New Mexico has beautiful landscapes. It offers a laid back, artistic culture where you’ll find friendly people from all walks of life. The state also has an affordable cost of living and low taxes. 

This means that you can easily get cheap car insurance. New Mexico boasts affordable insurance, so if you’re looking for low cost auto insurance that fits your needs, get a cheaper car insurance quote from Cheap Insurance.

Quick New Mexico Car Insurance Facts

  • New Mexico has a minimum liability insurance requirement known as the 25/50/10 rule.
  • The average cost of full coverage car insurance in New Mexico is $1,419 per year.
  • The cost of minimum liability insurance coverage is roughly $385 per year.
  • Approximately 20.8% of New Mexico drivers are uninsured, one of the highest rates in the country.
new mexico car insurance

Land of Enchantment Cruising: Updates & Insurance Insights for New Mexico 2024

Hit the open road and explore New Mexico’s breathtaking landscapes and vibrant cities with these key updates for drivers in 2024

New Mexico Vehicle Code Changes:

  • Distracted driving crackdown: Effective July 1st, holding a phone while driving becomes completely prohibited, even at stoplights. Hands-free devices remain acceptable. (Source: New Mexico House Bill 8)
  • Increased penalties for driving without insurance: Expect harsher fines and potential vehicle impoundment for driving without valid auto insurance. (Source: New Mexico Statutes Section 66-5-304)
  • Nontraditional communication or disability registry inclusion: Individuals using nontraditional communication devices or with accessibility needs can register with the state for emergency responders. (Source: New Mexico Statutes Section 66-2-18)

Remember: These are just highlights, and other changes may apply. Visit the New Mexico Department of Motor Vehicles website for complete information. (Source: New Mexico Department of Motor Vehicles)

Average Auto Insurance Rates in New Mexico (2024):

(Sources: The Zebra, ValuePenguin)


Full Coverage

Minimum Coverage

State Farm












Liberty Mutual



Remember: Individual rates in New Mexico can vary significantly based on driving history, location, vehicle type, and desired coverage. Consider factors like the mandatory 25/50/10 liability insurance limit when comparing affordable car insurance quotes in New Mexico.

Minimum New Mexico Car Insurance Coverage

Information about minimum car insurance coverage requirements in New Mexico can be found on the state’s Motor Vehicle Division website.

New Mexico requires minimum auto insurance for bodily injury and property damage liability. If you drive in the state, be prepared to carry at least the following auto insurance coverage:

Property damage: $10,000 coverage for a single accident

Bodily injury/death: $25,000 for one person, $50,000 for two or more people

Getting Affordable Car Insurance In New Mexico

Getting cheap car insurance in New Mexico is easier than you might think. Here are several tips to help you find cheap insurance:

  1. Compare auto insurance quotes. Rates can vary widely from one company to another. Sites such as can provide you with instant inexpensive car insurance quotes, saving you time and money.
  2. Consider your vehicle. Rates vary based on the vehicle you drive. Smaller cars tend to have lower price of vehicle insurance than large SUVs or luxury vehicles.
  3. Be a safe driver. Avoid accidents and speeding tickets and you’ll save more than a person with a checkered driving history.

New Mexico Auto Insurance Discounts

Low cost car insurance in New Mexico is available, why not try to save more money? Do you qualify for these discounts?

Good Driver: Good drivers with no tickets or claims can save 10–30%.

Good Student: Young drivers who attend high school or college and have at least a B average can save as much as 20%.

Use Telematics: If you allow your car insurance provider to install a device in your vehicle to track your driving, you could save as much as 30%.

Bundling: Use the same car insurance providers for vehicles with home insurance or renters insurance and save 10% or more.


What is the average car insurance cost in New Mexico?

The average cost for car insurance coverage in New Mexico is $1,419 per year.

How much is auto insurance per month in New Mexico?

The average cost for auto insurance coverage in New Mexico is approximately $118 per month.

What is the penalty for driving without automobile insurance in New Mexico?

You could spend 90 days in jail and pay a $300 fine.

What is driving like in New Mexico?

Some of the roads in New Mexico are in poor condition due to a lack of funding. However, many areas of the state offer the ideal driving. The highways are virtually empty, with a largely unenforced speed limit of 75 mph. Exits are few and far between, making it hard to get lost.

How can I save money on my car insurance policy in New Mexico?

Here are a few ways to get cheap auto insurance in New Mexico

  • Don’t drink and drive. A DUI can increase your insurance premiums dramatically for a long time.
  • Increase your deductibles. This will lower the cost of auto insurance.

Other Types of Auto Insurance Coverages in New Mexico

Each state offers different types of car insurance coverages. Here are some additional types of coverages you may want to consider if you live in New Mexico:

Uninsured Motorist Coverage (UMC)/Underinsured Motorist Coverage (UIM)

Medical Payments Coverage

Physical Damage Coverage

Additional kinds of coverage 

Endorsements and Riders

  • Towing and road service: Broke down? This insurance coverage varies but may pay for services such as gas, battery charges, flat tires, and the towing.
  • Rental car reimbursement: This coverage will reimburse you for a rental car when you cannot drive your vehicle. 
  • Gap insurance: This insurance covers the gap between the balance of your auto loan and the true value of your vehicle, which can be significant.