What car insurance costs in New Mexico

How New Mexico's bill compares

Each year the National Association of Insurance Commissioners (NAIC) totals the premiums insurers report by state. For 2023 New Mexico's average expenditure was $1,082 per insured car, 13% above the $958 of 2022. Expenditure counts liability-only and fully covered cars together; for a car with liability, collision and comprehensive, the combined premium averaged $1,301.

Liability averaged about 15% below the national figure and collision about 10% below. Comprehensive, which pays for theft, glass, weather and other non-crash damage, ran about 9% above. The combined premium for full coverage ended up roughly 10% under the U.S. number. Your own quote will turn on your vehicle, record and ZIP code; see how location affects a premium.

Coverage New Mexico law requires

New Mexico requires every vehicle owner to carry insurance or other evidence of financial responsibility. Section 66-5-208 of the New Mexico Statutes sets the amounts: $25,000 for injury or death of one person, $50,000 for two or more people in one accident and $10,000 for property damage, or 25/50/10. A surety bond or cash deposit used instead must total $60,000.

• Uninsured and underinsured motorist coverage comes with every policy written for a car registered or garaged in New Mexico under Section 66-5-301. You may reject it, and you may buy it up to your own liability limits.
• Property damage from an uninsured driver can carry a deductible: the statute lets insurers exclude the first $250, which the Office of Superintendent of Insurance describes as a $250 deductible.
• Collision and comprehensive are optional under state law; a lender may insist on them.

A $10,000 property damage limit buys little against a late-model car, and with roughly one driver in four uninsured, the coverage that protects you from them is the line to think hardest about before rejecting. Our page on limits and deductibles walks through how much each step up costs and covers.

Credit and the price of a New Mexico policy

The Office of Superintendent of Insurance (OSI) tells consumers that insurers may use credit scores when setting premiums: a higher score can lower the price and a lower one can raise it. Companies weigh credit differently, which is one reason quotes for the same driver can differ. Read how credit-based insurance scores work before you shop, and check your credit reports for errors.

OSI's consumer guidance also lists discounts insurers may offer: bundling home and auto, insuring more than one vehicle, airbags and anti-lock brakes, membership in certain organizations, and a defensive driving course, which it flags as especially relevant for drivers 55 and older. These are offered at each company's discretion.

Coverage for drivers insurers turn away

The New Mexico Motor Vehicle Insurance Plan was created for eligible drivers who seek coverage and can't get it in the voluntary market. A licensed agent can tell you whether you qualify. Our guide to assigned risk plans covers how the application works and how to return to a regular insurer once your record improves.

Ways to bring a New Mexico premium down

1. 1 Compare at least three quotes on the same limits and deductibles, using our checklist for comparing quotes line by line.
2. 2 Ask for each discount OSI lists, and if you are 55 or older, ask whether a defensive driving course would lower your rate.
3. 3 Price uninsured motorist coverage instead of rejecting it by reflex. Ask what it adds to the premium at your liability limits.
4. 4 Bring disputes to OSI. You can dispute a cancellation or non-renewal with the Office of Superintendent of Insurance and file complaints through its website.

Questions drivers ask