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Car Insurance in New Mexico

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New Mexico is stunningly beautiful and the perfect picture of southwestern America. However, getting the most out of this breathtaking beauty means finding the best car insurance in New Mexico.

That is because the state is filled to the brim with sights to see and historic locations to visit. Families each year try their luck exploring the Carlsbad Caverns and the White Sands National Monument. And we can’t leave out those true believers that make an annual trek to the International UFO Museum and Research Center in Roswell.

But getting to all these places means quite a bit of driving. If you’re going to be hitting the road this hard, you need the protection of good car insurance coverage. Here is everything you need to know about car insurance in New Mexico.

Quick Facts

  • The state typically has 40,000 car accidents each year.
  • The average cost of car insurance in the state is $1,331 per year.

How Much Is Car Insurance in New Mexico?

If you are new to the state, or haven’t moved yet, then you probably have a pretty big question: Exactly how much is car insurance in New Mexico?

There are different ways to answer that question. For example, the exact types of auto insurance coverage a driver has plays a major role in how much they pay each month. Still, we can look at the numbers across the state and determine what the average cost is.

In this case, the average cost of car insurance in the state is $1,331 per year, which is a bit cheaper than the national average of $1,600. Remember, if you think you are paying too much for your own car insurance, your best bet is to shop around for different car insurance quotes and discover how much you can save.

What Is the Average Premium in New Mexico for Full Coverage Car Insurance?

It is up to every driver to determine how much car insurance they need. If you want the absolute highest level of protection for your car, then you need to get a combination of liability coverage, collision coverage, and comprehensive coverage.

This combination is known as full coverage. Liability protects against accidents you cause, collision protects your vehicle (regardless of who is at fault), and comprehensive protects your car against non-driving threats such as theft and vandalism.

Of course, full coverage insurance is the most expensive option as well. In New Mexico, the average cost of car insurance is $2,039 per year.

How Much Is It for Just the Minimum Required Car Insurance in New Mexico?

As you can tell, full coverage insurance is the highest level of protection you can get for your car. Of course, it also commands the highest price. On the other end of the spectrum is minimum coverage.

Every state has its own minimum level of car insurance coverage that drivers must have. Getting minimum car insurance is a great way to save money on your premium each month. However, you may be at a real disadvantage if there is an accident and you only have minimal insurance protection.

How much, then, can you expect to pay for minimum car insurance? In New Mexico, the average cost of this insurance is $570 per year.

How Do Rates Compare Across Major Cities in New Mexico?

Ever stop to wonder how the insurance company determined the cost of your premium? The truth is that there are many different facts about your life and driving history that can affect how much you pay.

And one of the biggest factors is your zip code. If you move from one New Mexico city to another, it can play a big difference in the cost of your premium. Below, we have a breakdown of average car insurance costs in different New Mexico cities.

New Mexico Cities Monthly Average Rate
Albuquerque $135.04
Hobbs $112.92
Las Cruces $102.27
Rio Rancho $141.88
Santa Fe $107.15

Is There a Good Driver Discount in New Mexico?

One thing that every driver in New Mexico has in common is that everyone thinks they are paying too much for car insurance. But did you know you may be able to reduce the cost of your premium with a single phone call?

That is because every insurance carrier offers special discounts, and you may already qualify for some of them. This includes discounts for things like completing defensive driving courses, getting good grades, and simply bundling insurance policies.

And one of the most common discounts is a good driver discount. Insurance carriers throughout New Mexico offer such discounts. If you have a relatively clean driving record, be sure to ask your carrier about potential discounts.

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New Mexico Car Insurance Laws

If you have lived in different states, one of the things you may have noticed is that each state has its own car insurance laws. It’s important to understand what the New Mexico car insurance laws are so that you can remain compliant and not end up paying any fees and jeopardizing your license.

New Mexico has very specific laws regarding how much insurance you must have, what penalties you face for driving without insurance, whether you are required to report accidents, and even which factors car insurance companies can use to determine your premium.

Keep reading to discover everything you need to know about New Mexico car insurance laws.

What Are the Mandatory Car Insurance Requirements in New Mexico?

There are many types of insurance you can purchase. However, there is a big difference between full coverage insurance and the minimum insurance requirements of the state. That brings us to another big question: What are the minimum car insurance requirements in New Mexico?

The state only requires drivers to get liability insurance. You must have at least the following minimum coverage amounts:

  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $10,000 per accident for property

Keep in mind that liability insurance only pays out when you are at fault in an accident, and it only pays to cover the personal and property damage you cause to others. While sticking to minimum insurance may keep your premium low, you may be stuck with a lot of debt in the event of an accident.

What Factors Does New Mexico Law Allow in Determining Your Premiums?

Previously, we touched on the fact that your zip code partially determines how much you pay for your car insurance. But what are the other factors your insurance carrier is allowed to consider?

In New Mexico, your carrier may look at any and all of the following factors:

  • Age
  • Credit history
  • Driving history
  • Insurance history
  • Zip code
  • Marital status
  • Employment status
  • Driving history

If you make any changes to these factors (such as improving your credit history), you should alert your insurance carrier. It may result in a lower premium at the end of the month.

What Is the Penalty for Driving Without Insurance in New Mexico?

It’s important to have the minimum required car insurance in New Mexico. In fact, we would argue it’s important to protect yourself by getting more than liability insurance. But what happens if you are caught driving with no insurance whatsoever?

Upon the first offense, you will receive a fine of up to $300 and may be placed in jail for up to 90 days. Upon the second offense, the maximum fine jumps to $1,000 and the maximum jail time jumps to six months. Upon the third offense and beyond, the court may assign you even harsher punishments at their discretion.

While the fines may be very costly, keep in mind the biggest cost will come from any personal or property damage you cause while driving without insurance. Without the protection of liability coverage, you’ll be on the hook for every penny of damage caused!

Am I Required to Report an Accident in New Mexico to Authorities?

If you’ve ever been in a minor car accident, you’ve had to make a difficult choice. And that choice is this: Do you report the accident or not?

You need to report the accident if you file an insurance claim. However, filing a claim may drive your premiums up and be more expensive in the long run than simply making minor repairs to your car. But if the accident is severe enough, you may be forced to report it.

So, are you required to report an accident in New Mexico? And if so, what kind of accidents do you have to report?

You must report an accident if it results in the injury or death of anyone involved. You must also report an accident if it results in property damage of $500 or more. Make sure to report these accidents to the local police department or, if you are outside a municipality, report to the nearest sheriff’s office.

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What Is Driving Like in New Mexico?

Perhaps the most popular question we get is “How much car insurance do I need?” There is no answer that is perfect for everyone. Mostly, how much coverage you get depends on how likely you are to get in an accident.

With that in mind, what is driving in New Mexico really like? Relatively speaking, it is dangerous to drive in New Mexico. Given how many accidents happen each year and the fact that a fifth of the driving population has no insurance at all, it’s important to keep yourself safe with good collision coverage.

How Many Car Accidents Happen in New Mexico?

One of the most common questions we get is “How much car insurance should I have?” But it is difficult to answer this question because it all comes down to how much coverage you think you need and how safe it is to drive in your area.

Generally speaking, how safe is it to drive in New Mexico? The state typically has 40,000 car accidents each year, and these accidents result in more than 25,000 injuries each year. Make sure you have enough car insurance to protect you against both damage to both your body and your car.

How Many Uninsured/Underinsured Motorists Are in New Mexico?

One of the optional kinds of insurance coverage you can get is uninsured/underinsured motorist coverage. The purpose of this insurance is simple: to protect you in the event that you are in a car accident with someone who either doesn’t have enough car insurance or even has no insurance at all.

Deciding whether or not you need this additional protection means learning how many of these dangerous drivers are on the road. So, just how many of these drivers are sharing the streets with you in the state?

In New Mexico, over 21% of drivers are driving without any insurance coverage at all. And there are plenty of drivers on top of that who simply have insufficient insurance. Given these numbers, we highly recommend protecting yourself with additional coverage!

FAQs About New Mexico Car Insurance

I Am a Low-Income Driver. What Can I Do About Getting Car Insurance in New Mexico?

You cannot legally drive in New Mexico without car insurance. But what if you don’t have much money? Fortunately, there are easy steps you can take to get the cheap car insurance you need.

First, ask your insurance carrier about car discounts. You may already qualify for certain discounts that can drive your premium down.

Second, don’t be afraid to shop around for a new insurance carrier. Doing so is the best way to get a new rate, and if you pay for insurance by the month, you can get a new carrier at any time.

Finally, make sure to only get the insurance coverage you need. If you drive a relatively old car, you may be better off just getting liability insurance and saving money on your premium each month.

Can an Undocumented Worker Get Car Insurance in New Mexico?

Compared to most states, New Mexico has a relatively large population of undocumented workers. Most of these workers have to drive around each day. But is it possible for undocumented drivers to get car insurance?

The short answer is yes. It is still possible for undocumented workers to get a driver’s license in New Mexico. And so long as you have a license, you can purchase car insurance, though not every carrier is going to offer coverage to undocumented drivers. Once more, your best bet is to reach out to different carriers until you find the coverage and price that you need!

Is It Possible to Get Car Insurance in New Mexico With a DUI Mark on My Record?

A DUI is one of the worst offenses you can get on your driving record. Getting a DUI means you could face nasty fines, a suspended license, and even jail time. And it also has an effect on your car insurance.

Because of this, many who have a DUI have another big question: Is it possible to get car insurance in New Mexico when you have a DUI on your record?

Yes, you can still get car insurance, though you are going to pay a lot more for it. On average, New Mexico residents with a DUI pay an extra 56% each month on their car insurance. And you may need to shop around for another carrier because not every insurance company offers coverage for those with a DUI conviction.

Get a New Mexico Car Insurance Quote Today!

Welcome to New Mexico sign
Now you know the most important things about getting car insurance in New Mexico. But do you know how to find an insurance carrier you can trust with your family’s life?

Here at Freeway Insurance, we specialize in keeping you and your family safe. And we’re ready to help you get started today! Come get started with a quote online, visit us at an office near you, or call us at (800) 777-5620 for a quote.

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