Lauren Lewthwaite Last Updated On: July 19, 2023

Here’s What You Should Know About Finding Car Insurance in New Mexico

In case you didn’t know, New Mexico is also known as The Land of Enchantment. It might be because of the state’s incredible culture, cuisine, and scenery, or it could very well be because the state has great car insurance at affordable rates. 

We may never know if the above is true, but what we do know is that you can find cheap car insurance in New Mexico and get the coverage you need. Keep reading for all the information you need to get behind the wheel in the 47th state. 

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Table of Contents

Car Insurance Options in New Mexico

Insurance is never a one-size-fits-all product, and car insurance is no exception. Drivers in New Mexico can pick and choose their coverage to what suits their budget and needs. So, what are your options for car insurance? 

There are a few main buckets of coverage you will come across in insurance. These include:

  • Bodily Injury Liability: This helps cover medical costs for injuries from an accident you caused. It also covers legal fees if you’re sued.
  • Property Damage Liability: This helps cover any damage to property you cause in an accident. 
  • Collision: This helps to repair or replace your vehicle after damage in a collision with another vehicle or a stationary object like a pole. 
  • Comprehensive: This covers damage to your vehicle from weather, theft/vandalism, collisions with animals, and more. 
  • Uninsured/Underinsured Motorist: This protects you if you get into an accident with someone who doesn’t have insurance or not enough.
    • Note that New Mexico ranks as one of the top four states for uninsured drivers, with 21.8% of drivers being uninsured. Hit and runs happen, so this coverage can help protect you from any driver, insured or not. 
  • Medical Payments: This helps cover medical costs for you and your passengers after an accident, regardless of who caused it. Keep in mind that bodily injury liability only covers the other driver, not you or your passengers.

But that’s not all. You can also dress up your policy with optional add-ons, to get even more peace of mind. These riders can include:

  • Roadside Assistance: This pays to tow your vehicle to a nearby mechanic and possibly small roadside fixes.
  • Rental Car Reimbursement: If your vehicle is being repaired, this helps cover the cost of a rental car. 
  • Gap: If your vehicle is leased/financed and gets totaled, this helps cover the difference between what insurance compensates you for your vehicle and what you owe on the loan. 
  • Accident Forgiveness: This ensures your car insurance rates won’t go up after the first accident you cause. 

These are just some of the riders you can add, but there are even more options depending on your provider. By tailoring your policy to what you want and cutting out what you don’t, you can feel safest when hitting the road. 

New Mexico Car Insurance Requirements

Now that you know how many options are available to you for coverage, you’re probably wondering what you really need on your policy. The truth is that the only coverage the law requires you to have is bodily injury and property damage liability, in the following coverage amounts:

  • $25,000 for bodily injury to or death of one person,
  • $50,000 for bodily injury to or death of two or more persons, and
  • $10,000 for property damage in any one accident.

Of course, these are just the bare minimums you need to have in place to get behind the wheel. It’s strongly recommended that you have more coverage in place, to not only give you more peace of mind but to ensure you’re not on the hook for huge out-of-pocket costs should an accident happen. 

Keep in mind that ignoring the minimum car insurance requirements can cost you. If you get caught without the minimum amount of car insurance, the consequences include: 

  • Your vehicle registration could be suspended until proof of insurance is provided
  • Your license could be suspended
  • You could be fined $300-$1000
  • In some cases, you could even face jail time

We know that cost plays a factor into coverage choices, so next we’ll explore the average cost of car insurance in New Mexico to better give you an idea.

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How Much Is Car Insurance in New Mexico?

While it would be nice to have as much coverage as possible, we know that’s not a reality for all drivers. Understanding the average cost of car insurance policies in New Mexico can help you figure out what you can and can’t afford to include in your coverage. 

Here are some quick numbers to help guide you:

  • $1,591 per year for full coverage
  • $346 per year for minimum coverage
  • These are lower than the national averages of $2,014 for full coverage and $622 for minimum coverage

The good news is that living in New Mexico means you can save on car insurance compared to other states. And if you live outside of major cities, you could save even more. If you want to see how much you can expect to pay for car insurance based on your unique variables, like age, car make and model, driving history and more, click here for access to free quotes. 

And because we like to keep the good news coming, we have plenty of tips and tricks to help you save even more on your car insurance costs. Keep reading.

How to Find Cheap Auto Insurance in New Mexico

Car insurance can be a major expense for many. But with a little research, you can find savings that slash your car insurance costs. Whether you use those savings to get even more coverage or spend it on exploring the Land of Enchantment on your four wheels is up to you! Here are some key ways to save on car insurance costs:
  • Compare Coverage: This is one of the most overlooked ways to cut car insurance costs. By shopping around, and comparing rates and coverage, you can save as much as 20-30% on your premiums. Each insurance provider uses different factors and algorithms to determine your rate, so you can easily get three entirely different quotes from three different providers (more info on how your rate is calculated here).
    • This applies to every time your policy renews, too. Never let your policy auto-renew without checking that you’re still getting the best deal.
  • Ask for Discounts: Nothing ventured, nothing gained! Almost every insurance provider offers discounts on car insurance at this point. They’re even often listed directly on their website. By stacking up any discounts you’re eligible for (and asking for any that you think you deserve), you can save big on car insurance. Common discounts include:
    • Claims free
    • Loyalty
    • New client
    • Bundled policies
    • Safe driver
    • Safety features
    • Association/employee discount
    • And more
  • Review Your Coverage: Sometimes, more coverage doesn’t make sense. If you have an older vehicle, it might make sense to scrap collision or comprehensive. If you have a teenager on your policy and they head off to school, you could save by taking them off your policy. And if your credit card rewards cover rental cars, you might not need the rental car reimbursement rider. Review your coverage annually to make sure you’re not paying for anything you don’t need.
  • Increase Your Deductible: Tread carefully with this one, but increasing your deductible (the amount you’d have to pay before your claim is covered) can lower your monthly/annual premiums. You want to be sure the deductible is still an amount you can afford to pay should anything happen, but this is a great option for those with clean driving histories.
  • Maintain a Clean Slate: Speaking of driving histories, doing your best to keep your record clear of any violations/penalties will help you save on premiums. You can’t do anything about past infractions, but they will eventually drop off your record (more details here) and your premiums will lower, as long as you don’t incur any new ones.
  • Monitor Your Credit Score: Some states restrict the use of credit scores when it comes to calculating premiums, but unfortunately, New Mexico isn’t one of them. By monitoring your credit score, correcting errors, and doing your best to improve your credit score, you can see your premiums drop over time.
Some of these tips are easier than others, but the point is that the ball is in your court when it comes to saving on car insurance. A little homework and due diligence can save you instantly, and by maintaining good driving and financial habits in the future, you’ll secure yourself low-cost car insurance for the foreseeable future too. 

What Does Diminished Value Mean?

As a New Mexico driver, it’s important to note that the state follows diminished value rules. This means that if your vehicle is damaged in an accident and you’re not at fault, you can claim diminished value from the at-fault driver’s insurance. 

This is because even if your vehicle is fully repaired/restored, the resale value still drops because it was involved in an accident. Diminished value helps you recover the loss you would see if you tried to sell your car. 

There are only 15 diminished value states, and New Mexico is one of them. This is great news for New Mexican drivers, because it means you’re not left hanging after an accident that you didn’t cause. 

How to Get Car Insurance Quotes in New Mexico

Now that you’re armed with all of the knowledge you need to find the cheapest auto insurance in New Mexico without skimping on coverage, it’s time to get quotes. Start by contacting your insurance agent or clicking here for access to free quotes fast. 

Once you have the quotes you need to compare coverage and find the best deal, you can often get coverage started that same day and hit the open road (or at least the I-40) with confidence.

We’ve got you covered. 

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