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 rates, so if you’re looking for low-cost car insurance coverage that fits your needs, get a free quote from Cheap Insurance.

Quick New Mexico Car Insurance Facts

  • New Mexico has a minimum coverage requirement known as the 25/50/10 rule.
  • The average cost of full auto insurance coverage in New Mexico is $1,419 per year.
  • The cost of minimum 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 coverage limit when comparing options.

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 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 Cheap 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 save money:

  1. Compare car insurance providers. Rates can vary widely from one company to another. Sites such as Cheap Insurance can provide you with instant quotes, saving you time and money.
  2. Consider your vehicle. Rates vary based on the vehicle you drive. Smaller cars tend to have lower rates 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 Car Insurance Discounts

While New Mexico car insurance coverage is relatively low, 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 multiple vehicles and lines of 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 car insurance per month in New Mexico?

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

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

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

What is driving like in New Mexico?

Many 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 country. 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 car 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 your premium. 
  • Improve your credit. Insurers see people with better credit as more responsible, and responsible people tend to file fewer claims.

Other Types of Coverage

Each state offers different types of car insurance coverages. Here are some additional types of coverage 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 tow trucks.
  • 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.