Best Car Insurance in New Mexico for 2024

Updated March 1, 2024
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State Farm generally has the lowest car insurance costs in New Mexico.

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From artist enclaves like Santa Fe and Taos to 465 miles of the famed Route 66, ghost towns, and scenic byways, New Mexico has a lot for locals to explore by car. Thankfully, the cost of car insurance in the Land of Enchantment is generally below the national average.

In this article

Key takeaways

  • The best car insurance in New Mexico comes from State Farm, which averages $992 annually for comprehensive coverage.
  • Drivers with a clean driving record pay an average of $112 per month in New Mexico.
  • Rio Rancho residents generally pay an average of $1,787 per year for car insurance, the most in the state.

Best car insurance companies in New Mexico

USAA generally has the lowest cost minimum coverage on our list for New Mexico, averaging $255 annually. State Farm has the best car insurance price for full coverage insurance, averaging $992 annually, and earned high customer satisfaction scores.

Farmers had drastically higher full coverage insurance, about $1,598 per year, on average. Progressive had the highest cost for minimum coverage, averaging $630 annually.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 879/1,000 $1,032/year $255/year
State Farm 835/1,000 $992/year $387/year
Progressive 809/1,000 $1,242/year $630/year
GEICO 804/1,000 $1,240/year $474/year
Allstate 801/1,000 $1,535/year $591/year
Farmers 781/1,000 $2,052/year $396/year

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USAA: Highest customer satisfaction

USAA is only available to military members and their families, but it earned the highest customer satisfaction score on our list. Although its full coverage insurance was more expensive than some competitors, it may be worth paying a little more for the excellent customer service if you qualify for a policy.

  • USAA offered the lowest minimum car insurance cost in New Mexico
  • It has multiple discounts, including up to 10% for bundling a home and auto policy
  • USAA insurance is not available to the general public
  • You may find more specialty coverage options with another carrier

Get a quote now | USAA review

State Farm: Most affordable coverage

State Farm has the most affordable full coverage insurance in New Mexico, averaging $992 a year. It also earned the second-highest customer satisfaction score and has various general and specialty policy options. State Farm is a good option in New Mexico, but you may find more discounts with another carrier.

  • State Farm had the second-lowest minimum car insurance cost in the state
  • It has local agents throughout New Mexico
  • It does not have some specialty policies like gap insurance
  • You may find more discounts with a competitor

Get a quote now | State Farm review

Progressive: Best for high-risk drivers

High-risk drivers, like those with DUIs, multiple speeding tickets, or at-fault accidents on their records, may have trouble finding car insurance. When they do, they usually pay higher rates. Although Progressive’s pricing was higher than many of its competitors in New Mexico, it does insure high-risk drivers and can file SR-22 forms required by the courts.

  • Progressive has multiple policy options, including accident forgiveness
  • It had the third-highest customer service rating in New Mexico
  • Progressive had the most expensive minimum coverage in New Mexico
  • You’ll likely find cheaper full coverage insurance with a competitor

Get a quote now | Progressive review

GEICO: Best for senior drivers

Although GEICO had the second highest minimum car insurance rate in New Mexico, senior drivers may find it a good option. GEICO offers a Prime Time contract add-on, guaranteeing policy renewal for people over 50. Drivers over 50 may also qualify for additional discounts like completing a defensive driving course or being retired military members.

  • GEICO had below-average costs on both full and minimum car insurance
  • It has some specialty policies like mechanical breakdown coverage
  • GEICO earned low customer service scores in New Mexico
  • There is only one GEICO agent in the state

Get a quote now | GEICO review

Allstate: Best for coverage options

Allstate had relatively expensive full coverage and minimum insurance costs compared to most competitors in the state. It also earned the second-lowest customer satisfaction score in the state. However, Allstate may be a good choice for some drivers, as It offers multiple policy types, including gap coverage, a vanishing deductible, and numerous discount options.

  • Allstate offers multiple policy add-ons, including accident forgiveness
  • It has agents and offices throughout the state
  • Allstate only earned 801 out of 1,000 in customer satisfaction
  • Its full coverage insurance was higher than many competitors

Get a quote now | Allstate review

New Mexico auto insurance requirements

All drivers in New Mexico must carry at least the state-specified minimum amounts. Those amounts are:

  • $25,000 in bodily liability for the injury or death of one person in an accident
  • $50,000 in bodily liability for the injury or death of two or more people in an accident
  • $10,000 in property damage liability for damage in any one accident

Since the costs of an accident can be much more than the minimum amounts of an insurance policy, it’s generally a good idea to carry higher limits on your auto policies if you can afford to.

How to choose a car insurance provider in New Mexico

Consider the following to help you find the best car insurance carrier:

  • Ensure a company pays claims: Check the financial rating of each insurance company on a website like AM Best to confirm they can afford to pay claims. It’s also wise to confirm a company is licensed in New Mexico by checking the New Mexico Office of Superintendent of Insurance or the National Association of Insurance Commissioners (NAIC).
  • Compare pricing: Getting quotes from multiple insurance companies can help you ensure you’re getting the best deal. Compare the coverage amounts and add-on features each company offers so you know you’re getting an accurate comparison.
  • Get your discounts: Discount types and amounts vary by insurance company. As you compare quotes, check that you have received every discount you’re eligible for.
  • Pay attention to reviews: Read review websites like the Better Business Bureau to see how (or if) a company responds to customer complaints and solves problems. Ask friends or family members for recommendations, especially if you have just moved or are unhappy with your current coverage.

How much does car insurance cost in New Mexico?

The average cost of car insurance in New Mexico is $1,345 for full coverage and $498 annually for minimum coverage.

Drivers in Rio Rancho tend to pay the highest premiums in the state, with an annual average of $1,787. Farmington drivers pay the least for their car insurance, an average of $1,399 annually.

New Mexico car insurance rates by city

Rio Rancho drivers spend hundreds more per year on car insurance than the state average of $1,345, which is likely due (in part) to the city’s higher crime rate. According to the analytics website NeighborhoodScout, Rio Rancho residents have a one in 60 chance of experiencing vehicle theft or other property crimes. Insurance companies tend to charge more for their coverage since the likelihood of a claim is higher in places with more crime.

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


Our analysis was conducted using six different auto insurance marketplaces to determine the best 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 New Mexico

What are the minimum car insurance coverage requirements in New Mexico?

New Mexico’s minimum car insurance requirements are $25,000 in bodily liability for the injury or death of one person in an accident and $50,000 for the injury or death of two or more people. Drivers must carry at least $10,000 in property damage liability. 

How much does car insurance cost in New Mexico?

Drivers in New Mexico pay an average of $1,345 per year for full coverage insurance and $498 annually for the state’s minimum coverage. 

Which car insurance companies cover New Mexico?

Multiple car insurance companies cover New Mexico, including State Farm, Allstate, USAA, Progressive, and GEICO. 

What is the cheapest car insurance company in New Mexico?

USAA offers the cheapest minimum car insurance in New Mexico, with an annual average of $255. State Farm averages $992 per year for full coverage insurance, the lowest in the state.

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.