How to Find the Most Affordable Car Insurance in New Mexico

Fran
Lucy Lazarony
July 20, 2020

The average auto insurance premium in New Mexico is $1,331 per year, which is almost 7 percent less than the national average. We bet folks in New Mexico would like to see their auto premiums at an even lower rate. Lucky for them there are tips and strategies for saving money on car insurance. We’ll discuss those a bit later on but first we'll take a closer look at car insurance in New Mexico.

State Minimum Liability

Liability coverage helps pay for the other person’s expenses if you are at fault in an accident. Each state sets minimum liability requirements for the drivers in their state.

In New Mexico, the minimum liability requirement is $25,000 bodily injury per person, $50,000 bodily injury per accident and $10,000 property damage per accident. The average minimum liability coverage would cost $609 each year.

A More Comprehensive Policy Costs More

In New Mexico, an auto insurance policy with comprehensive coverage, collision coverage and $1,000 deductibles would cost an average of $1,188 per year.

Collision auto insurance is coverage that helps to repair or replace your car if it is damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events that aren’t covered by collision coverage. These events include vandalism, fire, theft and damages from weather such as a windstorm, a hailstorm, a tornado and a hurricane.

If there is a loan on your car, your lender may require you carry both collision coverage and comprehensive coverage. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Both collision insurance and comprehensive insurance require deductibles. Choosing a high deductible is one way to save money on your car insurance premium.

Check out rates in New Mexico

New Mexico Is an At-fault State

When it comes to car insurance, New Mexico is an at-fault state. This means New Mexico drivers are responsible for any damage they cause to another vehicle. They are also required to carry personal injury protection insurance. An insurance adjuster determines who is at fault in an accident.

Cheapest and Most Expensive Cities

In New Mexico, the city with the cheapest car insurance is Alamogordo. The city with the most expensive car insurance is Albuquerque.

How to Save Money on Car Insurance

Ready for some tips and strategies for saving money on car insurance? Here they come.

Be a married motorist. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married motorists pay less for car insurance than singles. In New Mexico, married motorists save on average about $108 each year on car insurance.

Have good credit. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. Because of this, drivers with good or excellent credit pay much less for car insurance than drivers with no or bad credit. In New Mexico, a driver with excellent credit saves an average of $1,047 each year on car insurance compared to a driver with bad credit. Need to boost your credit score? Get current on all past due accounts, pay down debt and avoid taking on new debt. Also get in the habit of paying your credit bills on-time. This will help you build up a positive payment history, which is good for your credit score.

Be a safe driver. If you are a safe and responsible driver and follow the rules of the road you will save money on your car insurance. In New Mexico, drivers without a recent moving violation save 15 percent on their car insurance premiums. But break a few rules of the road and premiums head up. In New Mexico, car insurance premiums increase 34 percent after a DUI, 33 percent after an at-fault accident and 15 percent after a speeding ticket. What does that mean in dollars and cents? In New Mexico, your first, minor at-fault accident costs on average around $641 per year. A DUI would increase a yearly auto premium by around $686. If you have been a safe and responsible driver, be sure to ask your auto insurance company for a good driver discount. You’ve earned it with your driving behavior out on the road.

Scoop up a multi-car discount. Got more than one car to insure? Insure them with the same company. You’ll save money on your premiums.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay once or twice a year.

Try a bundle. Bundle your auto insurance policy with another insurance policy such a homeowners insurance policy and save money.

Spend less on older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision coverage and comprehensive coverage any longer.

Check memberships. Members of some professional organizations and affiliates get discounts on car insurance. Check to see if the memberships in your wallet will earn you a discount.

Check anti-theft features. Certain anti-theft and safety features will lower your car insurance. Check to see if the features on your car warrant a discount.

Choose a high deductible. Choosing a high deductible will help to lower your auto insurance premium, especially on a newer car. Just be sure to put the deductible amount in a small emergency fund. This way the money will be there should you need to file an insurance claim.

Be a female driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Look for discounts. The good driver discount was already mentioned. But there are discounts for students and veterans as well. Be sure to reach out to your auto insurance company if you qualify for a discount.

Stick with your coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save.

Keep mileage low. If you are a heavy commuter and rack up the miles you are going to pay more for your car insurance. If you are a low-mileage driver, you will pay less for your car insurance. So drive less and pay less for car insurance.

Check your age. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for insurance. Drivers of the ages in-between pay less.

Look for a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft, you will pay more for your car insurance. If you live in a neighborhood with low accident claims and low crime, you will pay less for your car insurance. So choose a safe neighborhood and save money.

Own your home. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your own home and enjoy the savings on your auto insurance premium.

Shop around. One of the best ways to save money on car insurance is to shop around. You’ll want to get car insurance quotes from several different insurance companies. SmartFinancial makes it easy to do. Just input the type of insurance you are looking for and a zip code to get started. Next, answer a few, quick questions and you’ll be comparing auto insurance rates in New Mexico before you know it.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price you are looking for. So shop smart for insurance and drive safely on the roadways of New Mexico.

Get a Free Auto Insurance Quote Online Now.

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