Cheap Car Insurance for First-time Drivers in New Mexico

When the topic is car insurance, the word affordable really should not be used anywhere in the article to describe car insurance rates. Notwithstanding, cheap car insurance for first-time drivers can be extremely hard to find. But fear not, because we are going to show you some ways you can quote car insurance that is more budget-friendly.

Buying reasonably-priced auto insurance is not always easy, and finding out which companies offer the cheapest auto insurance rates for first-time drivers calls for even more shopping around. Insurance premiums will more than likely be significantly greater than the state average attributed to the added risk that comes with offering insurance for new drivers, but reasonable insurance may be available if you do a thorough comparison. Each company has their own unique process for determining rates, so let’s begin by examining the auto insurance companies with the most affordable rates in New Mexico.

We do need to point out that New Mexico auto insurance rates are calculated based on many things that control your annual premium. Events like a birthday, having a teen driver, or getting a speeding ticket can trigger rate changes that can cause some rates to be more expensive than competitors.

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USAA generally has some of the cheapest car insurance rates in New Mexico at around $657 each year. Allied, Safeco, Farm Bureau Mutual, and Farmers would also make the list of some of the best New Mexico auto insurance companies.

In the above example, if you currently have coverage with Allied and switched to USAA, you may see an annual premium reduction of about $263. Customers with Safeco could save as much as $327 a year, and Farm Bureau Mutual insureds might see rate reductions of $557 a year.

Remember that these premiums are averages for all types of insureds and vehicles and and are not figured with a rate surcharge for first-time drivers. So the car insurance company that can offer you the best price may not even be shown in the list of companies shown earlier. That points out the importance of why you need to get quotes using your own specific driver information and vehicle.

One of the key considerations that is used by car insurance companies to determine rate quotes is where you keep your car in New Mexico. More populated areas like Albuquerque, Los Lunas, and Los Alamos will most likely pay more, whereas areas with lower crime rates and fewer weather claims have the luxury of cheap auto insurance for first-time drivers in New Mexico.

The information below rates the most expensive cities in New Mexico for first-time drivers to purchase a policy in.

Information shown are comparative as specific location information can increase or decrease coverage rates greatly.

The vehicle you are seeking coverage for is a large factor when shopping around for cheap auto insurance for first-time drivers in New Mexico. Vehicles with reasonable performance levels, an excellent safety record, or a low likelihood of having liability claims will cost quite a bit less to insure than fast, unsafe models. The lists below presents auto insurance prices for a number of the most budget-friendly automobiles to buy coverage for.

Premium data assumes single female driver age 17, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in specific location information which can impact coverage prices greatly.

Data rating is based on single female driver age 17, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific location information which can influence auto insurance rates substantially.

Data based on single female driver age 17, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium amounts do not factor in the specific area where the vehicle is garaged which can affect premiums considerably.

Discounts on cheap auto insurance for first-time drivers in New Mexico

Auto insurance companies that provide policies for first-time drivers may also provide premium discounts that can reduce rates by 30% or more if you are eligible. Larger auto insurance companies and a partial list of their discounts are outlined below.

• GEICO has savings for air bags, federal employee, driver training, multi-vehicle, defensive driver, good student, and five-year accident-free.
• Auto-Owners Insurance may offer discounts for safe vehicle, group or association, paperless, multiple vehicles, paid in full, and teen driver.
• American Family policyholders can earn discounts including good student, defensive driver, Steer into Savings, early bird, mySafetyValet, and multi-vehicle.
• Esurance has discounts for emergency road assistance, paid-in-full, multi-car, good driver, online quote, safety device, and online shopper.
• Progressive includes discounts for multi-vehicle, online signing, good student, continuous coverage, homeowner, multi-policy, and online quote discount.
• State Farm may have discounts that include passive restraint, multiple autos, good driver, accident-free, student away at school, and Drive Safe & Save.
• AAA offers premium reductions for pay-in-full, multi-policy, education and occupation, good student, and good driver.

The example below compares insurance costs with and without discounts applied to the policy premium. The rates are based on a male driver, a clean driving record, no claims, New Mexico state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with continuous coverage, passive restraint, vehicle safety, anti-theft, good student, and paperless filing discounts applied. When drivers qualify for the discounts, the average amount saved each year on auto insurance for first-time drivers is 28% or $723.

google.charts.setOnLoadCallback(drawDiscqcibChart);function drawDiscqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Male Driver No Discounts’, ‘Male Driver with Discounts’],[‘Age 17’, 5213,3743],[‘Age 30’, 1823,1329],[‘Age 40’, 1823,1325],[‘Age 50’, 1649,1199],[‘Age 60’, 1595,1159]]);var options = {title: ‘Insurance Rate Comparison for First-time Drivers’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 500,’chartArea’:{left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’},colors: [‘#6791b9’, ‘#98bee2’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle in New Mexico’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);var chart = new google.visualization.BarChart(document.getElementById(‘qcibdisc’));chart.draw(data, options);}

Rate comparison of full coverage and liability-only

Finding cheap auto insurance for first-time drivers in New Mexico is important to most vehicle owners, and one good way to buy cheap insurance is to not buy comprehensive and collision coverage. The information below illustrates the comparison of insurance premiums with full phyical damage coverage and with liability coverage only. The rates are based on a clean driving record, no at-fault accidents, $100 deductibles, drivers are single, and no discounts are applied to the premium.

google.charts.setOnLoadCallback(drawFclqcibChart);function drawFclqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Full Coverage with $100 Deductibles’, ‘Liability Only’],[‘Age 20’, 3165,977],[‘Age 30’, 1645,539],[‘Age 40’, 1633,501],[‘Age 50’, 1483,469],[‘Age 60’, 1433,461],[‘Age 70’, 1733,613]]);var options = {title: ‘Rate Comparison of Full Coverage and Liability Only’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 500,’chartArea’: {left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’},colors: [‘#6791b9′,’#98bee2’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle in New Mexico’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);var chart = new google.visualization.BarChart(document.getElementById(‘qcibfcl’));chart.draw(data, options);}

As an overall average, comp and collision coverage costs an additional $1,849 per year more than insuring for liability only. That raises the question if paying for full coverage is worth it. There is no set guideline to delete full coverage on your policy, but there is a guideline you can use. If the yearly cost of full coverage is more than around 10% of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.

Is the best company Progressive, Geico, Allstate, or State Farm?

When it comes to buying car insurance for new drivers in New Mexico, the most popular companies are Progressive, Geico, Allstate, and State Farm. Combined they insure nearly half of all car insurance policies written. The table below ranks pricing and service ratings, plus some optional coverages that are available for customers.

Who has the cheapest insurance quotes for new drivers?

There are quite a few ways to shop for and buy auto insurance in New Mexico, but the most prevalent are through an exclusive agency such as Allstate or State Farm, an independent agent, or direct online or over the phone from a company like Geico or Progressive. All three ways can provide auto insurance quotes, but they differ slightly in how they provide price quotes.

Independent insurance agencies work with multiple companies and can get policy pricing from each one. They are able to give you more rate choices, which may give you a better chance of finding cheaper coverage. If the agent locates a cheaper price, you can get a different policy which prevents you from having to switch agents.

A captive or exclusive agent is restricted to quoting rates for one insurance company, two of the more popular are an Allstate or Liberty Mutual agent. These agents normally cannot quote rates from more than one company, so if rates are high, they cannot give you alternative choices.

If you want to buy auto insurance direct, you do not use a local insurance agent and buy buying direct from a company like Geico or Esurance. Shopping direct can be good for drivers who have limited assets and have a decent understanding of what auto insurance covers.

So out of those three methods, which one works best to find cheap auto insurance for first-time drivers in New Mexico? We’d like to tell you shopping direct results in the cheapest rates because you bypass the middleman, but that is generally not the case. It would also be easy to say an independent agency saves the most money since they can quote with many companies, but again, that’s not accurate. And sometimes, exclusive agencies may have prices that cannot be beaten by either independent or direct companies.

Due to the fact that auto insurance rates vary so much, the best way to get rock-bottom rates is to compare lots of quotes. We highly recommend getting price quotes from independent, exclusive, and direct to have enough rates to compare. A great place to start is our list of online companies offering discounts: click here to view.