Average Cost of Car Insurance in New Mexico for 2024

Updated Jan. 25, 2024
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State Farm is generally the cheapest car insurance in New Mexico for full coverage policies.

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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 $1,345, compared to the national average of $1,582. How much you will pay for coverage depends on several factors, including age, location, and credit score.

In this article

Key takeaways

  • The cost of full coverage policies in New Mexico averages $1,345 per year.
  • State-minimum liability coverage costs an average of $498 per year.
  • Teens pay significantly more for insurance, averaging $4,033 per year.

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 $1,345 per year, compared to the national average of $1,582. And state-minimum liability policies average $498 yearly.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,345/year $498/year State Farm
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$4,033/year $1,542/year $2,114/year

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 $1,535/year $591/year
Farmers $1,598/year $614/year
GEICO $1,240/year $474/year
Progressive $1,242/year $630/year
State Farm $992/year $387/year
USAA $1,032/year $255/year

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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 $2,312 for coverage, hundreds more than the state average.

Credit health Avg. annual premium
Poor (550-649) $2,312/year
Average (650-699) $1,793/year
Good (700-749) $1,554/year
Excellent (750+) $1,398/year

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.

A driving under the influence (DUI) conviction can increase premiums by an average of $1,404 per year, and an at-fault accident may increase your premiums by about $947 per year.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,345/year $2,292/year $947
DUI $1,345/year $2,749/year $1,404
Speeding ticket $1,345/year $2,022/year $677

*Assumes clean driving record with good credit

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, an 18-year-old will pay an average of $4,225 per year 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. annual premium
18 $4,225/year
25 $1,653/year
30 $1,489/year
40 $1,439/year
60 $1,398/year

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 $1,787 per year, which is significantly higher than the state average.

City Avg. annual full-coverage premium
Rio Rancho $1,787/year
Santa Fe $1,607/year
Roswell $1,573/year
Las Cruces $1,476/year
Farmington $1,399/year

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.


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 $1,345 per year, compared to the national average of $1,582.

How much is car insurance per year in NM?

The average cost of car insurance in New Mexico is $1,345 per year for full coverage protection. Drivers opting for state-minimum liability insurance pay a yearly average of $498.

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.