Like most states, car insurance is required in New Mexico, and finding the best car insurance in the state may take some comparison shopping. New Mexico drivers have access to several strong insurers, so Reviews.com analyzed current market estimates and third-party benchmarks to help you identify the right coverage for your needs.
The 4 Best Auto Insurance Companies in New Mexico
To find the best car insurance companies in New Mexico, we reviewed current statewide premium estimates from Bankrate and ValuePenguin, and we evaluated each company’s coverages, discounts, digital tools, and third-party indicators such as the J.D. Power 2024 U.S. Auto Insurance Study (Southwest) and the NAIC Consumer Complaint Index. Based on our research, we found that these four companies sell some of the best car insurance in New Mexico:
- USAA: Best for Military-Centric Options
- Allstate: Best for Add-On Coverage
- State Farm: Best for Local Agencies
- Geico: Best for Discounts
Compare the Best Car Insurance Companies in New Mexico
We chose these four companies based on our updated methodology to help give you a well-rounded view of each carrier. The best company for you will depend on your specific wants, needs, and situation.
| AVERAGE ANNUAL MINIMUM | AVERAGE ANNUAL FULL | AM BEST AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. POWER** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin USAA** | $270 | $1,102 | A++ | 863 | |
| Pin Allstate | $476 | $1,893 | A+ | 822 | |
| Pin State Farm | $354 | $1,396 | A++ | 847 | |
| Pin Geico | $348 | $1,463 | A++ | 829 |
Note: The comparison table above reflects historical averages from 2021 and Southwest satisfaction figures from that period. As of 2025, statewide premiums are generally higher; see current estimates from Bankrate and ValuePenguin.
*2021 premium data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Satisfaction Study for the Southwest region. Based on a 1,000-point scale. USAA is not officially ranked by J.D. Power due to eligibility restrictions. For the latest Southwest results, see the 2024 U.S. Auto Insurance Study.
Best for Military-Centric Options
WHY WE CHOSE IT
Why we chose it
Pros
- High J.D. Power customer satisfaction score
- Lowest average premium on our list
- Superior AM Best financial strength
Cons
- Limited eligibility
- Very few branch locations
- Fewer discounts are advertised than some competitors
OTHER POLICIES OFFERED
- Antique/classic car
- Home
- Landlord
- Life
STANDOUT DISCOUNTS AVAILABLE
- SafePilot
- Family
- Military on-base
- Automatic payments
Best for Add-On Coverage
WHY WE CHOSE IT
Why we chose it
Pros
- Several endorsements available
- Numerous discounts
- Local agencies available
Cons
- Below-average J.D. Power customer satisfaction rating
- AM Best financial strength is lower than many competitors
- Higher-than-average premium
OTHER POLICIES OFFERED
- Motorcycle
- Home
- Renters
- Business
STANDOUT DISCOUNTS AVAILABLE
- Drivewise
- Smart student
- Early signing
- EZ pay plan
Best for Local Agencies
WHY WE CHOSE IT
Why we chose it
Pros
- Above-average J.D. Power customer satisfaction rating
- Superior AM Best financial strength
- Local agencies available
Cons
- Accident forgiveness can only be earned, not purchased
- Not the lowest average premiums in New Mexico
- No gap insurance
OTHER POLICIES OFFERED
- Home
- Manufactured home
- Farm and ranch
- Boat
STANDOUT DISCOUNTS AVAILABLE
- Drive Safe & Save
- Steer Clear
- Student away at school
- Vehicle safety
Best for Discounts
WHY WE CHOSE IT
Why we chose it
Pros
- Numerous discounts available
- Superior AM Best financial strength
- Robust digital tools
Cons
- Limited endorsements available
- J.D. Power score is just below average
- Higher-than-average overall NAIC complaint index
OTHER POLICIES OFFERED
- Homeowners
- Renters
- Motorcycle/ATV
- Boat
STANDOUT DISCOUNTS AVAILABLE
- Federal employee
- Military
- Emergency deployment
- New vehicle
*2021 premium data provided by Bankrate.com.
**J.D. Power 2021 U.S. Auto Insurance Study rating for the Southwest region. Based on a 1,000-point scale. USAA is not officially ranked due to eligibility restrictions. For current Southwest results, see the 2024 U.S. Auto Insurance Study.
The Average Cost of Car Insurance in New Mexico
Current market estimates indicate that the average cost of car insurance in New Mexico is roughly the mid–$300s to mid–$500s per year for a minimum coverage policy and roughly the mid–$1,500s to mid–$1,700s per year for a full coverage policy, depending on the source and driver profile, according to Bankrate and ValuePenguin. The most recent official benchmark from the NAIC Auto Insurance Database Report reflects 2022 policy-year “average expenditure” and is lower than today’s quotes amid recent premium inflation shown in the BLS CPI for motor vehicle insurance. One of the biggest factors that may impact car insurance quotes in New Mexico is the state’s high share of uninsured drivers: in 2022, approximately 24.9% of drivers were estimated to be uninsured.
Top 3 Cheapest Car Insurance Companies in New Mexico
| Company | Average Annual Full Coverage Premium* |
| USAA | $1,102 |
| Farmers | $1,278 |
| Progressive | $1,310 |
* Historical averages shown; current market rates are typically higher. See Bankrate and ValuePenguin for up-to-date statewide and city estimates.
Top 3 Most Expensive Car Insurance Companies in New Mexico
| Company | Average Annual Full Coverage Premium* |
| Allstate | $1,893 |
| Central | $1,541 |
| Iowa Farm Bureau Group | $1,498 |
* Historical averages shown; current market rates are typically higher. See Bankrate and ValuePenguin for up-to-date statewide and city estimates.
Top 3 Cheapest Cities for Car Insurance in New Mexico
| City | Average Annual Full Coverage Premium* |
| Alamogordo | $1,199 |
| Holloman AFB | $1,224 |
| Deming | $1,235 |
* Historical averages shown; current market rates are typically higher. See Bankrate and ValuePenguin for up-to-date statewide and city estimates.
Top 3 Most Expensive Cities for Car Insurance in New Mexico
| City | Average Annual Full Coverage Premium* |
| South Valley | $1,719 |
| Isleta | $1,617 |
| Albuquerque | $1,614 |
* Historical averages shown; current market rates are typically higher. See Bankrate and ValuePenguin for up-to-date statewide and city estimates.
Key Things to Know About Car Insurance in New Mexico
Before you purchase car insurance in New Mexico, there are a few things to consider. The state has an elevated estimated percentage of uninsured drivers—about one in four in 2022—which means you may want to carry uninsured and underinsured motorist (UM/UIM) coverage at limits comparable to your liability limits. Insurers must offer UM/UIM in New Mexico, and rejection must be made in writing. See consumer guidance from the New Mexico Office of Superintendent of Insurance and the governing statute NMSA 66-5-301.
New Mexico Car Insurance Requirements
Like most states, New Mexico requires drivers to purchase policies with at least minimum coverage types and levels. In the Land of Enchantment, you must carry at least the following limits (see NMSA 66-5-215):
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $10,000 property damage liability per accident
Insurance companies must offer you uninsured and underinsured motorist coverage as well. Although you have the option of declining these in writing, you may want to consider these coverages due to the higher number of uninsured motorists in the state.
Car Insurance Coverage Options
New Mexico drivers are only required by law to carry bodily injury and property damage liability coverage. However, there are a few other coverages that drivers may want to consider for added protection.
- Collision insurance: Collision insurance pays for your vehicle’s repairs after colliding with something, regardless of fault. This is part of “full coverage” and is required if you have a loan or lease on your vehicle.
- Comprehensive insurance: Comprehensive insurance pays for your vehicle’s damages caused by non-collision events, like weather, theft, vandalism, or animal damage. It’s also called “other-than-collision” coverage and is also part of full coverage, and thus usually required if you finance your vehicle.
- Medical payments coverage: Medical payments coverage is designed to pay for the cost of your and your passenger’s medical expenses in a covered car insurance claim, regardless of fault.
Frequently Asked Questions
Methodology
Reviews.com reviews products, services, and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction signals (Southwest results in the latest J.D. Power study), complaint trends from the NAIC Consumer Complaint Index, and online resources from each company to determine top providers.
As for average pricing, we reference current market estimates published by Bankrate and ValuePenguin and use the NAIC’s Auto Insurance Database Report for the latest official benchmark (2022 policy-year “average expenditure”). See car insurance in New Mexico at Bankrate, ValuePenguin’s New Mexico car insurance analysis, and the NAIC report for methodological details. For full coverage, we model typical limits and deductibles commonly used by these sources to enable apples-to-apples comparisons.
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile models a 40-year-old driver of a mid-size sedan, commuting five days a week and driving 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
