Everything You Need to Know About Auto Insurance in New Mexico

New Mexico, a state brimming with natural beauty and cultural wonders, invites you to embark on a journey like no other. From the desert plains to the mountains, this southwestern gem offers diverse landscapes that will leave you in awe.

Visitors can explore ancient Native American ruins, hike through national parks, or hit the ski slopes during the winter months. This region also boasts a rich cultural heritage, with vibrant art scenes and traditional adobe architecture.

As you explore ancient ruins and immerse yourself in this state, it is crucial to keep in mind the importance of securing your vehicle with the right insurance coverage. The knowledgeable agents at InsureOne are dedicated to helping you find the best auto insurance coverage at an affordable rate.

How Much Does Car Insurance Cost in New Mexico?

The cost of car insurance in New Mexico is typically lower than the national averages for both full and minimum coverage.

On average, a full coverage policy in the Land of Enchantment costs $1,591 per year, while a minimum coverage policy costs around $346. In comparison, the national averages are $2,014 and $622, respectively.

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Reasons Why Insurance Is So Cheap in New Mexico

There are a few factors contributing to New Mexico’s lower insurance rates. Firstly, relatively mild weather plays a role in minimizing the risk of extreme weather-related damages or accidents. Secondly, the state’s low population density means fewer cars on the road, resulting in reduced chances of congestion and accidents. Combined, these factors help keep average car insurance premiums in New Mexico at a more affordable level.

Because of these conditions, car insurance in New Mexico is cheaper than in neighboring states. For instance, in Colorado, full coverage insurance costs $2,121, while in Arizona, it is $1,810.

Affordable Car Insurance Rates Comparison by Cities in New Mexico

For a comparison of the average monthly premiums paid by drivers in different cities across the state, check out our breakdown below.

City Full Coverage Insurance Liability Insurance Coverage
Albuquerque $155 $40
Las Cruces $118 $32
Rio Rancho $143 $40
Santa Fe $135 $36
Roswell $125 $35
Farmington $118 $30
Hobbs $137 $33
Alamogordo $110 $29

Our average monthly premiums by city are based on the following methodology: male, age 30, lowest possible legal coverage allowed by New Mexico.

How Bundling Your Vehicle and Homeowners Insurance Can Save You Money in New Mexico

By combining their auto and homeowners insurance policies, residents of New Mexico can enjoy considerable savings. On average, bundling these insurance policies can lead to a 15% reduction in overall costs. This means you can save an average of $413 per year.

Not only does bundling provide significant cost savings, but it also simplifies the insurance process by consolidating policies with a single insurer, making it easier to manage and understand coverage.

What Types of Auto Discounts are Available in New Mexico?

By taking advantage of available auto insurance discounts, you can significantly reduce your insurance premiums and save money. One such discount is the good driver discount, which rewards individuals with a clean driving record and safe driving habits.

You can also lower your rate if you qualify for any of the following discounts:

  • ·Good driver
  • Military
  • Good student
  • Paperless billing
  • Loyalty
  • Anti-theft
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New Mexico Car Insurance Laws

In New Mexico, drivers are required to carry a minimum liability coverage of 25/50/10.

This mandatory coverage must be maintained at all times, and drivers need to have proof of insurance to demonstrate compliance with this . Let’s take a closer look at what this mandatory coverage entails.

What Are the Mandatory Car Insurance Requirements in New Mexico?

The minimum requirement for a basic policy in this state is 25/50/10 liability coverage. This coverage is designed to pay for costs you may be responsible for in a crash. Specifically, it includes:

  • $25,000 for medical expenses or funeral expenses in the event of injury or death of an individual
  • $50,000 to cover treatment and expenses for injuries or deaths if two or more people are involved
  • $10,000 to cover property damage

These amounts represent the minimum required by the state. To enhance your level of protection, you have the option to increase the liability coverage on your policy or add additional coverages.

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

Under the New Mexico Mandatory Financial Responsibility Act, all drivers in the state are required to carry minimum liability car insurance or demonstrate an alternate form of financial responsibility, such as a bond. Failing to comply with this requirement is considered a misdemeanor in the state and can lead to the suspension of your vehicle registration.

The penalties for driving without insurance include a fine of up to $300 and a maximum jail time of 90 days, or a combination of both. If you fail to return your license plates and vehicle registration to the New Mexico Motor Vehicle Division (MVD) immediately after the suspension, the fine can escalate to $1,000. Alternatively, the court may decide to impose a jail term of up to six months, or a combination of fines and imprisonment.

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

In New Mexico, your insurance carrier is permitted to consider various factors when determining your insurance rates. These factors include:

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

If you make any changes to these factors, such as improving your credit history, it is important to inform your insurance carrier. Making positive changes in these areas may potentially lead to a lower monthly premium.

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Insurance That Helps You Prepare for the Future

Car insurance is not just about covering immediate risks; it is about preparing yourself for the uncertainties of the future.

It provides coverage for potential lawsuits resulting from accidents and protects against unexpected financial burdens such as weather-related damages or theft.

Car insurance can also offer additional benefits or supplementary coverages. Some policies provide roadside assistance, rental car reimbursement, or even coverage for personal belongings inside the vehicle. These additional benefits can prove invaluable in times of emergencies or inconveniences, helping you stay prepared for unexpected situations.

If you want to enjoy these and more benefits, remember that at InsureOne, our expert agents help you find the best auto insurance with customizable options that best meet your needs.

What Is Driving Like in New Mexico?

New Mexico’s climate can vary widely across the state due to its diverse geography. The northern mountainous regions experience cooler temperatures, with average temperatures ranging from the low 20s in January to around 60 degrees Fahrenheit in July. Meanwhile, the southern lower elevations have warmer temperatures, with averages ranging from the middle 40s in January to the low 80s degrees in July. However, the state overall has a mostly arid or semi-arid climate, with hot summers and mild winters.

These climatic conditions can affect driving, especially during the summer months when temperatures can reach extreme highs. The high temperatures can cause engine problems, tire blowouts, and increased risk of tire failure. Meanwhile, the state’s monsoon season, which typically runs from June through September, can lead to sudden flash floods, causing road closures and making driving conditions hazardous.

To overcome these adversities, it’s a good idea to always be prepared and informed about the weather in the area where you live.

How Many Car Accidents Happen in New Mexico?

Overall traffic fatalities in New Mexico have reached their highest point in at least the last 10 years, increasing from 365 in 2020 to 427 in 2021. Speeding and aggressive driving were some of the main factors that have contributed to these numbers.

The following chart shows the fatal crashes that took place in various cities across the state that year.

City Fatal Crashes in 2021
Albuquerque 125
Alamogordo 4
Las Cruces 9
Rio Rancho 8
Santa Fe 8
Roswell 1
Farmington 7
Hobbs 3

Source: U.S. Department of Transportation National Highway Traffic Safety Administration.

How Many Uninsured/Underinsured Motorists Are in New Mexico?

In New Mexico, having auto insurance is of utmost importance, as the state has a concerning number of uninsured drivers. Shockingly, nearly 21.8% of drivers in New Mexico do not carry insurance coverage.

This alarming statistic led the state to rank number 4 in 2019 among states with the highest percentage of uninsured or underinsured motorists. Given this situation, it becomes essential for every driver to protect themselves and their vehicles by ensuring they have proper auto insurance.

Get the Best Car Insurance in New Mexico Today

At InsureOne, we provide a convenient and comprehensive solution for all your auto insurance needs. Our team of expert agents is dedicated to understanding your unique requirements and assisting you in finding top-quality insurance options perfectly tailored to suit you.

Save time and money with our efficient quote research process, where we will carefully examine multiple options that align with your needs. Whether you prefer to get a quote online, visit one of our offices, or speak with us directly at (800) 836-2240, we are here to assist.