Cheapest Car Insurance for Low-Income Drivers in New Mexico (October 2024)

Progressive offers the cheapest car insurance for individual drivers with low-income and poor credit at $39 per month. For families with low-income, State Farm provides the most affordable rate at $56 per month.

New Mexico does not offer state-backed car insurance programs for low-income families and individuals. Finding the provider with the most affordable rate and exploring discounts are options to manage the cost of car insurance.

While minimum coverage will help you drive legally, it has downsides. For example, it may not cover damages in an at-fault accident, leaving you responsible for significant out-of-pocket expenses.

Car insurance companies in New Mexico do not consider your income when calculating rates. Instead, they look at factors like age, driving record, credit history and the type of car you drive. At-fault accidents and moving violations will increase your rates. To find the cheapest rates, it's best to compare quotes from several insurance companies.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, if you rarely drive, pay-per-mile insurance could be the best option to save money. MoneyGeek found the cheapest insurers for low-income drivers in New Mexico to help you save.

To legally operate a vehicle in the Land of Enchantment, you're required to carry car insurance that adheres to the state's minimum car insurance requirements. Your policy must include the following coverage amounts:

• $25,000 for bodily injury liability per person.
• $50,000 for bodily injury liability per accident.
• $10,000 for property damage liability per accident.

Choosing the right car insurance policy is crucial. A liability-only car insurance is more affordable and covers damages to others if you're at fault in an accident, but it doesn't cover your own vehicle. To protect your car against various damages, including theft or natural disasters, consider a full coverage car insurance policy, which includes collision and comprehensive coverages.

For instance, if you reside in a region of New Mexico prone to hail storms, opting for full coverage can save you from the high costs of repairing hail damage. Understanding the risks and benefits of each coverage option ensures you select the right protection for your vehicle.

Credit history is crucial for low-income drivers in New Mexico as it can affect car insurance premiums. Poor credit records often signal higher risk to insurers, leading to increased premiums. This makes it essential for drivers to understand how their credit history influences their insurance rates. The cheapest car insurance companies for drivers with low-income and a low credit-based insurance score in New Mexico are:

• Progressive: $464 per year, $39 per month
• GEICO: $595 per year, $50 per month

Drivers with good insurance credit, you can get the cheapest car insurance in New Mexico from:

• Progressive: $357 per year, $30 per month
• State Farm: $394 per year, $33 per month

It's important to have state minimum coverage as driving without insurance is illegal. In New Mexico, driving without insurance is a misdemeanor and can lead to suspension of your driver’s license, vehicle registration and fines ranging from $175 to $1,000.

Car insurance premiums are influenced by various factors, but not directly by income. In New Mexico, single parents with a teen can expect to pay an average of $1,080 annually for minimum coverage auto insurance. In contrast, married couples with a teen enjoy a more affordable rate, typically around $676 per year, making a notable difference in yearly expenses.

The most affordable car insurance companies for married couples with a teen are:

• State Farm: $676 per year; $56 per month
• Allstate: $743 per year; $62 per month

For single parents with a teen, the cheapest options are:

• State Farm: $1,080 per year; $90 per month
• GEICO: $1,471 per year; $123 per month

Married couples with a teen can often secure lower rates due to insurers viewing them as lower risk compared to single parents. This difference in premiums highlights the importance of maintaining a solid credit score to access the most affordable car insurance options.

Car insurance premiums often decrease as you reach the early senior years between 55 and 65, especially with a spotless driving record. Based on state minimum liability rates, the two cheapest car insurance companies for seniors with low income and poor credit are:

• Progressive: $469 per year; $39 per month
• GEICO: $661 per year; $55 per month

Around age 70, insurance companies may start charging slightly more because they consider older drivers a higher risk. New Mexico doesn't have specific laws for senior car insurance, but we recommend checking for any updates or discounts that might help.

Your income doesn't directly affect car insurance rates in New Mexico. However, if a low income leads to a poor credit-based insurance score, it can result in higher rates. Conversely, a good credit score can help lower your rates. Understanding the factors that contribute to car insurance rates in New Mexico can help you make informed decisions in choosing the best car insurance for you.

You don't need a state-sponsored program to cut costs — finding affordable car insurance in New Mexico is possible with the right strategies. Here are some tips to lower your premiums:

Finding affordable car insurance in New Mexico can be tough for drivers with low incomes. Here are answers to some of your most common questions on how to save.