The New Mexico car insurance market is abundant with good insurers promising the best to their potential customers. While that is not always the truth, recognizing the right option for you can certainly be a challenge due to the complexity of the plans and available discounts.
This review will help you make the first step — pick the companies that suit your needs best — and the next would be requesting quotes from them.
To save you some time, we’ve analyzed the New Mexico car insurance rates and made a list of the most prominent providers.
The Best Auto Insurance in New Mexico
- GEICO: Overall Winner
- Allstate: Runner-Up
- State Farm: Cheapest Option
- AAA Auto Insurance: Best for Discounts and Additional Benefits
- Liberty Mutual: Best for Coverage Options
- State Farm: Best for Young Drivers
Overall Winner: GEICO
GEICO is one of the biggest insurance companies in the US. It ranks first in many categories, and where it doesn’t, it doesn’t fall short by much.
A balanced approach to car insurance and proper attention to every aspect earned GEICO New Mexico its leading place in the 2020 J.D. Power customer satisfaction study. It also has a very low NAIC complaint ratio of 0.62, while 1 is the average for a company of such size.
GEICO is rated with A++, or Superior, for its financial stability. Furthermore, the owner is Warren Buffett’s Berkshire Hathaway. All of this confirms its ability to pay out its customers’ claims.
The company offers reasonable prices, many discounts — especially for government employees — and good coverage plans. While GEICO is not the cheapest on the New Mexico insurance market, surpassed by State Farm and Farm Bureau, it beats them when it comes to user satisfaction ratings and the range of available discounts.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose GEICO if you want the best combination of customer service, prices, and discounts.
Look elsewhere if you are looking for the lowest prices.
4.5
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Runner-Up: Allstate
Our runner-up, Allstate, ranks just a little behind GEICO in the comparison of car insurance providers in New Mexico. The differences in customer satisfaction levels and complaint rates are minimal, but the higher prices are more noticeable.
Allstate is not among the cheapest insurers, especially for teens and people with driving offenses. But, it does offer different discounts and features to make up for the higher prices. For example, “Claim Satisfaction” guarantees a refund for up to six monthly premiums of your auto insurance in NM if you are not satisfied with the services.
Allstate excels with A+ (Superior) A.M. Best rating concerning financial stability and strength, showing that the company can handle any claim.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose Allstate if you want a wide selection of coverages, different discounts, and a unique “Claim Satisfaction” guarantee.
Look elsewhere if you are a teen driver or have a bad driving record.
4
Cheapest Option: State Farm
State Farm holds almost a fifth — about 18% — of the New Mexico auto insurance market. It provides the most affordable services without making any compromises. It also has the highest possible A.M. Best rating — A++ (Superior) for financial strength.
It has good customer satisfaction ratings and holds a fifth place on the J.D. Power regional 2020 list. In addition, the exceptionally low NAIC ratio of 0.44 reveals the company has two times fewer complaints than the average.
State Farm offers the cheapest minimal and full coverages. It’s also very lenient for clients with one at-fault accident.
However, if you have bad credit or DUI on your driving record, you might want to look elsewhere. State Farm’s prices for auto insurance in New Mexico are not the best for these categories.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose State Farm if you are looking for low prices, good optional coverages, and decent customer support.
Look elsewhere if you have bad credit or DUI on your record.
4.5
Best for Discounts and Additional Benefits: AAA Auto Insurance
Although it’s mostly known for its road assistance program, the company also offers auto insurance. AAA is a federation of motor clubs that goes by different names across states.
AAA Auto Insurance New Mexico is headquartered in Albuquerque. Depending on the coverage and claims, the company either offers its own or resells third-party policies.
The company has an A (Excellent) rating for financial stability. Unfortunately, AAA has below-average customer satisfaction ratings and a lot of complaints.
On the other hand, the company provides an incredible number of discounts for its NM car insurance. Many businesses from all sectors — travel, retail, hospitality, medical, etc. — offer deals to AAA members.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose AAA if you want a large number of discounts and additional deals.
Look elsewhere if you want excellent customer satisfaction ratings.
3.75
Best for Coverage Options: Liberty Mutual
While Liberty Mutual ranks only 7th in the J.D. Power 2020 regional study for user satisfaction — and it’s not the cheapest in the region — it is still one of the most popular insurance companies in New Mexico.
The company offers many interesting optional coverages, adjusted to local needs, such as the “Mexico Extension Endorsement”. It’s beneficial for people who often visit Mexico, as it covers their vehicle within 75 miles of the US border and for ten consecutive days in Mexico.
The other feature worth mentioning is the free “Lifetime Repair” guarantee. With your consent, this NM auto insurance company will fix your car in one of the 2,000 licensed repair shops. The warranty on the repairs lasts for as long as the vehicle remains in your possession.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose Liberty Mutual if you are interested in useful optional coverages and if you visit Mexico often.
Look elsewhere if you want great customer support or low prices.
3.75
Best for Young Drivers: State Farm
Young drivers are often viewed as risky by the New Mexico insurance companies, and, in some extreme cases, their yearly premiums can get close to the price of a small car.
Fortunately, State Farm wants to give the youngsters a chance. They have to be careful because the prices go up considerably in case of a DUI or a speeding ticket.
State Farm knows that anyone can make a mistake or cause a crash, so it doesn’t punish the young drivers severely. It offers the cheapest insurance for 20-year-olds with one at-fault accident. If you have a DUI on your record, it might be best to check other NM auto insurance providers, starting with Progressive.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose State Farm if you had an at-fault accident.
Look elsewhere if you have a DUI on your record.
4.5
Cheapest Auto Insurance in New Mexico (By City)
New Mexico residents generally pay 20% less than the national average for car insurance. The prices, however, are not the same in all cities.
We’ve requested quotes from leading insurance providers in different cities for a 30-year-old single man with good credit and a clean driving record. He is driving a 2012 Honda Accord EX, a four-door sedan.
Below you can see the quotes we’ve received for car insurance in New Mexico.
Albuquerque
Albuquerque is the most populous city in New Mexico and among the most highly elevated ones in the US. The height ranges from 4,900 to 5,352 feet above sea level.
The prices of auto insurance in Albuquerque, NM, are generally affordable — the cheapest provider is State Farm, followed by GEICO and Liberty Mutual.
The option we recommend is GEICO’s because of its significantly higher user satisfaction ratings, regardless of the slightly higher price.
Las Cruces
Las Cruces is the second-largest city in New Mexico. The name translates as “The Crosses” and perfectly describes the city — it’s a fantastic cross between history and high-tech.
The prices for car insurance in Las Cruces, NM, are very affordable. The cheapest provider is State Farm, followed by GEICO and Progressive. Since the price difference is not significant, and GEICO has the best customer satisfaction rates, we recommend it as the best option.
If you frequently go to Mexico, you might want to consider Liberty Mutual. The company offers an “Extension Endorsement” coverage that works within 75 miles of the US border and for ten consecutive days in Mexico.
Progressive insurance in Las Cruces, NM, offers similar coverage through MexPro, which can be more complicated.
Santa Fe
Santa Fe is the capital of New Mexico and is famous for two main things. First, it’s the oldest capital in the US, founded in 1,610 in Nuevo México. Second, standing at 7,199 feet above sea level, it’s the state capital with the highest elevation.
Further, the city is known for science and high-tech organizations like Los Alamos National Laboratory, Santa Fe Institute, and National Center for Genome Resources.
The prices of car insurance in Santa Fe, NM, are slightly lower than in Albuquerque but higher than in Las Cruces. The cheapest insurer is State Farm, and other affordable options are Progressive and GEICO.
We recommend GEICO, even though it will cost you just a bit more. The overall customer service and the discounts make it stand out among New Mexico auto insurance companies.
Roswell
The city famous for both aliens and the movie star, Demi Moore, has plenty to offer to its citizens and tourists.
Insurance rates in Roswell are slightly over the average cost of car insurance in New Mexico.
The cheapest providers are Progressive, State Farm, and GEICO. We can recommend GEICO for the best balance of price and user satisfaction ratings of their options for auto insurance in Roswell, NM.
Farmington
Farmington is less than 60 miles away from one of the most exciting points in the world — The Four Corners Monument. It marks the spot where Utah, Colorado, Arizona, and New Mexico state borders meet.
The most affordable insurance in Farmington, NM, is offered by State Farm. GEICO, Progressive, and Allstate follow closely. GEICO and Allstate have the best customer satisfaction ratings and interesting optional coverages, making them the best picks.
On the other hand, Progressive might be the best solution for you if you want intuitive and easy-to-use online tools. Its “Name Your Price” feature enables you to enter the amount you want to spend, and the company will make the best coverage possible for that price.
New Mexico Car Insurance Laws
New Mexico Motor Vehicle Insurance Plan
The New Mexico Motor Vehicle Insurance Plan helps people who have trouble acquiring insurance get in touch with companies that would assist them.
Every insurance company must participate in this program in a proportion analogous to its market share. In order to qualify, a driver has to prove that they have been declined services at least once in the past six months.
New Mexico Auto Insurance Requirements
New Mexico requires drivers to have at least the minimum liability coverage that includes:
- $25,000 per person/$50,000 per accident for bodily injury
- $10,000 per accident for property damage
The alternative to car insurance is proving that you can cover the damages in case of an accident. You can do that by depositing a surety bond or cash in a total amount of $60,000 with the New Mexico State Treasurer. This is equal to New Mexico liability insurance requirements.
When drivers buy insurance, the company is required by law to offer an “Uninsured” policy. It will cover the damages in case of a no-fault accident, and the other party is not insured. It is not required by law, but the state strongly recommends it. If the client refuses, they do so by signing a paper.
Over 22% of New Mexico drivers didn’t have car insurance in 2019, 10% more than the national average. That means an accident is likely to involve a driver without insurance.
The New Mexico Department of Insurance determines that the “Uninsured” policy should cover:
- $25,000 per person/$50,000 per accident for Uninsured motorist bodily injury
- $10,000 per accident for Uninsured motorist property damage
No-Fault Laws in New Mexico
Even though more and more states are turning to the no-fault system, in New Mexico, who caused the accident matters. The one at fault will use their insurance to pay for bodily injuries and property damage.
New Mexico driving laws say that the police decide the guilt and that it can be shared.
SR22 Insurance in NM
Most of the states require people with any driving offenses to file an SR22. These are mostly DUI or a driving license suspension.
New Mexico, however, does not require SR22 insurance. But if a driver with such relocates to New Mexico, he must retain it.
NM Car Insurance for New Residents
When you move to New Mexico, you have 60 days to register your vehicle. That requires insurance, meaning you have a short time to update your policy.
Keep in mind that the vehicle also has to undergo a VIN inspection at the local MVD office.
Price Optimization in New Mexico
Price optimization is a controversial practice used by many companies worldwide. For example, companies use information unrelated to risk management in car insurance to determine the policy price.
In practice, clients who don’t complain about services or request auto insurance quotes from other New Mexico companies get a higher premium, regardless if they are loyal clients. That’s why we recommend shopping around and asking questions about the services, even if you don’t plan to switch insurers.
The state never publicly condemned this practice or declared it discriminatory. So, it’s safe to assume the insurers are taking advantage of it.
How to Find Cheap New Mexico Auto Insurance
Check Auto Insurance Reviews
You should get informed on the insurance companies’ plans, additional coverage options, and available discounts through each insurer’s website and compare the deals.
A fast way to get all that and additional information on their services and good and bad practices is through reviews. Both consumer and professional feedback can give you a good perspective on your potential insurer.
We have conducted extensive research on the major insurers in NM, and there you can find everything you need to choose the best option for you.
Compare Car Insurance Quotes in New Mexico
Requesting quotes from the companies you are interested in is the best way to determine which fits your needs and budget best. You should get at least a dozen quotes and compare the prices, as every insurer uses a different algorithm for calculating. You will be surprised how much New Mexico car insurance rates can vary.
As price optimization is legal in New Mexico, you should request quotes from different companies, even if you don’t plan to switch your provider. That will likely alert your current insurer that you are shopping around, and they will give you a lower quote to keep you as a client.
If you are looking for cheap New Mexico auto insurance, don’t forget to ask for the available discounts.
Determine Who Provides the Best Discount
Most companies offer the same discounts — for loyal customers, bundling insurance, safe driving, etc. But some have specialized options for army members, government employees, AARP members, and others.
Before proceeding, it would be best to request your New Mexico driving record from the MVD to see if you have any tickets or accumulated negative points because they could increase your insurance price.
You should see what discounts you are eligible for and consider how much they would reduce the price. Sometimes the pricier insurance can turn out to be cheaper when all discounts are calculated in.
Conclusion
There is plenty of excellent and cheap car insurance on the New Mexico market, and, generally, the prices tend to be lower than the US average.
Finding the best one for your needs might be a bit more complicated. With so many sound choices, sometimes it can be hard to decide. We recommend you start your search by reading reviews to figure out which companies are suitable for you.
The next step would be to request quotes from the New Mexico auto insurance companies you picked and compare the prices and discount options. All of this may take some time, but it is worth it. You will be surprised by how much you can save and still have great coverage.
People Also Ask
Who has the cheapest car insurance in New Mexico?
In general, the USAA has the most affordable plans in New Mexico, but it is only available to active and retired army members and their families.
The second cheapest is State Farm. It offers the lowest prices to the general public and has numerous discounts available, further reducing the cost.
New Mexico car insurance is about 20% cheaper than the US average, and there are many affordable options. If you are not interested in State Farm, GEICO, and Progressive are just slightly pricier.
What is the minimum auto insurance coverage in New Mexico?
The minimum liability coverage in New Mexico is:
- $25,000 per person and $50,000 per accident for bodily injury
- $10,000 per accident for property damage
However, the insurance companies are required by law to offer you an “Uninsured” policy, and if you want to decline, you have to do so in writing. It covers:
- $25,000 per person/$50,000 per accident for bodily injury
- $10,000 per accident for property damage
Since about 20% of drivers in New Mexico are uninsured, we strongly advise that you don’t refuse the offer.
Is car insurance required in New Mexico?
The state of New Mexico requires its drivers to have at least minimum liability insurance. Another option is depositing $60,000 with the New Mexico State Treasurer to be used in case of an accident.
Insurance companies are required by law to offer “Underinsured” policies to their clients. New Mexico is one of the states with the highest percentage of uninsured drivers, so getting this policy is strongly recommended.
What is the penalty for driving without insurance in New Mexico?
New Mexico has about 22% of uninsured drivers, 10% more than the national average.
Depending on the court’s ruling, people caught driving without insurance can expect a $300 fine or up to 90 days in prison, or both. Failing to surrender their license plates immediately may result in an additional penalty of up to $1,000 and of up to six months of jail time.
Is New Mexico a no-fault state for car insurance?
No, New Mexico is not a no-fault state. Meaning, the at-fault driver is responsible for paying for the bodily injuries and property damages caused by the crash.
But, considering one in five drivers in New Mexico doesn’t have liability coverage, crashes where the at-fault party is not insured are likely to occur. That’s why it’s best to add the “Uninsured” option to your New Mexico car insurance policy.