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Average Cost of Car Insurance in New Mexico for 2025

State Farm is generally the cheapest car insurance in New Mexico for full coverage policies.
Updated June 12, 2025
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New Mexico is home to some of the country's most beautiful national forests and monuments. And for those relocating to the state, auto coverage is cheaper in the Land of Enchantment than in many other places.

The average cost of car insurance in New Mexico is $152, compared to the national average of $194. How much you will pay for coverage depends on several factors, including age, location, and credit score.

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Key takeaways

  • The cost of full coverage policies in New Mexico averages $152 per month.
  • State-minimum liability coverage costs an average of $69 per month.
  • Teens pay significantly more for insurance, averaging $310 per month.

How much does car insurance cost in New Mexico?

Car insurance in New Mexico is relatively inexpensive. The average cost of full coverage policies — which includes liability, collision, and comprehensive insurance — is $152 per month, compared to the national average of $194. And state-minimum liability policies average $69 monthly.

Avg. cost for full coverage Avg. cost for liability coverage Cheapest insurance provider
$152/month $69/month State Farm
Avg. full coverage cost for teen drivers Avg. full coverage cost for seniors (60s) Avg. full coverage cost for drivers with an accident on their record
$310/month $115/month $230/month

Average cost of car insurance in New Mexico by provider

Several major insurance companies underwrite coverage in New Mexico. State Farm has the lowest average premiums for full coverage insurance.

However, USAA has the following cheapest premiums, making it a useful alternative for those eligible for membership or insurance.

Provider Full coverage Minimum liability coverage
Allstate $256/month $114/month
Farmers $305/month $136/month
GEICO $182/month $136/month
Progressive $127/month $68/month
State Farm $129/month $58/month
USAA $156/month $69/month

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Drivers who switch their auto insurance and save with State Farm save $764 on average!

How does credit score affect car insurance rates in New Mexico?

Your credit history affects your ability to qualify for loans or credit cards and how much you pay for car insurance. In New Mexico and other states, insurers can use your credit to determine your rates.

Those with poor credit, meaning a score between 550 and 649, pay an average of $173 for coverage, hundreds more than the state average.

Credit health Avg. monthly premium
Poor (550-649) $173/month
Average (650-699) $145/month
Good (700-749) $145/month
Excellent (750+) $154/month

Average car insurance rates for high-risk drivers in New Mexico

New Mexico is one of the worst states for drunk driving based on alcohol-related driving fatalities. Besides the safety risks of driving recklessly, it can also impact you financially.

Violation Avg. monthly premium before violation* Avg. monthly premium after violation
At-fault accident $152/month $230/month
DUI $152/month $261/month
Speeding ticket $152/month $225/month

*Assumes clean driving record with good credit

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How does age affect car insurance rates in New Mexico?

Age is another significant factor that insurance companies consider when setting premiums. Teens tend to have higher incidence rates of accidents, so insurers charge them higher premiums than other age groups.

In New Mexico, a 17-year-old will pay an average of $310 per month for insurance, more than three times the state average. Premiums usually decrease as you age, with drivers in their 60s paying the lowest rates.

Age Avg. monthly premium
17 $310/month
25 $212/month
30 $156/month
40 $143/month
60 $115/month

New Mexico car insurance rates by city

Rio Rancho has a significantly higher population density than the rest of the state and a higher percentage of people under 18. Due to those factors, drivers in Rio Rancho are more likely to be involved in accidents, so insurance companies charge them higher rates. 

The average premium for Rio Rancho drivers is $160 per month, which is significantly higher than the state average.

City Avg. monthly full-coverage premium
Rio Rancho $160/month
Albuquerque $173/month
Santa Fe $142/month
Roswell $133/month
Las Cruces $141/month
Farmington $117/month

NM's minimum car insurance requirements

Car insurance is required by law for all drivers in New Mexico. Policies must meet these minimums:

  • $25,000 in bodily injury protection for one person
  • $50,000 in bodily injury protection for two more people
  • $10,000 in property damage insurance

Those coverage requirements, particularly for property damage coverage, are relatively low. According to the Insurance Research Council, 21.8% of drivers in New Mexico are uninsured, so you may want to consider purchasing full coverage to protect your vehicle.

How to save money on car insurance in New Mexico

In New Mexico, you may save money on your car insurance policy with these tips:

  • Talk to your agent: You may be eligible for discounts you didn't know existed. Depending on the insurer, you could qualify for a claims-free discount, low mileage discount, or discounts for completing safe driver courses.
  • Enroll in pay-per-mile coverage: Pay-per-mile policies are a good option for New Mexico drivers who cover fewer-than-average miles. Because these policies base your premiums on how much you drive and how safely you operate your vehicle, you could save money. In New Mexico, several companies, including Progressive and State Farm, sell pay-per-mile policies.
  • Shop around: No one company offers the lowest rates for every driver; you may find that some companies offer you coverage for hundreds less than other insurers charge. Request quotes from several companies to find the best car insurance rates.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in NM

Is car insurance expensive in NM?

If you're looking to buy car insurance in New Mexico for the first time, car insurance is typically less expensive than in other states. The average cost is $152 per month, compared to the national average of $194.

Data throughout provided by Insurify

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  • You could save up to $600 with some companies.
  • Compare dozens of providers in under 5 minutes.
  • Fast, free, and easy way to shop for insurance.
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