority of married motorists.
• Vehicle: Your car’s make, model, age and mileage will factor strongly into your coverage prices.
• Deductible: High deductibles can help lower your premiums, but you’ll end up paying more out of pocket after an at-fault accident.

Drivers in the Albuquerque region and in southeastern New Mexico often pay some of the highest rates for car insurance in the state. Average prices are considerably lower in other major cities such as Las Cruces and Santa Fe.

*Average rates above apply to the top three companies in each city.

The cost of car insurance in New Mexico varies significantly depending on your age. While 30-year-olds pay an average of $1,529 per year for full coverage, those who are 16 get charged an average of $5,787 annually.

Cheapest New Mexico Car Insurance for 16-Year-Olds

It’s expensive for 16-year-olds to get auto insurance in the Land of Enchantment. The state’s cheapest average rates come from Central Insurance and total $3,146 per year.

Cheapest New Mexico Car Insurance for 17-Year-Olds

It’s considerably cheaper to pick up coverage when you’re 17 years old in New Mexico. The lowest average annual rate for this group of drivers is from USAA and costs $2,362.

Cheapest New Mexico Car Insurance for 18-Year-Olds

Prices continue to decline once you turn 18 in the Land of Enchantment. Eighteen-year-old drivers who get coverage from USAA pay an average rate of $1,988 per year.

Cheapest New Mexico Car Insurance for 21-Year-Olds

When drivers reach their 20s, they typically start seeing drastically reduced annual car insurance premiums for full coverage. USAA has an average rate of $1,224 per year for 21-year-old drivers.

Cheapest New Mexico Car Insurance for 25-Year-Olds

New Mexico drivers who are 25 pay relatively affordable rates for auto coverage. The cheapest car insurance in New Mexico for these motorists costs $1,044 per year and comes from USAA.

Getting a speeding ticket is one way to boost your rates for auto coverage in the Land of Enchantment. The cheapest car insurance in New Mexico after a speeding violation usually comes from USAA, which offers an average rate of $1,082 per year.

Those involved in a recent car accident can expect their auto insurance rates to increase. In New Mexico, State Farm is the cheapest provider for those with an accident on their record, with an average rate of $1,128 per year.

Motorists who get caught driving under the influence (DUI) pay an average of $1,128 per year for State Farm coverage, the cheapest option available.

While many motorists spring for the cheapest car insurance in New Mexico, it’s smart to consider your quality of coverage as well. Below are five choices that merge exceptional protection with below-average car insurance quotes.

*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in New Mexico.

#1 State Farm: Most Popular Provider

J.D. Power regional rating: 848/1,000

AM Best financial strength score: A++

Better Business Bureau (BBB) rating: A+

It’s easy to see why more drivers choose State Farm than any other auto insurance company. From its reasonable rates across New Mexico to outstanding customer satisfaction with local insurance agents, there’s little to dislike. State Farm offers many car insurance discounts for safe driving. It’s also known for its great savings opportunities for students and teen drivers, making it a compelling choice for those with little experience on the road.

Keep reading: State Farm insurance review

#2 Geico: Editor’s Choice

J.D. Power regional rating: 827/1,000

AM Best financial strength score: A++

BBB rating: A+

Those searching for cheap car insurance in New Mexico ought to consider a plan from Geico. The insurer offers some of the lowest rates in the Land of Enchantment, especially for young drivers and good drivers looking for full coverage policies. Geico is a reliable choice with a stellar financial strength rating from AM Best, which highlights its ability to pay out claims to customers. New Mexico drivers can also find plenty of chances to save on their Geico policy.

Keep reading: Geico insurance review

#3 USAA: Low Rates for Military

J.D. Power regional rating: 856/1,000

AM Best financial strength score: A++

BBB rating: A+

USAA is worth checking out for its low average rates and exceptional customer service. You’ll likely pay some of the cheapest rates for car insurance in New Mexico while gaining coverage from a well-respected provider. No regional company matches USAA’s high customer satisfaction scores in J.D. Power studies, demonstrating that it offers high-quality service. However, USAA coverage is only available to military members, veterans and their families. 

Keep reading: USAA insurance review

#4 Central Insurance: Strong Coverage Option

J.D. Power regional rating: Unranked

AM Best financial strength score: A

BBB rating: A+

Drivers often find some of the cheapest car insurance in New Mexico through Central Insurance. This Van Wert, Ohio-based company offers relatively affordable coverage across New Mexico and receives a high 4.9-star rating out of 5.0 from reviewers on Google. Despite its smaller size, Central Insurance will likely face no issues paying out claims due to its strong financial health.

#5 Nationwide: Affordable Rates in New Mexico

J.D. Power regional rating: Unranked

AM Best financial strength score: A+

BBB rating: A+

Nationwide often provides excellent rates in New Mexico for those who want full coverage on their vehicles. The company holds a stellar rating for financial stability and its A+ rating from the BBB indicates a commitment to customer service. The SmartRideⓇ program from Nationwide is a form of usage-based insurance that can help drivers find additional savings.

Keep reading: Nationwide insurance review

To legally drive in the Land of Enchantment, you’ll need to maintain the state minimum coverage limits outlined by the New Mexico Motor Vehicle Division:

• Bodily injury liability insurance: $25,000 per person and $50,000 per accident
• Property damage liability coverage: $10,000 per accident

New Mexico state requirements mandate pretty basic coverage compared to most spots across the country. That’s one reason the cheapest car insurance in New Mexico often comes at such reasonable rates.

New Mexico law holds drivers to an at-fault insurance system, meaning that whoever causes an accident is responsible for covering all damages. It’s generally cheaper to get coverage in states with an at-fault system.

Additional Car Coverage Types

It’s smart for motorists to consider additional coverage beyond the state’s minimum requirements, as these won’t protect a vehicle in the event of an at-fault accident. Additional coverage options that can offer greater protection include:

• Collision coverage: provides coverage for damages after an accident that you’re at fault for — which minimum coverage in New Mexico won’t
• Comprehensive insurance: covers environmental damage and instances of theft or vandalism
• Uninsured motorist coverage/underinsured motorist coverage: protects drivers and their vehicles after an accident with someone who doesn’t carry adequate levels of auto insurance
• Medical payments (MedPay) coverage: for certain medical expenses resulting from a car accident, regardless of who caused the incident

Lenders commonly require that drivers carry collision and comprehensive coverage. Read your contract carefully to learn whether your vehicle needs them.

Also consider bundling your New Mexico auto insurance with renters and homeowners coverage. By doing so, you’ll likely receive a reduced rate on your policy.

Make sure to compare car insurance quotes to determine which provider offers the cheapest coverage for your vehicle. That way, you’ll be able to receive high-quality car insurance in New Mexico at some of the lowest possible prices.

We recommend checking out State Farm, Geico, USAA, Central Insurance and Nationwide. These companies all are known for their excellent rates and have strong reputations for customer service in the Land of Enchantment.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation (15% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer Experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

*Data accurate at time of publication.