Who Has Cheap Auto Insurance for Drivers Requiring a SR22 in New Mexico?

Because the topic is auto insurance, the words “cheap” or “affordable” really should not be used anywhere in the article as a descriptor for auto insurance rates. Nonetheless, cheap auto insurance for drivers requiring a SR22 can be difficult to find. Don’t let that bother you, though, because there may be ways you can get car insurance that fits into your budget.

Establishing which company offers the best insurance rates for drivers requiring a SR22 calls for a tad more effort than just quoting one company’s rates. Every insurance provider uses a different method for setting rates, so let’s examine the most budget-friendly insurance companies in New Mexico.

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USAA may have some of the lowest car insurance rates in New Mexico at around $657 annually. Allied, Safeco, Farm Bureau Mutual, and Farmers would also make the list of some of the lowest-priced New Mexico car insurance companies.

In this example, if you are a customer of Farmers and switched to Allied, you could see an annual premium reduction of upwards of $356. New Mexico drivers with The Hartford may save as much as $406 a year, and State Farm insureds might see rate reductions of $416 a year.

Bear in mind that those rates are averaged for all types of insureds and vehicles and are not factoring in a price surcharge for drivers requiring a SR22. So the company that can offer you the best rate may not even be in the company chart above. That illustrates why you need to compare prices as often as possible using your own driver data and vehicle information.

The type of vehicle you are trying to insure is one of the main factors when shopping around for the cheapest insurance for drivers requiring a SR22. Vehicles with high performance, a lack of modern safety features, or a high likelihood of having liability claims will cost quite a bit more to insure than more modest models. The information below estimates car insurance premiums for the more afforable vehicles to buy coverage for.

Premium data assumes single male driver age 40, two speeding tickets, two at-fault accidents, $1000 deductibles, and New Mexico minimum liability limits. Discounts applied include multi-policy, homeowner, and multi-vehicle. Premium costs do not factor in specific location which can increase or decrease prices greatly.

Data variables include single male driver age 40, two speeding tickets, two at-fault accidents, $1000 deductibles, and New Mexico minimum liability limits. Discounts applied include multi-vehicle, homeowner, and multi-policy. Rates do not factor in specific garaging location which can raise or lower price quotes considerably.

Price data assumes single male driver age 40, two speeding tickets, two at-fault accidents, $1000 deductibles, and New Mexico minimum liability limits. Discounts applied include multi-vehicle, multi-policy, and homeowner. Premium amounts do not factor in vehicle location which can increase or decrease auto insurance rates substantially.

For New Mexico drivers, one of the components that is looked at to determine the cost of insurance is where your car is garaged in New Mexico. Areas that are densely populated or have higher claim frequency like Albuquerque, Santa Fe, and Hobbs are more likely to have higher rates, whereas areas with less congestion benefit from having to pay less for coverage.

The next table illustrates the most costly cities in New Mexico for drivers requiring a SR22 in which to purchase auto insurance.

Rates are approximated as zip code location can affect insurance rates significantly.

Full coverage or liability only

Finding cheap car insurance for drivers requiring a SR22 in New Mexico is probably important to most drivers, and one of the fastest ways to pay less for insurance is to not insure for full coverage. The diagram below illustrates the comparison of annual premium costs with full coverage compared to only the New Mexico minimum liability coverage. The premiums assume no accidents or driving violations, $250 deductibles, marital status is single, and no policy discounts are applied.

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As an average, full coverage costs an extra $2,301 per year over and above liability only. That is a large expense and it proposes the question if it’s worth it to buy full coverage. There isn’t a written rule of when to exclude physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of coverage is more than 10% of the settlement you would receive from your company, then it might be time to buy liability only.

There are some scenarios where only buying liability is not financially feasible. If you still have a loan on your vehicle, you must maintain physical damage coverage as part of the loan requirements. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should keep full coverage on your policy.

Which major car insurance company is best?

If you’re looking for the best car insurance for high risk drivers in New Mexico, the first places to look would be Geico, Allstate, Progressive, and State Farm. Combined they insure about half of all car insurance policies written. The next table rates some of the different options that are available from each company.

How to find economical insurance for drivers requiring a SR22

Lowering your rates is not difficult, and here are some of the better penny-pinching solutions that can help New Mexico drivers quote lower-cost coverage.

• Save money by insuring older vehicles for liability only
• Earn discounts for being claim-free
• Being accident-free can lower rates significantly
• Avoid speeding and other traffic citations and pay less
• Buy vehicles with five-star safety ratings
• Buying car and homeowners insurance together can save money
• Compare rates and switch if you can find a better deal

The final tip is certainly vital, as was stressed in this piece. Insurance prices can change significantly in a year, so don’t be hesitant to buy from a different company if a better deal can be had. Sticking with a specific company is fine, but is isn’t recommended if that inflexibility results in costing you major coinage every year. Take a few minutes and compare prices to find cheaper insurance for drivers requiring a SR22.