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Renata Balasco

Senior Content Strategist

  • Licensed Insurance Agent — Property and Casualty

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

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Mark Friedlander

Director, Corporate Communications, Insurance Information Institute

Mark Friedlander has over 30 years of experience in the insurance industry. He is the Director, Corporate Communications, at the Insurance Informatio…

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Kristine Lee

Insurance Analyst

  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

Here's what you need to know when driving in New Mexico

Across the Land of Enchantment, there are 142,940 miles of road just waiting to be driven. The average car insurance rate in New Mexico is $1,375 per year — around 10% less than the U.S. average. Car insurance rates are impacted by more than just your location. Auto insurance rates comprise many factors, including a driver's age and driving history. The Zebra's experts analyzed average New Mexico car insurance rates for these rating factors in an effort to help you find an affordable policy.

Read on to learn how much auto insurance costs in New Mexico based on these variables, or submit your ZIP code above to receive personalized insurance quotes from top companies.

The best car insurance companies in New Mexico

Based on data from J.D. Power's 2021 Auto Satisfaction Study and The Zebra's Customer Satisfaction Survey, we have compiled a list of the best car insurance companies in New Mexico.

1st place medal

Along with topping The Zebra's Customer Satisfaction Survey, USAA received a score of 856 (out of 1,000) in J.D. Powers' 2022 U.S. Auto Insurance Study for the state of New Mexico.

2nd place medal
State Farm

State Farm placed third in this region with a score of 848 in J.D. Power's 2022 Auto Insurance Study. This carrier also received 4.4 stars out of 5 in The Zebra's Customer Satisfaction Survey. 

3rd place medal

As a highly-rated regional carrier, GEICO scored an 827 on J.D. Power's 2022 auto study and a 4.4 stars out of 5 on The Zebra's Customer Satisfaction Survey.

Key takeaways

  • New Mexico drivers pay about 10% less for car insurance on average
  • The cheapest major car insurance company is USAA, with State Farm close behind.

The cheapest car insurance companies in New Mexico

These companies offer the cheapest rates in the following scenarios.

Cheapest full coverage insurance: USAA

The cheapest rates are from USAA at $1,164 annually, or $97 per month.

medal for most affordable
Cheapest for minimum liability: GEICO

For teen drivers in New Mexico, GEICO is the cheapest on average. 

state farm
Cheapest for DUI: State Farm

If you have a DUI on your record, check out State Farm for the cheapest average rates.

Company Avg. Annual Premium
USAA $1,164
State Farm $1,223
GEICO $1,249
Nationwide $1,379
Farmers $1,796
Progressive $2,009
Allstate $2,704

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

New Mexico auto insurance laws

Car insurance is mandatory in almost every state, including New Mexico. If you choose the legal minimum coverage level in New Mexico, expect to pay an average of $459 annually.

State minimum coverage

In order to drive legally in the state of New Mexico, you must carry at least the minimum liability limits listed below:

  • Bodily Injury $25,000 per person
  • Bodily Injury $50,000 per accident
  • Property Damage $10,000 per accident

Optional coverage in New Mexico (varies by carrier):

  • Comprehensive
  • Collision
  • Loan/Lease Payoff
  • Medical Payments
  • Rental Car Reimbursement
  • Roadside Assistance
  • Uninsured/Underinsured Motorist Bodily Injury
  • Uninsured Motorist Property Damage
car with blue windshield

If you opt for better coverage, you can choose a policy with comprehensive and collision, which will protect against the costs of car accidents, theft, vandalism, or weather incidents. But better coverage comes with a cost: in New Mexico, a comprehensive insurance policy with a $1,000 deductible costs $1,212, 154% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay 213% more than you would for basic coverage.

The Zebra's guide to New Mexico car insurance laws

Learn more about car insurance requirements in the state of New Mexico with our helpful guide.

Compare car insurance rates from the best companies in New Mexico.

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New Mexico car insurance premiums by rating factor

Your rates are determined by a number of individual factors, including your coverage level, driving history, location, and more. Explore average premium costs by rating factor below to get a better sense of how much you should be paying for auto insurance in New Mexico.


Cheap auto insurance in New Mexico for minimum coverage

Drivers who choose the minimum amount of coverage required by the state of New Mexico can expect to pay an average of around $23 per month. However, with this rock bottom price comes a tradeoff: both you and your vehicle would be at risk of being underinsured. Still, if minimum coverage is what you're after, check out the rates from popular carriers below.

Company Avg. Annual Premium
USAA $272
State Farm $333
GEICO $392
Nationwide $424
Allstate $579
Progressive $660
Farmers $711

Cheap auto insurance in New Mexico with bad credit

Your credit history is an important factor in determining your car insurance rates. Many carriers see those with a poor credit score as being higher risk, meaning you could pay more for your policy. On average, New Mexico drivers with poor credit pay around $2,199 for coverage, 80% more per year than those with exceptional credit. Have a look at some common rates by credit tier below.

Company Avg. Annual Premium
GEICO $1,666
Nationwide $1,990
USAA $2,219
State Farm $2,398
Farmers $2,761
Progressive $2,950
Allstate $3,398

Cheap auto insurance in New Mexico with an at-fault accident

Your driving history plays a big part in how much you pay. Insurance companies look for previous accidents for which you have been at fault to gauge the level of risk you pose as a customer. An at-fault accident in recent years could see your car insurance rates increase by as much as 43%.

Safe driver discounts

In addition to having a cheaper premium, some companies offer a safe driving discount. While the amount varies based on your company, it can range between 5 and 10%.

Company Avg. Annual Premium
State Farm $1,472
USAA $1,683
GEICO $2,006
Nationwide $2,063
Farmers $2,477
Progressive $3,049
Allstate $3,400

Cheap auto insurance for young drivers in New Mexico

Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In New Mexico, teen drivers pay especially high rates: $4,551 per year — more than $3,000 more than the nationwide average and 231% more than a typical New Mexico driver.

Company Avg. Annual Premium
GEICO $3,317
USAA $3,349
State Farm $3,898
Nationwide $4,225
Allstate $7,328
Progressive $7,482
Farmers $7,955

New Mexico auto insurance rate by violation

In New Mexico, a bad driving record will cause your rates to skyrocket. If you receive a ticket or citation, your auto insurance premiums will probably rise. By how much depends on the violation, your insurer's pricing standards, and differing local insurance regulations and risks. That's why tickets may have a different impact on insurance in your state compared to the national average.

See below average auto insurance rates in New Mexico after a few common citations.

Accident/Violation Avg. Annual Premium % Rate Increase $ Rate Increase
None $1,628 0% $0
One Med/PIP claim $1,642 1% $15
One comp claim $1,695 4% $67
Not-at-fault accident $1,705 5% $77
Two Med/PIP claims $1,736 7% $108
Two comp claims $1,789 10% $161
Failure to show documents $1,811 11% $183
Failure to wear a seat belt $1,823 12% $195
Driving without lights $1,824 12% $196
Child safety restraint $1,871 15% $243
Driving with expired registration $1,889 16% $261
In 65 MPH zone $1,914 18% $286
Cell phone violation $1,929 19% $301
Texting while driving $1,929 19% $301
Speeding 6 - 10 MPH over limit $1,944 19% $316
Speeding 11 - 15 MPH over limit $1,944 19% $316
Speeding 16 - 20 MPH over limit $1,944 19% $316
Driving too slowly $1,951 20% $323
Speeding in school zone $1,951 20% $323
Wrong way/wrong lane $1,952 20% $324
At-fault accident - less than $1000 $1,955 20% $327
Improper passing $1,963 21% $335
Following too closely $1,963 21% $335
Failure to yield $1,963 21% $335
Failure to stop at a red light $1,963 21% $335
Illegal turn $1,963 21% $335
Operating a vehicle without permission $1,984 22% $356
Passing school bus $1,986 22% $358
Speeding 21 - 25 MPH over limit $2,021 24% $394
Open container $2,138 31% $511
At-fault accident - $1000-$2000 $2,279 40% $652
At-fault accident - greater than $2000 $2,297 41% $669
Reckless driving $2,944 81% $1,317
Driving with a suspended license $2,947 81% $1,320
Refusal to submit to a chemical test $2,981 83% $1,353
DUI $3,104 91% $1,477
Racing $3,192 96% $1,564
Leaving scene of an accident/hit and run $3,215 98% $1,587

New Mexico DUI laws

In New Mexico, a DUI offense can increase your annual car insurance premium by an average of 91%. That’s almost $1,500 dollars more per year than the state average. Finding affordable auto insurance in the wake of a DUI violation isn’t simple. In fact, a DUI often brings about a bigger premium increase than any single road violation — more than an at-fault accident, racing, or reckless driving.

Low-cost car insurance after a DUI in New Mexico

If you're convicted of a DUI or DWI violation in New Mexico, it’s key to mull over each of your insurance choices carefully. Auto insurance premiums following a DUI can vary substantially by insurer. For example, the least expensive car insurance company with a DUI in New Mexico, State Farm's annual rates are significantly less than the statewide average insurance rate with a DUI, coming in a full 48% lower. The second-cheapest insurer for auto insurance after a DUI in New Mexico is Progressive, while the priciest firm is Allstate, with prices 9% above average.

Company Avg. Annual Premium
State Farm $1,690
Progressive $2,289
Farmers $2,382
USAA $2,384
Nationwide $2,594
GEICO $2,850
Allstate $3,387

There is no car insurer in particular that offers cheap DUI car insurance. The recommended way to save in the wake of a DUI citation is to shop around.

New Mexico SR-22 insurance

An SR-22 is a routine legal requirement triggered by a violation such as a DUI conviction, a ticket for driving without insurance, an at-fault collision, driving with a suspended license, or accumulating too many points on your license. It is not a type of insurance policy, but a form issued by your insurance company to ensure that you remain insured. Most states require an SR-22, but New Mexico is one exception. The state of New Mexico does not require you to file an SR-22 in order to apply for insurance. 

If you move from a state that requires an SR-22 to a state that does not, you will typically still need to follow the requirements of the state that first required you to file an SR-22.

Find an affordable policy in New Mexico in minutes!

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Rates by city

Car insurance companies calculate your rate based on many factors, the location of the vehicle being an important one. Among New Mexico's largest cities, the cheapest car insurance is found in Las Cruces, New Mexico, and the most expensive in Albuquerque, New Mexico.

Have a look at the table below to see average car insurance costs in some of New Mexico's other biggest cities.

City Avg. Annual Premium
Las Cruces $1,474
Roswell $1,635
Santa Fe $1,680
Rio Rancho $1,748
Albuquerque $1,891

Car insurance price trends in New Mexico

In New Mexico, average annual auto insurance costs increased by $101 in the past year. A typical New Mexico driver pays an average of $1,375 per year.

The recent pricing trend in New Mexico leans toward slightly pricier car insurance costs but remains lower than the national average. The steepest decrease occurred from 2017 to 2018, while the highest surge took place from 2016 to 2017. At the same time, car insurance rates across the United States have stayed relatively steady in the past few years, moving from $1,521 in 2018 to $1,529 in 2021.

Year Avg. Annual Premium — New Mexico Yearly Change — New Mexico Avg. Annual Premium — US Yearly Change — US
2021 $1,375 $101 $1,529 $46
2020 $1,274 -$83 $1,483 -$61
2019 $1,357 -$39 $1,544 $23
2018 $1,396 -$400 $1,521 $84
2017 $1,796 $234 $1,437 $69
2016 $1,562 -$323 $1,368 $88
2015 $1,885 $216 $1,280 $51
2014 $1,669 $155 $1,229 $34
2013 $1,514 -$63 $1,195 -$80
2012 $1,577 $323 $1,276 $82

If your rates are rising faster than the average in your state, compare quotes and find a better deal. The Zebra's car insurance comparison engine furnishes quotes based on your specific profile — enter your ZIP below to get started.

New Mexico car insurance FAQs

Below you'll find answers to some of the most commonly asked questions regarding New Mexico auto insurance.

For our average user profile, State Farm ($611) and USAA ($582) have the cheapest car insurance in New Mexico.

Rates in New Mexico are about average compared to the rest of the U.S. Our data suggest New Mexican drivers pay 10% less per year than do drivers in the rest of the U.S.

No — New Mexico is currently an at-fault state. Meaning at-fault drivers must pay for the bodily injury damages they cause to other people.

Save money on your next car insurance policy!

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About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.