New Mexico car insurance

New Mexico is among the most affordable states for car insurance, with full-coverage policies averaging about $159 per month.

While the state’s minimum liability requirements are low, it ranks among the worst for uninsured drivers, with nearly one in four motorists carrying no insurance.¹This article covers car insurance in New Mexico, including its unique approach to uninsured/underinsured motorist coverage.

Full-coverage car insurance in New Mexico averages about $159 per month, or $1,904 per year. This is about 15% below the national average of $2,245.

If you want the state minimum coverage, skipping collision and comprehensive coverage, New Mexico averages about $49 per month, or $592 per year.

For most drivers, New Mexico requires every registered vehicle to carry at least 25/50/10 in liability insurance.²

This includes up to $25,000 per person and $50,000 per crash for bodily injury, plus $10,000 for property damage.

Liability insurance pays other people for harm your vehicle may cause them. It does not cover your vehicle or injuries. For that, you need collision and comprehensive coverage, or “full coverage,” in insurance industry shorthand.If your vehicle is financed, the lender or lienholder will typically require you to carry full coverage, not just liability.

Is state minimum coverage enough in New Mexico?

The $10,000 property-damage floor is low by national standards. The average new vehicle now costs far more than that, so a single at-fault crash could exhaust your coverage. You will be personally responsible for the rest.

If you have assets to protect, consider getting a quote for $50,000 or $100,000 in property-damage liability, instead of just $10,000. You may find the additional coverage is just a few dollars more per month.

Does New Mexico require uninsured motorist/under-insured motorist coverage?

By law, New Mexico insurers must offer you uninsured/underinsured motorist (UM/UIM) coverage up to the liability limits you buy for yourself.³ These are as follows:

• Uninsured motorist coverage: Pays for your injuries when an at-fault driver has no insurance or flees the scene. 

• Underinsured motorist coverage: Fills the gap when the at-fault driver's limits are too low to cover your losses.

This coverage is automatically included in your quoted policy, unless you specifically opt out or choose lower limits.⁴

About 24.1 percent of New Mexico drivers were uninsured in 2023, second-highest in the nation and well above the 15.4 percent national rate, according to the Insurance Research Council.¹ Statewide, that is roughly one in four drivers with no liability insurance at all.

Many other drivers only carry the state minimum, which can render them incapable of replacing your heavily damaged or totaled vehicle. 

While declining UM/UIM coverage may save a few dollars monthly, it’s worth considering to decrease your financial risk if you are struck by an uninsured or underinsured motorist.

The cheapest car insurance companies in New Mexico are USAA, GEICO, and Progressive, on average.

Here are some of the most common rating factors that insurers use to calculate New Mexico insurance premiums:⁵

Driving record

Luva Research ranks New Mexico among the ten worst states for driving overall, with one of the highest per-capita road-fatality rates in the country.⁶ 

Tickets, at-fault accidents, and a DUI each raise your New Mexico rate, as shown below:

Coverage Level

Full coverage runs about three times the state minimum here, and higher liability limits cost more, though individual rates can vary.

Location

Claim frequency, theft, and repair costs differ between Albuquerque and rural counties. Insurers price that in. Here’s a look at how rates vary by New Mexico city:

Credit

New Mexico allows insurers to use a credit-based insurance score, subject to state restrictions. A stronger personal credit profile may mean a lower premium.

In New Mexico, a driver with good credit pays an average of $159 a month for car insurance, while a driver with poor credit pays $244.

Vehicle, age, and mileage

The car you drive and how much you drive it play a role. Some cars get stolen more than others, or cost more to repair. Your premium will reflect these risk factors.

The best way to find cheap coverage in New Mexico is to compare the same limits and deductibles across several carriers. Luva pulls personalized quotes from competing insurers, so you're comparing true apples-to-apples prices. Here are some tips to get the best possible results when comparison shopping:

• Compare identical coverage across companies. Use the same coverage limits and deductibles in each quote you run.

• Ask about discounts. Carriers may offer a variety of discounts that lower your cost, such as good student, low mileage, multi-vehicle, telematics, or bundling policies, such as homeowner’s and renter’s insurance. Any of these can help lower your premiums.⁷

• Mind your credit. With insurers that use credit-based insurance scoring, maintaining a stronger score over time may help lower your rate.

• Don’t let coverage lapse. Most insurance companies charge more if you have a recent lapse on your record than they do if you maintain continuous coverage.

• Shop around every renewal. Rates change over time, so compare your renewal premium against several competing quotes.