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Best Cheap Auto Insurance for Good Drivers in New Mexico

Enter your New Mexico zip code below to view companies that have cheap auto insurance rates.

Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: Nov 16, 2019

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Life would sure be easier if we could simply tell you the single best company that has the rock bottom lowest rates in New Mexico. Unfortunately, it’s not that simple as there are a ton of unknowns such as whether you are female or male, if you are wanting full coverage, the performance level of your vehicle, and your current insurance company. The information below will cover the different scenarios that increase car insurance cost and should give you a solid foundation to find cheaper car insurance.

Deciding which companies quote the best car insurance rates for good drivers calls for a little more effort in order to find the best policy. Every insurance provider uses different criteria for setting rates, so we’ll take a look at the car insurance companies with the overall best prices in New Mexico.

We do need to point out that New Mexico car insurance rates are based on many factors that will increase or decrease the price you pay for coverage. Simply getting older, buying a new vehicle, or getting a couple of tickets can trigger price changes resulting in some companies being more affordable than the competition.

Enter your zip code below to view companies that have cheap auto insurance rates.

What’s the cheapest car insurance in New Mexico?
Rank Company Cost Per Year
1 USAA $677
2 Allied $948
3 Safeco $984
4 Farm Bureau Mutual $1,214
5 State Farm $1,297
6 Central Mutual $1,314
7 Farmers $1,315
8 The Hartford $1,352
9 Travelers $1,537
10 Progressive $1,550
11 GEICO $1,592
12 California Casualty $1,623
13 MetLife $1,642
14 Encompass $1,643
15 Allstate $2,337
16 Liberty Mutual $2,554
17 Sentry $3,176
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USAA normally has some of the lowest car insurance rates in New Mexico at around $677 a year. Allied, Safeco, Farm Bureau Mutual, and State Farm also qualify as some of the more affordable New Mexico auto insurance companies.

As shown in the rates above, if you buy coverage from Farm Bureau Mutual and switched to Allied, you might see savings of in the neighborhood of $266. Customers with State Farm may save as much as $349 a year, and Central Mutual customers might lower prices by up to $366 a year.

Remember that these policy rates are averaged across all drivers and vehicles in New Mexico and and are not figured with a rate decrease for good drivers. So the car insurance company that has the cheapest price for you may not even be in the above rate chart. That underscores the importance of why you need to get rate quotes using your own personalized driver profile and vehicle information.

Enter your zip code below to view companies that have cheap auto insurance rates.

When shopping for cheaper car insurance for safe drivers, one of the many components that is used by car insurance companies to determine the cost of insurance is your zip code. More populated areas like Albuquerque, South Valley, and Los Alamos will most likely pay more, whereas areas with less people or fewer weather incidents benefit from having to pay less for coverage.

The table below illustrates the most expensive cities in New Mexico for good drivers to buy an auto insurance policy in.

How much is auto insurance in New Mexico?
Rank City Average Per Year
1 Albuquerque $1,375
2 Santa Fe $1,356
3 South Valley $1,349
4 Artesia $1,330
5 Los Alamos $1,308
6 Los Lunas $1,302
7 Rio Rancho $1,294
8 North Valley $1,290
9 Hobbs $1,284
10 Espanola $1,260
11 Gallup $1,212
12 Roswell $1,210
13 Clovis $1,180
14 Carlsbad $1,177
15 Lovington $1,171
16 Las Vegas $1,160
17 Portales $1,151
18 Farmington $1,148
19 Las Cruces $1,142
20 Deming $1,109
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Premium costs are estimated as the specific area where the vehicle is garaged can modify insurance rates substantially.

Responsible drivers pay cheaper car insurance rates

In a perfect world, the best way to enjoy cheap car insurance prices in New Mexico for safe drivers is to drive safe and avoid accidents and keep your driving record clean. The diagram below demonstrates how citations and at-fault fender-benders can impact insurance prices for different age groups of insureds. Data assumes a single male driver, full physical damage coverage, $500 deductibles, and no discounts are applied.

The data in the chart shows the average cost of car insurance in New Mexico per year with no accidents or violations is $1,521. Get two speeding tickets and the average cost increases to $2,007, an increase of $486 each year. Now add one accident along with the two speeding tickets and the yearly cost of car insurance for good drivers goes up to an average of $2,496. That’s an increase of $974, or $81 per month, just for being a careless driver!

State Farm, Progressive, Geico, or Allstate: Which is best?

When it comes to buying auto insurance for safe drivers in New Mexico, four companies to consider are State Farm, Progressive, Geico, and Allstate. All four offer physical damage and liability coverage, but each has unique options and discounts that shoppers can select from. The next table ranks some of the different options and features .

Largest Auto Insurance Company Ratings
State Farm Progressive Geico Allstate
Customer Satisfaction 4th 3rd 1st 2nd
Policy Cost 2nd 3rd 1st 4th
Policy Discounts 3rd 4th 2nd 1st
Claims Handling 2nd 4th 3rd 1st
Amount of market share 18.3% 8.8% 11.4% 10%
Emergency roadside service Yes Yes Yes Yes
New car replacement No No No Yes
Breakdown insurance No Yes Yes No
Accident forgiveness No Yes Yes Yes
Rate for vehicle usage Yes Yes No Yes
Rideshare coverage Yes Yes Yes Yes
Coverage in New Mexico Yes Yes Yes Yes
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How to find the best cheap auto insurance for good drivers in New Mexico

Lowering your rates is not difficult, and here are some of the recommended money-saving solutions that can help New Mexico drivers buy cheaper car insurance.

  • You will pay more if you get tickets or have at-fault accidents
  • At-fault accidents will increase rates
  • Improve your credit rating
  • Safe vehicles generally have lower rates
  • Increase deductibles to save money
  • Compare price quotes at least once a year

That last idea is certainly valuable, as we discussed in the prior article. Prices can change in a short period of time, so drivers shouldn’t hesitate to buy a different policy if a better deal can be had.

We understand brand loyalty, but it’s not a great idea if your bullheadedness ends up costing you money that could be spent on other things. Now is a great time to compare prices and find cheaper car insurance for good drivers.

Who has the cheapest insurance quotes for safe drivers?

There are many different ways to shop around for car insurance in New Mexico, but the most frequently used ways are from an independent agent, a captive (or exclusive) agency like Liberty Mutual or State Farm, or direct from companies such as Progressive or Geico.

You can use whichever you prefer, but buyers need to know the differences in how they price policies.

Independent agencies have contracts with many companies and can get policy pricing from every one. These agents have the ability to provide you with more rate quotes, which may give you the best chance of saving money. If they quote lower rates, they can switch companies in-house and that require little work on your part.

A captive or exclusive agent is restricted to a single company, two popular examples being State Farm and Allstate agents. Exclusive agents cannot provide multiple price quotes, so if their prices are high, they cannot shop around.

Buying car insurance direct means you bypass an agent and instead shop direct either online or via phone. This option may be the best choice consumers who have limited assets and have a good understanding of what coverage options they need.

What is the best way to buy the best cheap auto insurance for good drivers in New Mexico? It would be simple to say buying direct results in the best prices since there is no middleman, but that turns out to not be true. And we’d like to say an independent agent results in the cheapest rates since they have access to many companies, but again, that’s not accurate. For some people, exclusive agents may have prices that other companies cannot beat.

Because of the variability of car insurance rates, the best way to get the lowest rate is to get quotes and compare. Be sure to get price quotes from all three to have enough rates to compare. A great place to start is our list of online companies offering discounts: click here to view.

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