How Much Does Car Insurance Cost for Good Drivers in New Mexico?

The words “low-cost” and “auto insurance” probably shouldn’t be used in the same sentence, in particular when you are trying to find the best insurance rates for good drivers. Because it’s not cheap, let’s start the ball rolling by going over some of the things that have a considerable impact on insurance premiums, and see if we can help you cut the cost of your next policy.

Trying to buy affordable auto insurance is confusing at best, and determining which company quotes the cheapest car insurance rates for good drivers will take even more diligence. Policy prices will probably be a little bit lower-priced than the average policy in New Mexico, with the decrease attributed to the potential for less claims that comes with offering insurance for safe drivers. Competitive coverage should be easy to buy from many preferred companies.
Every insurance provider uses different criteria for establishing rates, so first let’s look at the rankings for the car insurance companies that tend to be cheaper in New Mexico.

We do need to point out that New Mexico car insurance rates are determined by lots of factors that can increase the policy price. Simply improving your credit, having a teen driver, or getting a ticket for careless driving may cause policy rate changes resulting in some companies being more expensive than before.

Find the Cheapest Car Insurance for Good Drivers

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USAA offers some of the cheapest car insurance rates in New Mexico at around $657 annually. Allied, Safeco, Farm Bureau Mutual, and Farmers also make the cut as some of the lowest-priced New Mexico car insurance companies.

As shown in the rates above, if you are a policyholder with Allied and switched to USAA, you may see a yearly price reduction of approxmiately $263. Insureds with Safeco may save as much as $327 a year, and Farm Bureau Mutual customers might reduce rates by $557 a year.

Bear in mind that those premiums are averaged for all drivers and vehicles in New Mexico and are not factoring in a price discount for good drivers. So the insurer that fits you best may not even be featured in the above rate chart. That underscores the importance of why you need to compare rates from multiple companies using your own driver data and vehicle information.

For safe drivers, one of the big components that car insurance companies take into consideration when calculating insurance cost is the neighborhood you call home. Larger areas like Albuquerque, Artesia, and Los Alamos tend to have higher auto insurance costs, whereas more rural areas get the luxury of paying less.

The next table ranks the highest-priced areas in New Mexico for good drivers to buy an auto insurance policy in.

Information shown are comparative as specific location information can modify premiums substantially.

The vehicle requiring coverage is one of the largest considerations when comparison shopping for cheap car insurance for good drivers. Vehicles with economical engines, excellent safety ratings, or a low likelihood of having liability claims will cost less to insure than adrenaline junky models.

The information below features coverage premiums for a handful of the most budget-friendly automobiles to buy insurance for.

Price data assumes married male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, multi-vehicle, multi-policy, claim-free, and homeowner. Estimates do not factor in specific zip code location which can influence coverage prices greatly.

Based on these rates, you can conclude that cars like the Chevrolet Traverse, Subaru Forester, and Ford Escape are a few of the most affordable vehicles to insure for safe drivers.

Discounts on cheap car insurance for good drivers in New Mexico

Auto insurance companies that offer coverage for good drivers could also offer price discounts that could potentially reduce rates by as much as 40% or more if you meet the requirements. The best car insurance companies and the discounts they provide include:

• Progressive offers discounts for homeowner, multi-policy, multi-vehicle, online quote discount, continuous coverage, good student, and online signing.
• Farmers Insurance includes discounts for homeowner, electronic funds transfer, multi-car, good student, and bundle discounts.
• Farm Bureau may offer discounts for youthful driver, safe driver, 55 and retired, multi-policy, and driver training.
• State Farm may have discounts that include driver’s education, multiple policy, Steer Clear safe driver discount, anti-theft, passive restraint, and accident-free.
• GEICO has discounts for defensive driver, multi-policy, five-year accident-free, driver training, multi-vehicle, and anti-theft.
• SAFECO offers premium reductions for anti-lock brakes, teen safe driver, anti-theft, multi-car, bundle discounts, and accident prevention training.
• Liberty Mutual may include discounts for multi-policy, multi-car, preferred payment discount, teen driver discount, hybrid vehicle, and newly retired.

The chart below illustrates the difference between car insurance costs with and without discounts. The rates are based on a male driver, no claims or driving violations, New Mexico state minimum liability limits, comp and collision included, and $500 deductibles.

The first bar for each age group shows the price with no discounts. The second shows the rates with multiple policy, marriage, passive restraint, accident-free, claim-free, and vehicle safety discounts applied. With discounts applied, the the average yearly reduction on car insurance for good drivers is 28% or $566.

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Accidents and violations increase rates

A great way to find the most affordable car insurance premiums for safe drivers is to be an attentive driver and avoid accidents and keep your driving record clean. The chart below illustrates how traffic citations and accidents impact car insurance rates for each different age group. The data assumes a single male driver, full coverage, $500 deductibles, and no additional discounts are factored in.

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The data charted above shows the average cost of car insurance in New Mexico per year with no accidents or violations is $2,027. Add in two speeding tickets and the average cost jumps to $2,680, an increase of $652 each year. Then add in two accidents along with the two speeding tickets and the annual cost of car insurance for good drivers jumps again to an average of $5,247. That’s an increase of $3,219, or $268 per month, just for not being a responsible driver!

How to find budget-friendly insurance for good drivers

Lowering your rates is not difficult, and here are some of the better money-saving suggestions that can help you find the cheapest coverage.

• Higher comprehensive and collision coverage deductibles will save money
• Increase your credit score
• Keep your driving record clean
• Accidents can significantly increase rates
• Bundle home and auto and earn a discount
• Avoid filing excessive claims
• Compare rates and switch if you can find a better deal

The last suggestion is extremely valuable, as we stressed in the prior information. Auto insurance rates adjust frequently, so drivers shouldn’t hesitate to buy from a different company if a more affordable price is available.

Many drivers prefer to stick with one company, but it’s not recommended if that loyalty results in overpaying a small fortune. It only takes a couple minutes to compare rates to find cheaper auto insurance for good drivers.

Cheap insurance quotes for safe drivers

Consumers have many ways to buy car insurance in New Mexico, but the most preferred ways are through a non-exclusive or independent agent, a captive (or exclusive) agency like Liberty Mutual or Allstate, or buying direct from a company like Progressive or Geico.

They all have the same basic principle, but they differ slightly in how they function.

Independent agents have contracts with many companies and can get rate quotes from each one. Independent agents can compare multiple rates, which can give you the best chance of finding a lower price. If you are not satisfied with one company, they simply move your policy to a different company which makes it simple for you.

An agent who is captive is able to place business with a single company, two of the more popular are a Farmers or Allstate agent. Exclusive agents cannot quote prices from more than a single company, so they really need to provide good service.

Buying direct means you do not use local agents and instead shop direct online or over the phone from a company like Geico or Esurance. This car insurance option can be a good choice for families who do not have a need for a risk management assessment and have a decent understanding of what coverages, limits, and deductibles they need.

Which way is best for finding cheap car insurance for good drivers in New Mexico? It would be easy to say shopping direct saves money since that eliminates agent commissions, but that turns out to not be true. A valid argument could also be made that buying car insurance from an independent agent saves the most money since there are more companies to choose from, but that is not accurate either. For some people, exclusive agencies have very competitive rates that other companies cannot beat.

Because of the variability of car insurance rates, really the only way to get the lowest rate is to get rate quotes and compare. Smart shoppers will get price quotes all three ways to have enough rates to compare. For a list of companies with some of the cheapest New Mexico car insurance rates, click here to view.