Average Car Insurance Cost in New Mexico (2025)
Drivers in New Mexico pay an average of $106 per month for car insurance.
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Car insurance in New Mexico costs an average of $144 per month for full coverage and $68 per month for liability coverage. This makes it more affordable than the national averages of $184 for full coverage and $104 for liability-only coverage.
New Mexico’s lower costs may be due to a lower population density throughout much of the state.1 That said, rates have been increasing. As of February 2025, average full-coverage insurance rates had increased by nearly 30% over the past two years — from an annual average of $1,438 in March 2023 to $1,859 in February 2025.
Here’s what you should know about finding car insurance in New Mexico.
How much is car insurance in New Mexico?
In New Mexico, car insurance costs an average of $184 per month ($2,211 per year) for full coverage and $104 per month ($1,246 per year) for liability-only coverage.
Full coverage will pay for injuries or damages you cause to other people and their property, as well as comprehensive coverage and collision coverage, which pays for damage to your vehicle.
A liability-only policy covers bodily injury and property damage to others but not to your vehicle.2 It might meet the state’s minimum-coverage requirements but offers little additional financial protection.
How New Mexico car insurance rates have changed over the past two years
The average price for full-coverage car insurance in New Mexico rose to $1,900 in 2024, up significantly over rates from just a few years ago. Full-coverage rates also rose nationally, though they remain more expensive than in New Mexico.
See how New Mexico car insurance prices have changed over the past two years below.
Average New Mexico car insurance rates by city
Car insurance rates in New Mexico vary by city due to factors like population density, crime rates, car accident frequency, and weather conditions. For example, drivers in a bigger city like Albuquerque typically pay higher premiums because of more traffic congestion and a greater likelihood of accidents and theft.
On the other hand, drivers in a smaller city like Farmington usually pay lower rates due to less traffic and fewer claims.
Insurance companies also consider local repair costs, which can increase average prices in some areas.
Average New Mexico car insurance rates by age and gender
Age and gender can also affect car insurance rates in New Mexico. Younger drivers — especially teens — tend to pay the highest premiums because they have less experience behind the wheel and are more likely to get in accidents.
Rates typically decrease as drivers enter their mid-20s and gain more experience. Senior drivers see their rates rise due to age-related declines in reaction time.
While gender plays a lesser role, young male drivers usually pay more for car insurance than young female drivers because they statistically have a higher rate of severe accidents. But by middle age, gender differences in pricing tend to level out.3
Average cost to insure popular vehicles in New Mexico
The most popular vehicles in New Mexico are the Ford F-Series, Chevy Silverado, GMC Sierra, Ram 1500, and Toyota RAV4, according to Edmunds. These picks reflect the state’s rural landscape, outdoor lifestyle, and need for versatile vehicles.
Pickups dominate the market because many residents use them for work and off-road driving, making them practical for city and rural areas.
Insurance costs for these vehicles vary based on repair costs, theft rates, and safety features. Trucks sometimes cost more due to higher repair and replacement costs.
Below, you can see the average monthly full-coverage insurance costs for the most popular vehicles in New Mexico.
How your driving record affects car insurance rates in New Mexico
Your driving record is one of the most significant factors affecting your car insurance rates in New Mexico. Insurance companies look at your driving history to determine your level of risk.
For example, drivers with clean records typically pay the lowest rates, while people with car accidents, speeding tickets, or driving under the influence (DUI) charges on their records pay more.
Below is a table showing full-coverage rates for a sample driver profile with an incident on their record. If you have violations on your driving record, you can lower your premiums over time by practicing safe driving habits and taking a defensive driving course.
How to lower your insurance costs in New Mexico
Car insurance premiums can add up, but you can reduce your costs while getting the coverage you need in several ways. Here are a few ideas to help lower your premiums: