Car insurance in New Mexico
Drivers in New Mexico paid $1,301 a year for full coverage in 2023, 10% below the national average. With prices up since, figure on about $1,540 today. In New Mexico, the law asks for at least 25/50/10 liability.
What people pay in New Mexico
A typical yearly price today
about $1,540 a year (about $130 a month)
New Mexico's average full-coverage cost in 2023 was $1,301, according to the National Association of Insurance Commissioners (NAIC). Car insurance prices nationally have risen about 18% since then (government price index, August 2026), so we start from about $1,540.
That makes New Mexico the 22nd most expensive of the 50 states and DC. Nationally, the average was $1,439.
It's an average across every kind of driver and car, not your price. Your car, your driving record, and how much coverage you carry move it up or down.
New Mexico next to its neighbors
A typical policy costs less in New Mexico than in all four of its neighbors.
| State | Typical price, 2023 | Moving to New Mexico from there |
|---|---|---|
| New Mexico | $1,301 | Not a move |
| Arizona | $1,505 | About $280 less a year |
| Colorado | $1,655 | About $480 less a year |
| Oklahoma | $1,324 | About the same |
| Texas | $1,727 | About $580 less a year |
| National average | $1,439 | Not a move |
The move is the What-if page's starting example: a 40–64-year-old with a clean record and a 2020 Toyota Camry, full coverage, in the suburbs, with nothing else changed. Only the two states' typical prices make the difference, so a real move can come out differently.
The least insurance New Mexico's law asks for
- Liability (per person / per crash / property)
- $25,000 / $50,000 / $10,000
- Personal injury protection (PIP)
- Not required
- Medical payments
- Not required
- No-fault
- No
- Uninsured motorist
- Included unless you decline in writing
- Underinsured motorist
- Included unless you decline in writing
Liability pays for injuries and damage you cause to others, up to these limits. A minimum is the least the law allows, not a recommendation, and it doesn't pay to fix your own car.
Liability-only coverage, the closest NAIC figure to what a minimum policy costs, averaged $624 in New Mexico in 2023 (about $740 today, brought up the same rough way), the 26th lowest of the 50 states and DC. That's about 48% of the full-coverage price; the rest pays to fix or replace your own car.
New Mexico requires at least $25,000 per person and $50,000 per crash for injuries, plus $10,000 for property damage. Uninsured-motorist coverage, which also covers underinsured drivers, is included unless you turn it down in writing.
What we couldn’t confirm: We couldn't load the official New Mexico statutes. The limits come from Motor Vehicle Division pages that quote the law, and the uninsured motorist wording comes from current-law text reprinted in a 2025 bill (which failed). We didn't read the uninsured motorist minimums in the law itself.
- Uninsured and underinsured motorist
- Uninsured motorist coverage, which by law also covers underinsured drivers, must be at least $25,000/$50,000 for injuries and $10,000 for property damage (up to $250 of property damage may be excluded). You can buy more, up to your liability limits. You can turn it down, but only in writing, and the rejection becomes part of the policy.
- Checked
- September 22, 2026
A new teen driver in New Mexico
Adding a 16-year-old to a typical policy
about $1,020 more a year
About $85 a month, on one average car with full coverage. The whole policy with the teen: roughly $1,900–$3,400 a year.
On a policy of their own, with the same kind of car, the same teen would pay about $4,420 a year in New Mexico (roughly $3,350–$6,300).
What adding a teen costs comes from California's published prices, so the range is wide, and New Mexico may differ. How adding a teen driver works.
Cars that cost the least to add a teen with
In New Mexico, the 2022 Subaru Forester, Outback, and Crosstrek come out the same, the least of the 33 cars on the site's popular lists to add a teen with: about $910 more a year. At the other end of the same lists, the 2022 Tesla Model 3 costs about $1,530 more a year.
| Car | Added to your policy | On their own policy |
|---|---|---|
| 2022 Subaru Forester | +$910 a year | $3,950 a year |
| 2022 Subaru Outback | +$910 a year | $3,960 a year |
| 2022 Subaru Crosstrek | +$910 a year | $3,970 a year |
| 2022 Honda CR-V | +$980 a year | $4,250 a year |
| 2022 Toyota RAV4 | +$990 a year | $4,320 a year |
The order is the same in every state, because our car data is national. What changes from state to state is the price level.
Why these cars cost less, and what this doesn't cover.
“Try it with your own car” opens your own situation in New Mexico (a 2020 Toyota Camry if you haven't set one) with a new 16-year-old. It starts from that car, not an average one, so its figure can differ from the one above.
Where these numbers come from
- Typical prices: National Association of Insurance Commissioners (NAIC), 2022/2023 Auto Insurance Database Report, 2023 data, brought up to today with the government's price index for car insurance.
- The law: New Mexico's own statute or insurance department, listed above with the date we checked it.
- Teen drivers and cars: the same math as the rest of the site. Here's how we got these, and every source.
This is an estimate to help you plan, not a quote. We don't sell insurance, and we never pass your info to anyone. Only an insurer can give you a real price.