Best Auto Insurance for New Mexico

The best auto insurance companies in New Mexico are State Farm, Progressive, and GEICO. Comparing as many companies as possible is the best way to make sure you are getting the best value for your insurance dollar.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Written by D. Gilson, PhD
Professor & Published Author D. Gilson, PhD

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 1, 2022

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New Mexico auto insurance rates fall a little below average when compared to the rest of the country, with an average cost of insurance being $1,201 a year for a ranking at number 33. Big-name companies rule the market in the state, and our list of the best companies for car insurance in New Mexico makes it clear there is a reason why.

The Basics of Auto Insurance and Liability Coverage Limits in New Mexico

New Mexico’s state insurance laws require all drivers on the road to carry a minimum coverage amount of car insurance in order to ensure financial responsibility in the event of an accident.

New Mexico auto Insurance Coverage Policy Laws

The state’s legal minimum coverages are $25,000 per person $50,000 per incident for bodily injury liability, and $10,000 for property damage liability.

That places New Mexico about average for bodily injury liability limits, but on the low side for property damage coverage. Carrying higher limits for both parts of the required coverage is highly recommended, as a serious car accident can cost well above these limits.

Ultimately, New Mexico requires drivers to maintain minimum liability insurance at or above the below levels:

  • Bodily Injury $25,000 per person
  • Bodily Injury $50,000 per accident
  • Property Damage $10,000 per accident

As an alternative to car insurance, New Mexico drivers can provide a cash deposit or bond with the state in the amount of $60,000.

The state does not have any other minimum state requirements for car insurance in order to be on the road legally. If you have financed your vehicle or have a lease agreement, however, you will need to meet any liability coverage requirements set out in that agreement. Most lenders require comprehensive coverage and collision coverage on the vehicle as part of the auto policies; other requirements may apply. Check with your lender or leaseholder before you buy insurance to make sure you are buying what’s needed.

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Specifics of New Mexico Auto Insurance

New Mexico operates on a tort system, which means that the person found to be at fault in a car accident can be considered as the fault driver and would be responsible for damages. The driver’s auto insurance policy will pay out for injuries, death, and property damage as well as court costs up to the limits of the coverage chosen by the driver.

After the limits of the coverage policy are met, any excess amount owed will be the responsibility of the at-fault party. That means that if you carry the legal minimum and are involved in a serious accident, you could find yourself facing a court judgment that requires you to pay thousands out of pocket; this can include medical bills and more. Carrying higher limits is the best way to protect yourself.

Average car insurance cost in New Mexico

In the state of New Mexico, the coverage average cost of car insurance annually is $1,419 for full coverage and $385 for minimum coverage. Just to note, this average is based on a 40-year-old driver with a clean driving record and good credit. Drivers in New Mexico pay nearly $300 less per year than the national annual average of $1,674 for full coverage, which is not very surprising given New Mexico’s more mild climate.

Our Process

First and foremost on our list of criteria for the best car insurance in New Mexico is the requirement for a good reputation. A car insurance company is only as good as the service they provide, and no matter how inexpensive the policy, it is not worth it if the company does not have your back when a claim happens. We looked at ratings from trusted consumer reporting sources and also reviewed our own research into customer reviews and complaints about each company.

While inexpensive is not the top requirement to make the list – for the reasons above – we did look for companies that offer the most competitive rates for New Mexico drivers. All of the companies on our list represent a good value in car insurance, which means they offer a combination of excellent service and a fair price for the coverage they provide. We looked for companies that offer a comprehensive policy to allow New Mexico drivers to save on the coverage they need, not only on the legal minimum.

Our final criterion is that each company on our list offer coverage to the general public, and not only to a certain subset of the population. That means that while there are some great companies, like USAA, with eligibility requirements, we left them off in order to make the list useful to the largest portion of the population. All of the companies we chose cover drivers across the entire state as well, regardless of location.

Our Top Picks

These three companies offer the best combination of service and price to New Mexico drivers across the state.

State Farm

The biggest car insurance company in the nation is also a top pick for New Mexico drivers. They are well known for great customer service, and J.D. Power’s regional rating of the company in the top five confirms that is true for New Mexico. They also provide the personal attention of an agent.

All of that also comes with some of the most affordable rates in the state. State Farm consistently provides competitive quotes to drivers of all types, regardless of record. Rates can come down even more thanks to State Farm’s great bundling discount if you also add your home insurance.


Progressive climbed to the number three spot nationwide for car insurance on their promise of low rates, and they keep that promise for New Mexico drivers as well. They consistently have some of the lowest rates across the board.

Progressive also ranks well for customer service on the regional survey and has been working to build that reputation over the past several years. They are a great pick for anyone who wants the convenience of online services along with customer service that is there when you need it.


Rounding out the top three in New Mexico is the car insurance company that holds the number two spot in market share nationwide. GEICO earned that spot with a combination of price and service that is hard to match anywhere else.

GEICO is consistently one of the lowest-priced options for New Mexico drivers, even with a less than perfect driving record. They also have a great reputation for customer service and make it easy to handle insurance needs on the go with mobile and online services. They are a great pick if budget is your main concern.

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Shopping for Car Insurance in New Mexico

It is not hard to tell that the big-name companies hold sway in New Mexico; the top three companies in the country are also our top picks for the state. That does not mean you shouldn’t shop around, including some of the smaller car insurers out there, to find out if there is a better option for you. Comparing as many companies as possible is the best way to make sure you are getting the best value for your insurance dollar.

Before you start, however, you should know what kind of coverage you want. We highly recommend choosing liability limits above the legal minimum; many drivers are surprised to learn it does not cost much more to be better protected.

Most insurance companies have standard coverage limits and deductibles at which they present their quotes; if you do not specify what you want you will likely wind up with a list of quotes that aren’t really comparable because they don’t include the same coverage. Choosing your coverage ahead of time and obtaining quotes with that same coverage every time is the best way to get fair quote comparisons.

The Bottom Line

For New Mexico drivers, the big three are all great picks. They offer great value along with name recognition and financial stability. Check all of your options, however, before you make a decision. Each driver and situation is different, and sometimes the right company for you can be a surprising outlier.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

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