New Mexico has some of the cheapest car insurance rates in the United States, with an average annual premium of only $501. The primary reason New Mexico drivers can still find affordable car insurance is that it is one of seven states that does not require its residents to carry liability insurance on their vehicles. However, if someone does get into an accident, their lack of insurance will become problematic.
New Mexico drivers are required to carry uninsured/underinsured motorist coverage, but otherwise are free to select the level of their personal liability insurance policy. This type of reform has helped keep premiums low in New Mexico without sacrificing necessary levels of protection or access to legal recourse for victims involved in collisions.
Auto Insurance Determining Factors
The base rate for car insurance in New Mexico ranges from $559 to $621, depending on the insurer, the type of person being insured (i.e., age, gender), and the number of years with a clean driving record; this does not include discounts, which may apply to good students or seniors. Several factors contribute to the different rates quoted by companies.
For example, drivers with DUIs will be charged more for insurance than those who have not had a DUI or other infractions during the past three years. Drivers under 25 are also required to pay more for car insurance than older motorists despite having very little driving experience.
Cheapest Car Insurance in New Mexico
The state also has an anti-fraud division that investigates claims of insurance fraud, which helps reduce the cost of coverage. Unlike some other states, New Mexico doesn’t limit or cap personal injury protection (PIP) benefits. This means there are no “at-fault” accidents in which PIP is unavailable to victims; this factor also helps keep rates low in New Mexico.
Best Car Insurance Companies
Several insurance companies in New Mexico have received high ratings from their customers over time, including State Farm, Progressive, Farmers, Safeco and Nationwide. All five of these insurers carry a financial strength rating of “A-” or higher from A.M. Best, which is among the top two insurance credit rating agencies.
Compare New Mexico Quotes Online
New Mexico drivers can obtain car insurance quotes online by entering their zip code at the top of this page in order to compare rates from all available insurers operating in their area.
Average Cost of Car Insurance
The average cost of car insurance in New Mexico varies by insurer, but drivers can generally expect to pay anywhere from $500 to $700 per 12-month policy.
Drivers With a DUI in New Mexico
A driver with one DUI will likely be charged 50% more for car insurance than someone who hasn’t had any violations during the past three years. A driver with two DUIs will be charged 150% more for insurance, while someone with three or more moving violations during the past 36 months will pay 250% more.
Drivers With Tickets in New Mexico
New Mexico drivers who have received one ticket within the past three years will usually see their premiums rise by 25%. Two or more moving violations in the past 36 months will increase premiums by 50%, and three or more tickets in that period may lead to a 250% rate hike.
Drivers With Bad Credit in New Mexico
Auto insurance companies often charge drivers with bad credit, such as those who have declared bankruptcy or had their car repossessed, higher rates than motorists with good credit. However, several car insurance companies in New Mexico will offer lower premiums to drivers who have experienced financial hardship due to their circumstances.
Seniors in New Mexico
A senior citizen driver in the state of New Mexico may qualify for a discount ranging from 5% to 15%, depending on the insurer and specific plan.
Student Drivers in New Mexico
The typical student discount is 25%, but the rate will vary depending on age, driving record and insurer; some insurers offer discounts of up to 100% for students with good grades. A good way to find out about discounts is by requesting car insurance quotes online.
Military Drivers in New Mexico
New Mexico military personnel are eligible for a 5% discount on their coverage, while veterans may receive up to 10% off.
Car Insurance in New Mexico
Any driver who wishes to purchase car insurance should be able to find several options online by comparing quotes from different companies at the top of this page. Customers can also visit agents within 24 hours if they prefer to speak with someone face-to-face.
Conclusion
The information we’ve provided in this guide should help you find the cheapest car insurance possible. If your current company isn’t giving you a good deal, consider switching to one of our top picks for the best car insurance companies or any other provider that will give you the coverage and price points that work for you. We hope this article has been helpful! Good luck with finding cheap full coverage in New Mexico.
