Best Cheap Auto Insurance for Drivers Under 21 in New Mexico

One of the more important criteria that auto insurance companies use to determine rate quotes is where you choose to live. Areas with increased crime or more people like Albuquerque, Artesia, and Hobbs tend to have higher rates, whereas less populated areas have the benefit of the best cheap auto insurance for drivers under 21 in New Mexico.

The illustration below illustrates the highest-priced places in New Mexico for drivers under 21 to purchase car insurance in.

Premium amounts are approximated as zip code location can change rates substantially.

The car, truck, or SUV you are insuring is probably the biggest factor when comparing quotes for the best cheap coverage for drivers under 21. Vehicles with high performance features, a lack of modern safety features, or a history of substantial liability claims will cost much more to insure than safer models.

The data below estimates car insurance rates for a number of the more afforable vehicles to buy coverage for.

Cost estimates assume single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in specific zip code location which can modify rates considerably.

Looking at the rates, makes and models like the Hyundai Elantra, Honda CR-V, Ford Escape, Chevrolet Traverse, and Toyota Prius are going to be a few of the cheaper vehicles to insure for minors. The cost of a car insurance policy will be higher anyway just because there is more liability risk for drivers under 21, but in general those vehicles will have the lowest insurance rates compared to all other vehicles.

Shopping around for cheap insurance is not always easy, and deciding which insurers offer the cheapest auto insurance rates for drivers under 21 will involve more quotes for comparison. Coverage prices could be significantly greater than the average policy in New Mexico, with the increase attributed to the higher likelihood of claims that goes along with offering coverage for minors, but affordable coverage should be obtainable with a little diligence. Each auto insurer has their own formula for setting prices, so first let’s look at the rankings for the overall cheapest auto insurance companies in New Mexico.

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USAA quotes some of the best car insurance rates in New Mexico at around $657 each year. Allied, Safeco, Farm Bureau Mutual, and Farmers are also some of the lowest-priced New Mexico auto insurance companies.

As the rates illustrate above, if you currently buy coverage from Allied and switched to USAA, you might achieve an annual savings of about $301. Drivers with Safeco may save as much as $347 a year, and Farm Bureau Mutual policyholders might cut rates by $521 a year.

To see how much you can save, click here to start a quote or feel free to get quotes from the companies below.

It’s important to note that these estimates are averaged for all drivers and vehicles in New Mexico and and are not calculated with a rate increase for drivers under 21. So the auto insurance company that has the cheapest price for you may not even be in the above list. That affirms the importance of why you need to get rate quotes using your own personalized driver profile and vehicle information.

Tickets and at-fault accidents raise rates

In a perfect world, the ideal way to obtain good auto insurance premiums in New Mexico for minors is to be an attentive driver and avoid getting tickets or having accidents. The example below illustrates how violations and accident claims can impact car insurance costs for each different age group. The price estimates are based on a single female driver, full physical damage coverage, $500 deductibles, and no discounts are taken into consideration.

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In the chart above, the average cost of car insurance in New Mexico per year with a clean driving record and no accidents is $1,449. Add in two speeding tickets and the average cost rises to $1,935, an increase of $486 each year. Then add one accident along with the two speeding tickets and the 12-month cost of auto insurance for drivers under 21 jumps again to an average of $2,424. That’s an increase of $975, or $81 per month, just for not driving attentively!

Best auto insurance company in New Mexico

Buying coverage from the best insurance company is difficult considering how many companies sell coverage in New Mexico. The rank data below could help you analyze which providers to look at when comparing auto insurance rates for drivers under 21. The ratings below include companies who write in the majority of U.S. states, so smaller companies that only insure vehicles in New Mexico will not be included in this list.

Allstate, Geico, State Farm, and Progressive: Who is cheapest?

When shopping around for car insurance for minors in New Mexico, the companies with the most market share are Allstate, Geico, State Farm, and Progressive. If you put them all together, they insure about 50% of all vehicles in the U.S.. The data below ranks pricing and service ratings, as well as optional policy coverages shoppers can find with each company.

Who has the cheapest insurance quotes for minors?

You have many ways to purchase auto insurance in New Mexico, but the most popular methods are using an independent or non-exclusive agent, a captive (or exclusive) agent such as Auto-Owners or State Farm, or direct from companies such as Progressive or Geico. Each way has the same basic process, but each is slightly different in how they work.

Independent insurance agents are appointed by several companies and can compare rates with each one. These types of agencies will quote rates with many companies, which may provide you with better odds of saving money. If cheaper coverage is found, your policy can be easily switched to a new company which makes it easier to save money.

An exlusive, or captive, agency is restricted to a single company such as an Auto-Owners or State Farm agent. This type of agents cannot shop your coverage around, which necessitates shopping around.

Buying from a direct company means skip local insurance agents and instead buy direct from companies such as Esurance or Progressive. This auto insurance option may be a decent choice consumers who do not need high amounts of coverage and have knowledge of how auto insurance works and possible exclusions.

So which way is best to buy the best cheap auto insurance for drivers under 21 in New Mexico? It would be simple to say shopping direct saves money since it doesn’t require paying agent commissions, but that is not always the case. We could also assume that an independent agency saves the most money since they have access to many companies, but again, that’s not a true statement. And occasionally, exclusive agencies have extremely competitive rates that are the cheapest in New Mexico.

Since auto insurance companies use so many rating factors, really the only way to buy the cheapest coverage is to get quotes and compare the rates. Industry experts recommend getting prices from all three types to give yourself enough choices. For a list of companies offering online discounts, click here to view.