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The average cost of basic liability car insurance in New Mexico is $1,638 per year. Opting for full-coverage car insurance in New Mexico will leave you with an average cost of $1,942 per year. In comparison, the national average is $1,627 per year to buy basic liability car insurance and $2,297 per year to buy full-coverage car insurance.
Compare Best Car Insurance Quotes in New Mexico
Remember, insurance companies use a lot of different factors to set your rate. Like, a lot. It’s not just your vehicle’s value and your driving history—it’s also your credit history, your car accident record, your insurance history, and where you live. Age? You bet. Your gender? That too.
Here are some real quotes and savings from customers in New Mexico who switched with Jerry:
If you’re looking for cheap car insurance in New Mexico, you’re likely looking at auto insurance companies like State Farm, GEICO, and USAA. And while you might find affordable quotes with any of those companies, they aren’t the best car insurance companies for every driver in New Mexico.
See, every auto insurance provider uses a slightly different set of algorithms to set car insurance premiums. If your profile—from your credit score to your ZIP code and marital status—fits the company’s algorithm, you’ll get a good rate. But there’s no way to know where you’ll find your best fit without comparing quotes from multiple companies.
What is the minimum car insurance required in New Mexico?
All car owners in New Mexico are required by law to carry the following minimum levels of auto insurance:
- Bodily injury: $25,000 per person and $50,000 per accident.
- Property damage: $10,000 per accident.
Is car insurance expensive in Albuquerque?
While the average cost for car insurance in New Mexico is slightly below the national average, rates in densely populated areas, like Albuquerque, tend to be higher than the state average.
How much is a ticket for no insurance in New Mexico?
Driving without insurance in New Mexico can cost you up to $300 in fines, but it can also result in:
- Imprisonment for up to 90 days
- Suspension of vehicle registration
- Confiscation of your license plate
Do I need insurance to register a car in New Mexico?
Yes. New Mexico requires drivers to demonstrate financial responsibility by showing proof of insurance whenever they register a vehicle.
How much does car insurance cost in New Mexico?
The average cost of car insurance in New Mexico is slightly below the national average, which is great news for drivers in Las Cruces and Santa Fe. But if you’re paying more than you’d like to, there might be some factors at play in raising your rate.
First, a ton of New Mexico drivers don’t carry even basic liability insurance. Almost 22% of drivers in the state are uninsured—that’s more than one in five drivers.Not only can that land you with some hefty uncovered expenses after an accident, but it also raises insurance rates for everyone else.
Overall, New Mexico’s population density is fairly low, but lots of drivers on the road in major cities like Albuquerque and Santa Fe means a higher chance of accidents—and claims. If you live in a densely populated area, you’re likely paying a higher rate than rural drivers (more on that later!).
Here’s a rundown of what you need to know about car insurance in New Mexico:
New Mexico uses a 25/50/10 rule for minimum coverage. This means that drivers need a minimum of $25,000 of bodily injury coverage, $50,000 of bodily injury liability per accident, and $10,000 worth of coverage for property.
What do you need if you’re pulled over?
If you get pulled over, you are required to show your driver’s license, proof of insurance, and registration. Thankfully, digital insurance ID cards are accepted by police and the DMV so you will always have your stored proof of insurance available 24/7 in the Jerry app.
Is New Mexico a no-fault state?
No, New Mexico is an at-fault state. This means the at-fault driver’s insurance will pay for the not-at-fault driver’s and passengers' injuries, once the at-fault driver’s insurance company accepts liability and confirms that there is enough coverage.
Only liability insurance is required by New Mexico state law.
New Mexico’s minimum coverage limits provide enough coverage to protect your wallet from steep out-of-pocket costs in the event of an at-fault accident (i.e., an accident you’re responsible for). But they won’t cover repairs to your vehicle due to collisions, vandalism, or theft—all of which are covered by comprehensive coverage and collision insurance.
Cheapest car insurance with a DUI or speeding ticket in New Mexico
Violations on your driving record—or a household member’s—can raise your rate significantly in New Mexico. Serious violations like a DUI or reckless driving conviction come with the biggest rate hikes, but even a pattern of repeated speeding tickets could cause your premiums to increase—and those high rates will follow you as long as the points stay on your record.
If you’re still paying for a mistake you made years ago, there’s a way to find better prices at the same coverage level. Jerry is an expert at finding affordable rates for drivers with violations. Check out the examples below:
Teen drivers pay some of the highest car insurance rates in New Mexico. Insurance companies see all drivers under 25 years old as high-risk drivers—but drivers between 16 and 18 years old carry the highest risks and the highest premiums.
Adding a 16-year-old driver to your policy in New Mexico could cost from $2,500 to a whopping $6,800! While you’re unlikely to enjoy the same low rates as your parents, you can still find a great deal on car insurance by shopping around and maintaining a clean driving record.
How can young drivers save money on car insurance in New Mexico?
Across the Land of Enchantment, insurance rates are kept affordable by low population density. But if you live in a busy urban center or an area with a lot of tourist traffic, you’re likely to pay a little extra.
As an example, let’s compare Alamogordo insurance costs and Tucumcari insurance costs. Alamogordo gets a ton of traffic thanks to Holloman Air Force Base, White Sands National Park, and, of course, the World’s Largest Pistachio. As a result, average premiums in Alamogordo are about $1,000 more per year than in Tucumcari, where Route 66 tourism makes a much smaller impact on insurance rates.
So where does your ZIP code put you on that spectrum? Find out below.
Cities with the Longest Commute Times in New Mexico
El Cerro Mission has the longest average commute time in New Mexico, at 30.7 minutes. The longer your driving time, the higher the likelihood you would get in an accident. Plus, the long commute will add miles to your vehicle—and all of these factors raise premiums.
Meeting New Mexico’s minimum liability requirements will allow you to legally operate a motor vehicle—but it won’t give you all the protection you need from a car insurance policy. You could meet all the minimum requirements set by law and still be underinsured for certain eventualities.
For instance, hit-and-run accidents often come with high repair costs—and without uninsured motorist coverage, you’ll be stuck paying out of pocket. Catalytic converter theft, natural disasters, and other non-accident damages are all covered under comprehensive insurance. Without full coverage car insurance, you’re left open to some pretty serious risks.
Not sure where to start? The features below have some tips for adding extra coverage on top of minimum liability in New Mexico:
New Mexico ranks 3rd nationally for traffic and infrastructure. It is a good idea to have collision insurance so you’re protected from accidents that could result from bad traffic or poor road conditions.
In New Mexico, 21.8% of drivers are uninsured. If you’re involved in an accident with an uninsured driver, you can be in serious trouble financially. It's important to have uninsured/underinsured motorist insurance so you have coverage that protects you against a driver who doesn't have liability.
Car insurance costs can make up a huge part of your monthly expenses—and saving on insurance is one of the best ways to free up a better cash flow. Check out some strategies for New Mexico drivers to save.
Shop around for quotes
Expert insurance agents all agree: comparing quotes is the best way to find lower rates on car insurance. Generally speaking, you should aim to get quotes from at least three insurance companies before deciding on the best plan. You can avoid the legwork by working with a broker or using a car insurance comparison app.
Look for discounts
Just about every insurance company offers discounts, whether it’s for maintaining a clean driving record or bundling home and auto insurance. You might be eligible for more discounts than you realize—but you may have to ask about them to lock in that low price.
Check out the list below for ideas of discounts that could save you money on car insurance in New Mexico:
Clean Driving Record Discounts
If you’re a low-risk driver, you can expect your insurance company to give you a discount because you’re less likely to file a claim. That’s just one of the reasons why it's important to keep a clean driving record.
Customers insure multiple cars with the same insurance carrier or have the same carrier for their home or renters insurance and car insurance can save money through a bundling discount.
Online payments discounts
Many insurance carriers will give a small discount to customers who set up automatic online payments, as people who use online payments are less likely to default on a payment.
Increase your deductible
If you’ve got a policy with collision and comprehensive coverage, you have a deductible. That’s a set amount of money you agree to pay out of pocket before your coverage kicks in on a collision or comprehensive claim.
Most deductibles are $500 or $1,000, but you can often set it higher—and the higher you go, the less you’ll pay to maintain the policy. It’s a great way to reduce your month-to-month insurance costs.
Just be careful: if you’re not sure you could pay a $2,000 deductible out of pocket, don’t choose it. That’s setting yourself up for a seriously sticky financial and legal snafu.