Cheapest car insurance in New Mexico for 2025

In the search for cheap car insurance in New Mexico, Bankrate’s insurance editorial team first worked with Quadrant Information Services to obtain current premium information for the largest insurance companies in the state. On average, car insurance in New Mexico costs $436 per year for minimum coverage and $2,207 for full coverage. However, the price of New Mexico car insurance is likely not your only consideration when looking for great coverage. With this in mind, we also reviewed each company’s available coverage types, discounts, policy features and third-party rankings.

Key takeaways

• Cheapest company for minimum coverage: Central Mutual
• Cheapest company for full coverage: Geico
• Cheapest company for drivers with prior incidents: Central Mutual
• Cheapest company for young drivers: Central Mutual

Like most states, New Mexico requires its drivers to carry at least liability only coverage, also known as minimum coverage. In New Mexico, minimum coverage includes bodily injury liability and damage liability. Bankrate found that Central Mutual offered the cheapest car insurance in New Mexico for minimum coverage in our analysis.

Minimum coverage requirements for New Mexico drivers

Car insurance is legally required in New Mexico, as it is in most states. To drive legally in New Mexico, you must carry at least the following minimum limits:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $10,000 property damage liability to others

New Mexico car insurance companies are also required to offer you uninsured motorist coverage and underinsured motorist coverage in the same limits as your liability coverage, but you do have the option to reject these coverage types in writing. However, over 21 percent of New Mexico drivers are estimated to be uninsured, so accepting these coverage types could offer financial protection if you are hit by an uninsured or underinsured driver. The average cost of minimum coverage for a New Mexico driver is $436.

Drivers looking for cheap auto insurance in New Mexico will often pay the lowest rate if they buy minimum coverage insurance. However, minimum limits do not provide you any coverage for damage to your own vehicle. For that, you need full coverage, which adds comprehensive and collision insurance. If you finance or lease your vehicle, your lender will likely require full coverage.

Although not required by law, many drivers elect to purchase full coverage car insurance to further protect themselves from financial risk. Full coverage includes collision and comprehensive coverage, both of which are designed to pay out toward your own costs instead of others. We found that Geico offered the lowest average rates for full coverage.

One of the most significant variables in car insurance rates is the driving record. Traffic violations can lead to significant rate increases for drivers in New Mexico. Below are the cheapest carriers, on average, for drivers with a variety of previous incidents on their record:

• Cheapest car insurance for drivers with a ticket: Central Mutual
• Cheapest car insurance for drivers with an at-fault accident: Central Mutual
• Cheapest car insurance for high-risk drivers: Central Mutual

Cheapest insurance companies for drivers in New Mexico with a speeding ticket: Central Mutual

Your driving record impacts your auto insurance rates, and even a single speeding ticket may cause your premium to increase. While your current insurer may not increase your rate too much if you have an overall history of safe driving, it’s still worth shopping around after a speeding ticket to ensure you’re still getting the lowest possible rate. Bankrate found Central Mutual offers the lowest average rates for drivers with a speeding ticket.

Cheapest car insurance for drivers in New Mexico with an at-fault accident: Central Mutual

As is true with speeding tickets, being involved in an at-fault accident may leave insurers hesitant to offer you low rates. If you have accident forgiveness as part of your policy, a single accident may not impact your rate. Multiple accidents, however, are likely to cause an increase in your rate. Some companies may even deny coverage to drivers with many at-fault accidents on their record. Bankrate found Central Mutual offers the lowest average rates for drivers with an at-fault accident on their record. If you've been in an accident and are looking for cheaper rates, you may want to explore quotes from the following carriers:

Cheapest car insurance in New Mexico for high-risk drivers: Central Mutual

Although each insurer may define high-risk drivers differently, you may be classified as high-risk if you have multiple speeding tickets or accidents on your record. A DUI conviction may also place you in this category and will likely substantially raise your rate. Following a DUI conviction or other infraction that puts you in the high-risk category, you may want to shop around to see which carrier might offer you reasonably priced insurance. Note that not all carriers will extend coverage to drivers with a DUI, so you may need to contact the company directly about coverage for high-risk drivers. Bankrate found that Central Mutual offers the lowest average rates for high-risk drivers in our analysis.

Age is another significant factor that impacts auto insurance rates in most states. Younger drivers are among the costliest to insure and have some of the highest rates of traffic incidents. Because of that, finding cheap car insurance for young adults can be an important priority. Below are the companies we found to offer the best rates for young drivers in different circumstances:

• Cheapest car insurance for insuring a teen driver: Central Mutual
• Cheapest car insurance for teens with a ticket: Central Mutual
• Cheapest car insurance for teens with an at-fault accident: Central Mutual
• Cheapest car insurance for young drivers with a DUI: Progressive

Cheapest New Mexico car insurance for insuring a teen driver: Central Mutual

Since teens don't have years of experience behind the wheel, they are statistically at high risk of having accidents. In general, they or their parents will likely experience above-average car insurance rates. However, parents with teen drivers may be able to find affordable coverage by choosing a company that does not weigh drivers' age as heavily and has teen discounts or student discounts. If you're looking for the cheapest rates for yourself and your teen driver, you might consider one of these companies.

Cheapest New Mexico car insurance for teens with a ticket: Central Mutual

Teens with a speeding ticket can face even higher rates than they already would simply being young. With teen rates already so high, it's important to find affordable rates when insuring a teen in this situation. Bankrate found that Central Mutual offered the lowest average rates to teens with speeding tickets in our analysis.

Cheapest New Mexico car insurance for teens with an at-fault accident: Central Mutual

Being at fault for an auto accident can significantly increase your rates, and if you're dealing with a teen driver, then those rates could become unaffordable. In these situations, it can become essential to look for carriers that specialize in high-risk driver insurance. Bankrate found that Central Mutual offered the lowest average rates to teens with an at-fault accident on their record, but below are further options:

Cheapest New Mexico car insurance for young drivers with a DUI: Progressive

Finding affordable auto insurance for a teen with a DUI can be difficult, as it's effectively combining two of the most significant risk factors in auto insurance underwriting. Bankrate found that Progressive offered the lowest average rates in our analysis for a teen driver with a DUI.

Most companies offer at least a few discounts that could lower your premium. Bundling your home, condo or renters insurance with your auto insurance is often one of the biggest discounts. Here are some of the other common ones you could ask your insurer about:

• Young driver discounts: Some insurers offer discounts to students in high school and college who earn a "B" grade or better. Others have discounts for young drivers who take a defensive driving course or enroll in a telematics program. Students who attend college away from home without a vehicle may also save on their premium. 
• Safe driver discounts: Demonstrating safe driving may earn you a discount with some carriers. One example is telematics programs that monitor an individual's driving abilities in real time. Drivers who take defensive driving classes or who avoid claims for a number of years (usually three to five) may also earn a lower rate.
• Loyalty discounts: Once you’re with the same insurance company for a few years, you may qualify for a loyalty discount. Contact your insurer before your renewal date to determine if you can get a lower premium. 
• Other discounts: Discounts are usually available for vehicle safety and anti-theft devices, and most insurers offer discounts for those who insure multiple cars with the same company. Some professions — such as teachers, military members and first responders — may also be eligible for discounts with some insurance companies.