The words “low-priced” and “insurance” really shouldn’t be used together, specifically when you are looking for the cheapest coverage for drivers with bad credit. To help control this cost, let’s start the ball rolling by going over some of the factors that have an impact on auto insurance premiums, and see if you can slash the price of your next policy.
Finding budget car insurance is confusing at best, and deciding which companies have the cheapest auto insurance rates for drivers with bad credit will involve additional perseverance. Coverage rates will be slightly more expensive than the average price in New Mexico because of the higher likelihood of claims associated with selling coverage for people with poor credit, but economical insurance may be attainable if you shop around. Every car insurance company has their own process for setting prices, so let’s take a look at the most budget-friendly auto insurance companies in New Mexico.
Cheap Insurance Rates with Bad Credit
Rank | Company | Cost Per Year |
---|---|---|
1 | USAA | $677 |
2 | Allied | $958 |
3 | Safeco | $984 |
4 | Farm Bureau Mutual | $1,178 |
5 | Farmers | $1,276 |
6 | Central Mutual | $1,314 |
7 | The Hartford | $1,326 |
8 | State Farm | $1,336 |
9 | Travelers | $1,522 |
10 | Progressive | $1,550 |
11 | GEICO | $1,592 |
12 | MetLife | $1,594 |
13 | California Casualty | $1,639 |
14 | Encompass | $1,711 |
15 | Allstate | $2,314 |
16 | Liberty Mutual | $2,554 |
17 | Sentry | $3,208 |
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USAA offers some of the lowest car insurance rates in New Mexico at around $677 each year. Allied, Safeco, Farm Bureau Mutual, and Farmers would also be considered some of the cheaper New Mexico insurance companies.
In the above rates, if you buy coverage from Farmers and switched to Allied, you could earn yearly savings of around $318. Policyholders with Central Mutual might save as much as $356 a year, and The Hartford customers might lower prices by up to $368 a year.
Remember that these policy prices are averages for all drivers and vehicles in New Mexico and and are not calculated with a rate surcharge for drivers with bad credit. So the auto insurance company that can offer you the best rate may not even be included in the chart above. That helps illustrate why you need to compare rates from multiple companies using your own driver information and specific vehicle type.
For people with poor credit, one of the largest things that affect rate quotes is where your residence is in New Mexico. Areas with increased crime or more people like Albuquerque, Artesia, and Los Lunas tend to pay higher rates, whereas areas with lower crime rates and fewer weather claims have the gratification of the best cheap car insurance for drivers with bad credit in New Mexico.
The table below illustrates the priciest cities in New Mexico for drivers with bad credit to buy car insurance in.
Rank | City | Annual Rate |
---|---|---|
1 | Albuquerque | $1,417 |
2 | South Valley | $1,336 |
3 | Artesia | $1,330 |
4 | Santa Fe | $1,316 |
5 | Los Lunas | $1,289 |
6 | Hobbs | $1,284 |
7 | North Valley | $1,277 |
8 | Espanola | $1,273 |
9 | Los Alamos | $1,256 |
10 | Rio Rancho | $1,256 |
11 | Roswell | $1,222 |
12 | Carlsbad | $1,201 |
13 | Gallup | $1,176 |
14 | Farmington | $1,172 |
15 | Lovington | $1,171 |
16 | Clovis | $1,169 |
17 | Deming | $1,155 |
18 | Las Vegas | $1,149 |
19 | Portales | $1,140 |
20 | Las Cruces | $1,098 |
21 | Anthony | $1,098 |
22 | Silver City | $1,095 |
23 | Chaparral | $1,070 |
24 | Sunland Park | $1,065 |
25 | Alamogordo | $1,041 |
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Table data uses estimated as the specific zip code location can modify coverage rates significantly.
Ending up with a high-quality insurer can be challenging considering how many companies provide coverage in New Mexico. The company ratings shown next could help you analyze which auto insurance companies you want to consider comparing rates from.
These ratings include companies with a nationwide focus, so companies without a large exposure will not be included in the list. If you would like to check rates from the most competitive companies in New Mexico, just click here.
Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
---|---|---|---|---|---|---|
USAA | 98 | 100 | 100 | 94% | A++ | 98.6 |
American Family | 98 | 89 | 100 | 86% | A | 95.4 |
State Farm | 88 | 93 | 96 | 90% | A++ | 92.4 |
The Hartford | 94 | 92 | 90 | 89% | A+ | 91.7 |
AAA Insurance | 88 | 89 | 95 | 91% | A | 91.2 |
GEICO | 84 | 93 | 93 | 89% | A++ | 90.3 |
The General | 89 | 91 | 89 | 88% | A- | 90 |
Titan Insurance | 90 | 87 | 91 | 95% | A+ | 89.6 |
Progressive | 84 | 91 | 93 | 87% | A+ | 89.5 |
Allstate | 85 | 90 | 92 | 88% | A+ | 89.3 |
Nationwide | 87 | 88 | 84 | 90% | A+ | 88.7 |
Liberty Mutual | 84 | 87 | 93 | 88% | A | 88.5 |
21st Century | 85 | 86 | 87 | 88% | A | 86.7 |
Esurance | 85 | 80 | 95 | 87% | A+ | 85.9 |
Safeco | 85 | 85 | 85 | 86% | A | 85.8 |
Travelers | 80 | 87 | 87 | 83% | A++ | 85.2 |
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Data Source: Insure.com Best Car Insurance Companies
The illustration below demonstrates how deductibles can impact annual premium costs when researching cheap insurance for drivers with bad credit. The premiums are based on a married female driver, comp and collision included, and no discounts are applied to the premium.
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As shown above, a 50-year-old driver could reduce rates by $220 a year by changing from a $100 deductible up to a $500 deductible, or save $334 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old, could roll back prices $544 each year just by choosing larger deductibles.
If you do raise deductibles, it is a good idea to have enough funds in savings to allow you to pay the extra out-of-pocket expense, which deters some people from using high deductibles.
Lowering your rates is not difficult, and here are a few money-saving suggestions that can help drivers locate low-cost car insurance.
That last tip is incredibly necessary, as was pointed out in the prior information. Coverage rates change constantly, so drivers shouldn’t be resistant to buy from a different company if you can find a cheaper rate.
Having a favorite company is great, but it’s not a good idea if that devotedness results in you overpaying lots of money. Take a few minutes and shop around and find cheaper auto insurance for drivers with bad credit.