Like most states, car insurance is a requirement in New Mexico, but finding the best car insurance in the state may require research. New Mexico drivers have access to several great car insurance companies, so Reviews.com dug in to find the best ones. Our research may help you find 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, first, we reviewed 2021 average premium data from Bankrate.com. Next, we looked at each company’s coverages, discounts, digital assets, and third-party ratings. 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 research 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 |
Information accurate as of April 2022
*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.
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.
The Average Cost of Car Insurance in New Mexico
Based on 2021 data from Bankrate.com, the average cost of car insurance in New Mexico is $385 per year for a minimum coverage policy and $1,419 per year for a full coverage policy, which is cheaper than the average rates in the United States, which are $565 per year for minimum coverage and $1,674 per year for full coverage. One of the biggest factors that may impact car insurance quotes in New Mexico may be the state’s high number of uninsured drivers. As of 2019, nearly 22% of drivers in New Mexico did not carry car insurance, even though it’s legally required.
Top 3 Cheapest Car Insurance Companies in New Mexico
| Company | Average Annual Full Coverage Premium* |
| USAA | $1,102 |
| Farmers | $1,278 |
| Progressive | $1,310 |
* Data provided by Bankrate.com.
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 |
* Data provided by Bankrate.com.
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 |
* Data provided by Bankrate.com.
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 |
* Data provided by Bankrate.com.
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. As we mentioned above, the state has a high estimated percentage of uninsured drivers, which means that you may want to consider purchasing uninsured and underinsured motorist coverage, just in case.
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:
- $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 scores, and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s 2021 data of car insurance in New Mexico, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $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 drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
About the Authors
Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.
