Car insurance rates are notoriously hard to predict. The price your friends and neighbors pay might be very different from your own quote due to factors such as your age, driving history and credit rating. Sometimes simply choosing a different insurer can dramatically swing prices one way or the other. That’s why shopping around from several companies is the best way to find low-cost car insurance in New Mexico.
To help you cut down on the legwork, NerdWallet tested rates from the six largest auto insurers in the state for a variety of driver types. Below you’ll find the three cheapest options for:
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Cheapest for good drivers
For drivers with no at-fault crashes, DUIs or moving violations; range of average prices from the six largest insurers: $793 to $1,993 per year.
Price
- $793/year
Price
- $1,282/year
Price
- $1,292/year
The average between the three cheapest companies was $1,122 per year. USAA’s sample rate was well below that amount, however, at just $793 per year. Note that the company’s policies are available only to active or retired military members and their families.
For those who don’t qualify for USAA, the second and third cheapest options were Geico and State Farm, respectively. Both of their average rates were well above USAA’s estimate. The good news is incident-free drivers can typically lower their rates with discounts for avoiding accidents and claims.
Cheapest for young drivers
For drivers in their early 20s; range of average prices from the six largest insurers: $322 to $1,016 per year.
Price
- $322/year
Price
- $557/year
Price
- $761/year
Drivers in their early 20s tend to face high rates if they purchase the same level of coverage as middle-aged motorists. But since younger drivers typically have fewer savings and assets to protect, it’s reasonable for them to reduce their coverage to get lower costs, which are reflected in our analysis.
For those with a military connection, it’s hard to pass on USAA. The company returned by far the best deal at $322 per year on average, or just $27 a month. For those who don’t qualify for USAA, Geico was the cheapest option at $557 annually, or about $46 a month.
Cheapest for drivers with one at-fault crash
Range of average prices from the six largest insurers: $1,079 to $3,192 per year.
Price
- $1,079/year
Price
- $1,394/year
Price
- $2,051/year
At-fault crashes usually trigger an increase in car insurance rates, either when you renew with your current company or shop around for a fresh policy. The cheapest quote we found for this group was $1,079 per year — nearly $300 higher than the lowest rate for drivers with no crashes.
If you’re fretting about increased rates due to crashes, consider prioritizing companies that offer accident forgiveness. Farmers, for instance, says it will forgive one at-fault crash for every three years of incident-free driving. With USAA, your rates won’t spike after causing a crash if you’ve had zero accidents in the last five years.
Cheapest for drivers with poor credit
For drivers placed in the “Poor Credit” tier using the Quadrant Information Services rate tool; range of average prices from the six largest insurers: $793 to $2,577 per year.
Price
- $793/year
Price
- $1,495/year
Price
- $1,800/year
Insurers correlate poor credit to an increased likelihood of accidents and claims, which explains why those with credit issues tend to face steeper rates than many other motorists.
However, there’s good news if you qualify for USAA — in our test, the company’s average rate for this group was no higher than their estimate for drivers with good credit. Alas, other companies weren’t that lenient. With Geico, for instance, a poor credit rating triggered a rate increase of $213 a year.
Cheapest for retired drivers
For drivers in their mid-to-late 60s who no longer use their car for commuting; range of average prices from the six largest insurers: $669 to $1,857 per year.
Price
- $669/year
Price
- $1,006/year
Price
- $1,199/year
Retirees can usually find pretty good deals on car insurance, given they generally spend less time behind the wheel than younger motorists.
We tested rates for retired drivers who travel half as many miles as other groups. USAA led the field in our results with an average price of $669 per year. That’s $124 less than the company’s quote for 30-year-old good drivers, which shows how much policyholders stand to save by giving up the daily grind. For drivers without a military background or family connection, State Farm was the cheapest option at $1,006 per year, on average.
Minimum car insurance requirements in New Mexico
New Mexico requires drivers to carry liability insurance, which covers others’ injury treatment and property damage if you’re at fault in a crash.
The minimum limits you must select are:
- $25,000 bodily injury liability per person.
- $50,000 bodily injury liability per crash.
- $10,000 property damage liability per crash.
Although only liability insurance is required to drive legally, it’s wise to add other common options for more well-rounded financial security.
For instance, liability coverage won’t pay to replace your car if it’s stolen; you’d need comprehensive coverage for that. Or if you’re hit by a driver who has no insurance, you’d need uninsured motorist coverage to avoid having to pay for your injury treatment out of pocket.
Read NerdWallet’s guide to minimum car insurance requirements by state for more advice on choosing your coverages and limits.
Alternative car insurance for high-risk drivers
If you’ve been denied car insurance on the open market — because of DUIs, at-fault crashes or other circumstances — you can apply for coverage through the New Mexico Motor Vehicle Insurance Plan.
For more shopping help, try NerdWallet’s comparison tool. You’ll be able to view car insurance quotes from leading insurers side-by-side and see how much you could be saving.
Alex Glenn is a staff writer at NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
This article was updated on June 2, 2016. It originally published in May 2014.
METHODOLOGY
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured motorist bodily injury coverage, and collision and comprehensive with a $1,000 deductible. We used a 2012 Toyota Camry in all cases.
Our sample young driver was age 22 and carried the minimum required coverage. Our sample retired driver was age 67 and drove 5,000 annual miles; all other groups drove 10,000 annual miles. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
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