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Car Insurance in New Mexico (Updated May 2024)

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New Mexico Car Insurance Quotes

Car insurance costs are up 22% from a year ago, with some states seeing even higher increases than others. Looking at New Mexico however, drivers are paying 19% less for car insurance than the national average, with Full Coverage costing New Mexico drivers an average of $153 per month

Similar to other states, the rates in New Mexico can vary widely by specific cities and zip codes as accident rates, car-related crime, and even weather can have significant influence over a driver's risk profile. Of course, a driver's profile also impacts the total cost of coverage, with age, driving history, and even credit score being some of the major factors evaluated by insurance providers. 

We partner with insurance experts to analyze millions of data points and get you the best car insurance in New Mexico. Read on to learn more about properly insuring your car in New Mexico. 

If you're ready for personalized recommendations, submit your ZIP code above and compare options instantly - absolutely free. 

New Mexico Car Insurance Laws

In New Mexico, ensuring your vehicle is insured isn't just about protecting yourself; it's a legal requirement for hitting the road. The "Land of Enchantment" requires all drivers to carry minimum liability auto insurance. 

New Mexico’s car insurance minimums are:

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

To streamline the process and keep drivers compliant, New Mexico employs the Validati® application. This tool powers the New Mexico Insurance Identification Database (IIDB), a modern solution to match insurance information with registered vehicles.

Proof of Insurance

“ Carry your proof of insuranceor face potential penalties, including registration suspension. ” 

If you receive a Notice of Noncompliance despite having insurance, contact your insurance provider right away to update your information on the IIDB. Failure to correct this within 30 days can result in your vehicle's registration being suspended. The New Mexico Motor Vehicle Division (MVD) makes it clear: Carry your proof of insurance or face potential penalties, including registration suspension.

Additional Coverage in New Mexico

In New Mexico, the diverse and sometimes harsh landscape — from dust storms in the desert to snow in the mountains —  means drivers may want to consider comprehensive auto insurance coverage beyond state-mandated minimums to cover natural disasters, theft, and vandalism. Additionally, considering the risk of accidents with uninsured drivers, adding uninsured/underinsured motorist coverage is a prudent choice.

Frequently Asked Questions

What is the quickest way to reduce my insurance premium in New Mexico?
The quickest and easiest way to reduce your insurance premium is to take advantage of discounts related to your account setup. Depending on the insurance provider, setting up Electronic Funds Transfer (EFT), signing up for Paperless billing, and paying your policy in-full can reduce your cost by 4% to 9% instantly.
What is the most common insurance discount in New Mexico?
The most common insurance discount is signing up for Paperless billing. We have seen discounts range from 3% up to 11% depending on the policy. It is important to note that not all carriers offer this discount and those that do might have rules of when it can be applied (usually around the start of your policy term).
How much will I save switching insurance providers in New Mexico?
How much you can save by switching carriers can vary widely by location, time of year, and your driving record. While some carriers offer a median discount of 6 - 7% for policy renewals, recent research suggests that you can save anywhere between 10 - 20% by switching to a new carrier. The best way to secure the highest savings on your policy is by shopping often and connecting with a licensed agent.

🔍 Auto Insurance Methodology - Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Rates are based a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We assume no unique benefits or discounts are applied for these rates. Your own rates may be different.