Best Cheap Car Insurance Companies for High-Risk Drivers in New Mexico

Because they are more likely to file claims, high-risk drivers pose a greater risk to insurers. As a high-risk driver, expect higher premiums when shopping rates. One way to save money is to take an inventory of high-risk auto insurance companies in New Mexico and compare the list of available rates. Further, changing your driving habits will lower your risk and make you more attractive to insurance companies.

That said, State Farm is the cheapest option for high-risk drivers in New Mexico, with an average annual premium of $1,121.

A high-risk driver is someone who has a history of major traffic violations. Usually, one ticket will not make a driver high-risk — multiple tickets and/or illegal actions like driving under the influence will. Distracted driving, such as texting while driving, and other reckless driving behavior will also categorize an individual as high-risk.

For high-risk drivers, insurance policies tend to be more costly and more difficult to obtain. In New Mexico, there is a 27% increase in insurance premiums for high-risk drivers. Drivers with clean records can get car insurance for roughly $1,116, while high-risk drivers start at $1,616, on average.

State Farm offers affordable car insurance for high-risk drivers in New Mexico, averaging $1,121 per year.

This provider has an excellent track record when it comes to complaints, financial stability and discounts, including those for students. If you need a breakdown, start with MoneyGeek’s State Farm review.

State Farm offers affordability and service quality, with high marks in other categories, such as stability, customer satisfaction and claim ratings. It received a MoneyGeek score of 97 out of 100.

Allstate is the second-best provider in this category, scoring 84 out of 100. It provides clients with innovative tools such as Drivewise, which helps users understand their driving behavior and practice safer driving. Learn more about the provider in our Allstate review.

State Farm offers the most affordable car insurance for high-risk drivers in New Mexico at roughly $1,121 per year. It has standard coverages such as liability, comprehensive and collision insurance. Additionally, it offers rideshare insurance.

If you are a military member or a family member of one, USAA is another affordable option. It offers discounts exclusively to military buyers.

State Farm offers teen buyers a relatively reasonable rate and more protection. Its average annual premium is steep compared to other categories, at $3,808.

However, students do get discounts which can help lessen the financial burden. Discounts may vary according to state, so head to their website for details regarding discounts in New Mexico.

Allstate offers the cheapest car insurance for drivers with bad credit at roughly $1,408 per year. It provides discounts to reward its clients for being loyal members and good drivers. Allstate insurance products may also be bundled for greater savings. Allstate’s average annual premium for the high-risk driver is approximately $346 more than a policy for the average safe driver.

Credit scores typically influence premiums, as exhibited by the 25% difference in rates for those with good and poor credit. Insurers look at credit scores to better analyze every client’s risk.

Many insurance companies consider a driver's history and profile when determining premiums. As a result, high-risk drivers tend to pay more. In New Mexico, high-risk drivers spend an average of $1,616, while low-risk drivers pay only about $1,116. That’s a $500 difference.

To get a better idea of what you can expect to pay for car insurance, use MoneyGeek's New Mexico car insurance calculator. The tool factors in personal details such as age, driving record and vehicle type to estimate car insurance rates. It also identifies which factors have the most impact on your rates.

Car insurance is a voluntary market, meaning providers can deny coverage to high-risk drivers. If your application is denied, you can look for a residual market plan through the Automobile Insurance Plan Service Office (AIPSO). AIPSO has provided services for almost 50 years to those in the auto insurance market, helping high-risk drivers obtain coverage.

AIPSO will help you find a residual market plan based on your location. In New Mexico, it’s called the New Mexico Motor Vehicle Insurance Plan, available to drivers having trouble finding coverage from private insurance companies.

New Mexico is one state that makes up the Western Association of Automobile Insurance Plans (WAAIP). This center connects individuals who have trouble accessing auto insurance with insurance companies that will insure them.

To help high-risk drivers obtain car insurance in New Mexico, MoneyGeek answered some frequently asked questions.

MoneyGeek calculated average rates using full coverage car insurance policies with 100/300/100 liability insurance and comprehensive and collision coverage with a $1,000 deductible. Minimum coverage car insurance policy rates were calculated based on each state’s minimum car insurance requirement.

To calculate rates for high-risk drivers, MoneyGeek averaged the premiums insurance companies charge for three of the most common driving violations: speeding, at-fault accident and DUI.

To determine the best car insurance company for high-risk drivers, MoneyGeek scored companies based on affordability, customer satisfaction and complaints — obtained from J.D. Power surveys and NAIC complaint scores — and financial strength ratings as calculated by AM Best. Affordability received the greatest weighting in our calculations.