Cheap Auto Insurance in New Mexico (2025)
National 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 $144 for full coverage. This is lower than the national average of $104 for minimum coverage and $184 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.
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: National 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 $144 per month for full coverage. The table below shows the cheapest full-coverage auto insurance companies in New Mexico.
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 $79 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.