How Much is Auto Insurance for Inexperienced Drivers in New Mexico?

The words “bargain” and “auto insurance” probably shouldn’t be used in the same sentence, especially when you are looking for the cheapest car insurance for inexperienced drivers. Because it’s so expensive, let’s introduce you to a few of the factors that impact auto insurance prices, and find out if you can lower the cost of the next policy you buy.

Cost and performance of the vehicle driven is one of the largest considerations when quoting cheap insurance for inexperienced drivers in New Mexico. Vehicles with reasonable performance levels, an excellent safety record, or a positive history of liability claims will cost less to insure than higher performance models. The tables below features auto insurance costs for a number of the most budget-friendly vehicles to insure in New Mexico.

Data variables include single female driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include homeowner, multi-policy, multi-vehicle, claim-free, and safe-driver. Table data does not factor in the specific area where the vehicle is garaged which can revise auto insurance rates greatly.

Above prices assume single female driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include multi-vehicle, multi-policy, safe-driver, homeowner, and claim-free. Premium costs do not factor in garaging location in New Mexico which can lower or raise coverage rates significantly.

Data rating is based on single female driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-vehicle, and multi-policy. Premium costs do not factor in zip code location which can decrease or increase price quotes significantly.

Deciding which company offers the most affordable car insurance rates for inexperienced drivers calls for a bit more effort than just getting one or two price quotes. Each company has a proprietary method for determining rates, so let’s examine the car insurance companies with the overall cheapest rates in New Mexico.

It’s important that readers know that New Mexico car insurance rates are calculated based on many things that may substantially change the cost of a policy. Getting older, adding a teenager to your policy, or having an accident can trigger changes in premium that may make certain companies cheaper than competitors.

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USAA may offer some of the most affordable car insurance rates in New Mexico at around $677 per year. Allied, Safeco, Farm Bureau Mutual, and Farmers also rank well as some of the best New Mexico car insurance companies.

As shown in the table above, if you currently have coverage with Farmers and switched to Allied, you may see an annual premium reduction of upwards of $315. New Mexico drivers with State Farm could save as much as $362 a year, and The Hartford insureds might lower prices by $378 a year.

Bear in mind that those rates are averages for all ages of drivers and types of vehicles and do not take into consideration a rate discount for inexperienced drivers. So the auto insurance company that can offer you the best rate may not even be featured in the rate chart shown above. That illustrates why you need to compare as many prices as possible using your own driver and vehicle profiles.

Discounts on cheap insurance for inexperienced drivers in New Mexico

Insurers that offer quotes for inexperienced drivers may also offer premium discounts that may potentially lower prices by 40% or more if you meet eligibility requirements. Companies and their possible discounts are detailed below.

The chart below visualizes the comparison of insurance costs with and without discounts applied to the policy premium. The premium estimates are based on a female driver, no claims or driving violations, New Mexico state minimum liability limits, full physical damage coverage, and $500 deductibles.

The first bar for each age group shows the price with no discounts. The second shows the rates with anti-theft, safe-driver, multiple vehicle, claim-free, passive restraint, and vehicle safety discounts applied. When taking advantage of discounts, the the average yearly reduction on car insurance for inexperienced drivers is 42% or $837.

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The diagram below shows how choosing a deductible can change annual premium costs when quoting cheap insurance for inexperienced drivers. The costs are based on a married female driver, comp and collision included, and no policy discounts are applied.

google.charts.setOnLoadCallback(drawDfdqcibChart);function drawDfdqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘$100 Deductible’,’$250 Deductible’,’$500 Deductible’,’$1,000 Deductible’],[‘Age 20’, 2713,2483,2225,1977],[‘Age 30’, 1895,1729,1539,1359],[‘Age 40’, 1877,1717,1533,1359],[‘Age 50’, 1643,1505,1347,1197],[‘Age 60’, 1565,1433,1281,1135],[‘Age 70’, 1699,1551,1393,1243]]);var options = {title: ‘Impact of Deductibles on Auto Insurance Rates in New Mexico’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 700,’chartArea’: {left:100,top:50,’width’: ‘100%’,’height’: ‘80%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},bar: {groupWidth: ‘80%’},colors: [‘#6791b9′,’#75a8d8′,’#98bee2′,’#bad4ec’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);formatter.format(data,3);formatter.format(data,4);var chart = new google.visualization.BarChart(document.getElementById(‘qcibdfd’));chart.draw(data, options);}

In the chart above, a 40-year-old driver could save $296 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $446 by switching to a $1,000 deductible. Young drivers, such as the 20-year-old example, could drop their prices as much as $736 or even more by selecting a higher deductible. If you do raise deductibles, it will be necessary to have enough savings set aside to offset the extra out-of-pocket expense that deters many people from opting for higher deductibles.

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

When comparing car insurance, the first places to look would be Allstate, Progressive, State Farm, and Geico. Between them, they insure almost 50% of all car insurance policies written. They all offer somewhat different options that shoppers can choose from. The data below ranks some of the different options that you can purchase from each one.