Cheap Auto Insurance in New Mexico (2025)
The General offers the cheapest car insurance in New Mexico. Liability rates start at $59 per month.
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New Mexico drivers pay a monthly average of $68 for minimum coverage and $137 for full coverage. This is lower than the national average of $101 for minimum coverage and $179 for full coverage.
The average cost of full coverage in New Mexico increased by 13% between 2023 and 2024, potentially due to a surge in the state’s accident frequency and severity and the escalating costs of vehicle repairs.
Here’s what you should know about finding cheap car insurance in New Mexico.
Quick Facts
New Mexico drivers pay an average of $1,648 per year for full-coverage insurance.
DWI convictions in New Mexico stay on your record for 55 years.1
New Mexico has the fourth-highest percentage of uninsured drivers, at 21.8%, according to the Insurance Research Council.
3 of the cheapest car insurance companies in New Mexico
The best car insurance company for you will depend on your specific needs as a driver, your driving record, and more. Progressive, Allstate, and Midvale Home & Auto are three of the cheapest car insurance companies in New Mexico. Learn more about their coverage offerings below.
Progressive
Allstate
Midvale Home & Auto
How to get the cheapest car insurance in New Mexico
Comparing quotes is the best way to get cheap car insurance rates in New Mexico. A highly saturated industry means constant competition. You might have the cheapest rate one year, then discover that new rates, discounts, or incentives from another insurer may benefit you more.
Here are other ways you can lower your rate as soon as your next premium is due:
Reconsider coverage. If your vehicle is worth less than 10 times your annual premium, you can remove some add-ons, like full-coverage auto insurance. Consider how much coverage you need.
Increase your deductible. You’ll have to pay more when filing a claim, but a higher deductible for collision and comprehensive leads to lower premiums.
Look for car insurance discounts. Auto insurance companies offer car insurance discounts for driving accident-free for a certain period, being a student and earning good grades, having vehicle safety features, and taking an approved defensive driving course.
Bundle policies. If you need another insurance product, like home insurance or renters insurance, you can buy multiple policies with one insurer for a bundling discount.
Compare quotes. One of the best ways to get lower rates is to request quotes from different companies and compare them. Then, you can choose the insurer with the best options for you.
Cheapest liability-only car insurance quotes in New Mexico: The General
When you see the cheapest car insurance policies available in New Mexico, many of them will likely be liability-only policies. Liability-only car insurance provides the bare-minimum coverage state law requires. A liability-only policy covers bodily injury liability and property damage liability in most states, including New Mexico.
In New Mexico, liability-only insurance costs an average of $68 per month. Here are the cheapest car insurance companies for liability insurance in New Mexico.
Cheapest full-coverage car insurance quotes in New Mexico: Root
Whereas liability-only insurance provides a low level of coverage, full-coverage car insurance policies can provide coverage beyond property and bodily liability. The biggest difference: Liability coverage pays for damages you cause others, while full coverage covers damages you incur.
The best car insurance companies throughout New Mexico may define full coverage differently. Many may offer full-coverage policies that combine liability insurance with collision and comprehensive insurance. Others may add onto this by also providing personal injury protection (PIP) or uninsured/underinsured motorist coverage.
New Mexico drivers pay an average of $137 per month for full coverage. The table below shows the cheapest full-coverage auto insurance companies in New Mexico.
Your age will likely affect how much you pay for car insurance. Teen drivers typically pay the highest car insurance rates due to a lack of driving experience and a higher risk of car accidents.
Premiums tend to decrease as drivers age, so long as the drivers don’t have a spotty driving record. But senior drivers 70 and older may face an uptick in premiums due to aging-related risk factors.2
Below, you can see average monthly insurance quotes for New Mexico drivers by age group.
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Car insurance requirements in New Mexico
New Mexico is an at-fault state, which means that the driver most at fault is responsible for paying the other parties’ damages. The New Mexico Tort Claims Act is also in effect, which specifies when a driver can seek payment for damages from government employees who are at fault in an accident. State law only requires drivers to have bodily injury and property damage liability coverages.
New Mexico requires the following coverages and limits for drivers:3
New Mexico requires liability insurance, but it’s not the only type of insurance available. No matter if you live in Las Cruces or Albuquerque, It’s a good idea to consider optional, additional coverages that protect against other types of bodily and property damage, including:
Cheapest car insurance in New Mexico by driving record
Speeding tickets, at-fault accidents, and driving while intoxicated (DWI) convictions may vary in severity, but they’re all incidents that can increase your insurance rates. Insurance companies view drivers with incidents on their record as a higher risk to insure.4
On average, New Mexico drivers with an incident on their record pay $77 per month for liability coverage. Drivers with a clean record pay $68 for the same coverage.
Here are average liability insurance quotes for New Mexico drivers by incident type.
The cost of car insurance varies by city and ZIP code due to location-based factors like crime rates, accident frequency, population density, and more. Drivers in bigger cities like Albuquerque and Sante Fe typically pay more for auto coverage than residents in less populated rural areas.
Below, you can compare average quotes for car insurance in several New Mexico cities.
New Mexico car insurance FAQs
Compare car insurance rates by state to see how New Mexico’s average rates stack up against the rest of the country. Here are the answers to common questions about car insurance in the state.
The average cost of car insurance in New Mexico is $68 per month for liability-only insurance and $137 per month for full coverage. Your premium will depend on a number of factors, including your ZIP code, age, driving record, and more.
At an average of $59 per month for liability-only car insurance, The General has the cheapest car insurance rates in New Mexico. National General and Progressive also have cheap rates, at $60 and $65, respectively, for liability car insurance.
Some of the best car insurance companies in New Mexico are State Farm and USAA. These auto insurers have high J.D. Power customer satisfaction ratings in the Southwest region, strong AM Best financial ratings, and high Insurify Quality (IQ) Scores.
But the best car insurance company for you will depend on your situation. It’s important to get quotes from multiple insurance companies and see your individual rates to determine which one offers you the best rate for the right coverage.
Compared to neighboring states, yes, New Mexico’s average car insurance costs are cheaper. For example, the average annual cost of car insurance in Nevada is $2,382, while New Mexico’s is $1,230. But New Mexico’s car insurance rates have been rising rapidly over the past year. You should comparison shop for the best rate available to you before renewing a policy with your current company.
No. New Mexico isn’t a no-fault state. Per New Mexico law, the at-fault driver in an accident is responsible for paying for the other parties’ property damages and injuries.5
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