Average Car Insurance Cost in New Mexico (2025)
Drivers in New Mexico pay an average of $112 per month for car insurance.
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Written byJanet Berry-Johnson
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8+ years writing about insurance, taxes, and personal finance
Certified public accountant
Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
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Edited byKatie Powers
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Licensed auto and home insurance agent
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NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Table of contents
Car insurance in New Mexico costs an average of $155 per month for full coverage and $69 per month for liability coverage. This makes it more affordable than the national averages of $196 for full coverage and $105 for liability-only coverage.
New Mexico’s lower costs may be due to a lower population density throughout much of the state.[1] That said, rates have been increasing. As of February 2025, average full-coverage insurance rates had increased by nearly 30% over the past two years — from an annual average of $1,438 in March 2023 to $1,859 in February 2025.
Here’s what you should know about finding car insurance in New Mexico.
Quick Facts
Residents of big cities like Albuquerque typically pay more for car insurance than drivers in rural areas due to a higher risk of theft and more traffic.
Maintaining a clean driving record is one of the best ways to qualify for lower car insurance rates.
The average annual rate for car insurance in New Mexico is $832 for minimum coverage and $1,860 for full coverage.
How much is car insurance in New Mexico?
In New Mexico, car insurance costs an average of $196 per month ($2,350 per year) for full coverage and $105 per month ($1,257 per year) for liability-only coverage.
Full coverage will pay for injuries or damages you cause to other people and their property, as well as comprehensive coverage and collision coverage, which pays for damage to your vehicle.
A liability-only policy covers bodily injury and property damage to others but not to your vehicle.[2] It might meet the state’s minimum-coverage requirements but offers little additional financial protection.
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How New Mexico car insurance rates have changed over the past two years
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To find car insurance rates in New Mexico and the U.S. over the last two years, download our data here.
The average price for full-coverage car insurance in New Mexico rose to $1,900 in 2024, up significantly over rates from just a few years ago. Full-coverage rates also rose nationally, though they remain more expensive than in New Mexico.
See how New Mexico car insurance prices have changed over the past two years below.
Average New Mexico Car Insurance Rates over the Past Two Years
Rates in this chart are two-year rolling medians in order to manage extreme market volatility seen over the past few years. Rates on the rest of the page reflect one-year rolling medians in order to prioritize the freshest data available.
Average New Mexico car insurance rates by city
Car insurance rates in New Mexico vary by city due to factors like population density, crime rates, car accident frequency, and weather conditions. For example, drivers in a bigger city like Albuquerque typically pay higher premiums because of more traffic congestion and a greater likelihood of accidents and theft.
On the other hand, drivers in a smaller city like Farmington usually pay lower rates due to less traffic and fewer claims.
Insurance companies also consider local repair costs, which can increase average prices in some areas.
The below rates are estimated rates current as of: Tuesday, April 22 at 12:00 PM PDT.
City  | Average Monthly Liability-Only Quote | Average Monthly Full-Coverage Quote |
|---|---|---|
| Farmington | $54 | $121 |
| Clovis | $56 | $142 |
| Carlsbad | $59 | $172 |
| Roswell | $62 | $150 |
| Las Cruces | $67 | $144 |
| Hobbs | $68 | $175 |
| Santa Fe | $69 | $154 |
| Rio Rancho | $77 | $165 |
| Albuquerque | $84 | $182 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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New Mexico Car Insurance Laws and Requirements (2025)
Average New Mexico car insurance rates by age and gender
Age and gender can also affect car insurance rates in New Mexico. Younger drivers — especially teens — tend to pay the highest premiums because they have less experience behind the wheel and are more likely to get in accidents.
Rates typically decrease as drivers enter their mid-20s and gain more experience. Senior drivers see their rates rise due to age-related declines in reaction time.
While gender plays a lesser role, young male drivers usually pay more for car insurance than young female drivers because they statistically have a higher rate of severe accidents. But by middle age, gender differences in pricing tend to level out.[3]
Age | Average Monthly Liability-Only Quote | Average Monthly Full-Coverage Quote |
|---|---|---|
| 16 | $160 | $377 |
| 18 | $139 | $328 |
| 20 | $97 | $229 |
| 25 | $85 | $199 |
| 30 | $72 | $169 |
| 40 | $65 | $153 |
| 50 | $57 | $136 |
| 60 | $50 | $119 |
| 70+ | $54 | $127 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Age | Average Monthly Liability-Only Quote | Average Monthly Full-Coverage Quote |
|---|---|---|
| 16 | $158 | $373 |
| 18 | $138 | $325 |
| 20 | $96 | $227 |
| 25 | $84 | $197 |
| 30 | $71 | $167 |
| 40 | $64 | $151 |
| 50 | $56 | $135 |
| 60 | $50 | $118 |
| 70+ | $53 | $126 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Average cost to insure popular vehicles in New Mexico
The most popular vehicles in New Mexico are the Ford F-Series, Chevy Silverado, GMC Sierra, Ram 1500, and Toyota RAV4, according to Edmunds. These picks reflect the state’s rural landscape, outdoor lifestyle, and need for versatile vehicles.
Pickups dominate the market because many residents use them for work and off-road driving, making them practical for city and rural areas.
Insurance costs for these vehicles vary based on repair costs, theft rates, and safety features. Trucks sometimes cost more due to higher repair and replacement costs.
Below, you can see the average monthly full-coverage insurance costs for the most popular vehicles in New Mexico.
Vehicle | Average Monthly Quote |
|---|---|
| Ford F-Series | $158 |
| Chevrolet Silverado | $168 |
| GMC Sierra | $170 |
| Ram 1500 | $188 |
| Toyota RAV4 | $155 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
How your driving record affects car insurance rates in New Mexico
Your driving record is one of the most significant factors affecting your car insurance rates in New Mexico. Insurance companies look at your driving history to determine your level of risk.
For example, drivers with clean records typically pay the lowest rates, while people with car accidents, speeding tickets, or driving under the influence (DUI) charges on their records pay more.
Below is a table showing full-coverage rates for a sample driver profile with an incident on their record. If you have violations on your driving record, you can lower your premiums over time by practicing safe driving habits and taking a defensive driving course.
Driver Record | Average Monthly Quote | % Increase Compared to Good Drivers |
|---|---|---|
| With accident | $248 | 52% |
| With speeding ticket | $242 | 48% |
| With DUI | $281 | 72% |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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In New Mexico, car insurance companies can consider credit history when setting car insurance premiums. Studies show drivers with good credit tend to file fewer claims, which leads insurance companies to offer them lower rates. On the other hand, people with poor credit usually pay more for car insurance because insurers consider them more likely to miss payments or file claims.
The table below shows rates for a sample New Mexico driver profile based on credit tier.
Credit TierAverage Monthly Liability-Only QuoteAverage Monthly Full-Coverage QuoteExcellent $64 $152 Good $66 $155 Fair $65 $155 Poor $80 $189 Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
How to lower your insurance costs in New Mexico
Car insurance premiums can add up, but you can reduce your costs while getting the coverage you need in several ways. Here are a few ideas to help lower your premiums:
Shop around for quotes
Rates vary from company to company, so comparing quotes from multiple companies can help you find a cheap company with the right coverage for you.
Bundle policies
Many insurance companies offer discounts when you bundle your car insurance with homeowners or renters insurance.
Maintain a clean driving record
Avoiding accidents and traffic violations can keep your rates low and qualify you for safe driving discounts.
Improve your credit
Since New Mexico allows credit-based insurance pricing, having better credit can help lower monthly premiums. Pay your bills on time and reduce your overall debt to improve your credit.
Choose a higher deductible
Your deductible is the amount you’ll pay out of pocket before insurance kicks in after you file a claim. Increasing your deductible can lower your premiums. Just make sure you can afford the higher deductible if you need to file a claim.
Take advantage of discounts
Many insurance companies offer car insurance discounts for things like maintaining good grades (for students), taking a defensive driving course, bundling policies, or installing anti-theft devices.
Drive a safe, affordable vehicle
Vehicles with high safety ratings and lower repair costs typically come with cheaper insurance rates.
New Mexico average car insurance cost FAQs
Finding cheap car insurance can be confusing. The following information can help answer your remaining questions about New Mexico car insurance and help you understand your options.
The average rate for full-coverage car insurance in New Mexico is $1,860 per year, while the average rate for liability-only coverage is $832 per year. These rates are lower than the national average of $2,350 for full coverage and $1,257 for liability-only coverage.
State Farm, USAA, and GEICO are some of the cheapest car insurance companies in New Mexico. But the cheapest company for you will depend on your ZIP code, driving history, age, and other factors.
New Mexico drivers pay an average rate of $155 per month for full coverage and $69 per month for liability-only coverage. But your rates may be higher or lower than the state average based on factors like your city, age, and credit history.
The best car insurance companies in New Mexico offer a balance of affordability, customer service, reliable claims service, and coverage options. State Farm, Liberty Mutual, Farmers, and Travelers are good options.
New Mexico law requires all drivers to carry the state minimum car insurance limits of $25,000 per person and $50,000 per accident in bodily injury liability and $10,000 in property damage liability.[4]
These limits meet the state’s minimum-coverage requirements, but you may need higher limits and additional coverage — like collision, comprehensive, and uninsured motorist coverage — to avoid out-of-pocket costs in the event of an accident.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- United States Census Bureau. "QuickFacts New Mexico."
- Insurance Information Institute. "What is covered by a basic auto insurance policy?."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
- New Mexico Motor Vehicle Division. "Insurance."
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Janet Berry-Johnson
Janet Berry-Johnson, CPA is a freelance writer with a background in accounting and income tax planning and preparation. She's passionate about making complicated financial topics accessible to readers. She lives in Omaha, Nebraska with her husband and son and their rescue dog, Dexter. Visit her website at www.jberryjohnson.com.
Janet has been a contributor at Insurify since October 2022.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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