Who Has the Cheapest Car Insurance for Young Drivers in New Mexico?

The words “low-cost” and “insurance” probably shouldn’t be used together, in particular when looking for the lowest insurance rates for young drivers. To save some money, let’s start the ball rolling by going over some situations that have an impact on auto insurance prices, and come up with some ideas to cut the cost of your next policy.

The vehicle model you are trying to insure is one of the primary factors when shopping for the cheapest car insurance for young drivers in New Mexico. Vehicles with limited speed and performance, an excellent safety record, or a track record of few liability claims will cost substantially less to insure than fast, unsafe models.

The next lists features insurance rates for a number of the most cost-effective vehicles to buy insurance for.

Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include claim-free, and safe-driver. Table data does not factor in specific garaging location which can increase or decrease rates significantly.

Data variables include single male 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 costs do not factor in New Mexico location which can alter price quotes significantly.

Data based on single male 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. Table data does not factor in vehicle garaging location which can affect rates considerably.

Shopping around for cost effective insurance is not the easiest thing to accomplish, and figuring out which company quotes the most affordable auto insurance rates for young drivers calls for a bit more work. Premiums should be quite a bit pricier than the state average attributed to the potentially higher risk related to selling coverage for youthful drivers, but economical coverage should be obtainable if you look hard enough. Every insurance provider uses their own formula for determining rates in each state, so first let’s look at the rankings for the auto insurance companies with the most affordable rates in New Mexico.

Keep in mind that New Mexico auto insurance rates are influenced by many factors which can substantially change the price you pay. Simply improving your credit, moving across town, or getting caught speeding can trigger changes in premium that can make some companies more expensive than competitors.

Best Cheap Insurance Rates for Teens

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USAA generally has some of the best car insurance rates in New Mexico at around $663 annually. Allied, Safeco, Farm Bureau Mutual, and Farmers also rank well as some of the cheapest New Mexico insurance companies.

In this example, if you are a customer of Farm Bureau Mutual and switched to Allied, you might achieve an annual premium reduction of around $236. Customers with Farmers might save as much as $372 a year, and Central Mutual customers might lower prices by up to $384 a year.

It’s important to note that these premiums are averages for all types of insureds and vehicles and do not take into consideration a rate surcharge for young drivers. So the car insurance company that is best suited for you may not even be shown in the list of companies above. That underscores the importance of why you need to get rate quotes from many companies using your own driver and vehicle profiles.

One of the more important things that is looked at to determine the amount you pay for auto insurance is the neighborhood you call home in New Mexico. Areas with high crime rates or more dense population like Albuquerque, South Valley, and North Valley tend to pay slightly more, whereas less populated areas benefit from lower coverage costs.

The following table sorts the priciest cities in New Mexico for young drivers to buy an auto insurance policy in.

Rate information is comparative as the specific zip code location can decrease or increase auto insurance rates greatly.

The diagram below demonstrates how deductible levels can impact yearly insurance costs when getting quotes for cheap insurance for young drivers. The rate quotes are based on a single female driver, full physical damage coverage, and no additional discounts are factored in.

In the chart above, a 30-year-old driver could lower rates by $394 a year by changing from a $100 deductible up to a $500 deductible, or save $594 by switching to a $1,000 deductible. Youthful drivers, like the Age 20 category, could save $884 every year by choosing larger deductibles on their policy. If you do raise deductibles, it is essential 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.

Full coverage versus liability-only

Finding the cheapest car insurance for young drivers in New Mexico is probably important to the majority of people, and one of the fastest ways to lower the cost of insurance is to not buy comprehensive and collision coverage. The example below shows the comparison of insurance costs when comparing full coverage to liability only. The rate quotes are based on no violations or accidents, $500 deductibles, single status, and no discounts are taken into consideration.

As an overall average, physical damage coverage costs an extra $1,521 per year over having just liability coverage. That may make you wonder if it’s worth it to buy full coverage. There isn’t a written rule that works best for making the decision to drop full coverage, but there is a guideline you can consider. If the yearly cost of full coverage is 10% or more of the vehicle’s replacement cost less your deductible, then it’s probably a good time to buy liability coverage only.

There are some cases where dropping physical damage coverage is not recommended. If you have an outstanding loan on your vehicle, you are required to maintain full coverage in order to satisfy the requirements of the loan. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should not consider dropping full coverage.

Does Progressive, State Farm, Allstate, or Geico have the cheapest car insurance?

When comparing car insurance, four good companies to start with are Progressive, State Farm, Allstate, and Geico. The next table compares some of the different options you can buy with each company.