Best Cheap Car Insurance for High Risk Drivers in New Mexico

Determining which insurers offer the best car insurance rates for high risk drivers takes a little more work in order to find the most economical policy.

Every car insurance company has their own guidelines to determine rates, so let’s look at the rankings for the most budget-friendly car insurance companies in New Mexico. It’s a good idea to be aware that New Mexico car insurance rates are influenced by many factors that may substantially change the price of coverage. Improving your credit rating, moving across town, or getting a speeding ticket can trigger changes in premium resulting in some rates now being cheaper than competitors.

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USAA may offer some of the best car insurance rates in New Mexico at around $663 annually. Allied, Safeco, Farm Bureau Mutual, and State Farm also make the cut as some of the best New Mexico insurance companies.

As illustrated above, if you buy coverage from State Farm and switched to Allied, you may see annual savings of about $349. Insureds with Farmers may save as much as $354 a year, and The Hartford policyholders might reduce prices by as much as $378 a year.

To compare your rates to other New Mexico insurance companies, click here to start your free quote or visit any of the low-priced companies below.

Understand that those rates are averages across all insureds and vehicles and do not take into consideration a rate surcharge for high risk drivers. So the auto insurance company that fits your situation best may not even be included in the list of companies above. That affirms the importance of why you need to compare as many prices as possible using your own specific driver information and vehicle.

The vehicle model you are trying to insure is one of the main factors that determines whether or not you can buy economical insurance for high risk drivers. Vehicles with high performance features, poor safety features, or a high likelihood of having liability claims will cost substantially more to insure than more economical and safe models.

The list below illustrates car insurance costs for a number of the most economical automobiles to buy insurance for.

Prices above based on married female driver age 30, two speeding tickets, two at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include multi-vehicle, homeowner, and multi-policy. Premium costs do not factor in specific location information which can modify premiums greatly.

Looking at the data, models like the Ford Escape, Honda CR-V, and Honda Accord should be a few of the cheaper vehicles to insure for high risk drivers. Car insurance rates will be more costly because of the fact that there is more claim exposure for high risk drivers, but overall those specific models will probably have the lowest prices compared to all other vehicles.

The information below illustrates how your choice of deductibles can affect insurance costs when trying to find cheap insurance for high risk drivers. The premiums assume a married male driver, full physical damage coverage, and no discounts are taken into consideration.

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A 40-year-old driver could lower their car insurance rates by $312 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $472 by choosing a $1,000 deductible. Youthful drivers, like the 20-year-old category, could possibly save up to $1,046 every year by choosing a higher deductible.

When raising deductibles, it will now be necessary to have enough savings to enable you to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

How violations and accidents impact rates

The common sense way to score the cheapest car insurance rates in New Mexico for high risk drivers is to drive safe and avoid accidents and traffic violations. The illustration below illustrates how traffic citations and at-fault fender-benders can influence auto insurance rates for different age groups. The data is based on a married male driver, comp and collision included, $500 deductibles, and no other discounts are factored in.

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In the chart above, the average cost of an auto insurance policy in New Mexico per year with no accidents and a clean driving record is $1,297. Add in one speeding ticket and the average cost hikes up to $1,490, an increase of $193 each year. Then throw in two accidents along with the one speeding ticket and the yearly cost of car insurance for high risk drivers jumps again to an average of $3,228. That’s an increase of $1,931, or $161 per month, just for not paying attention while driving!

Who has the cheapest insurance quotes for high risk drivers?

There are many different ways to get cheap car insurance quotes in New Mexico, but the most prevalent are either through an independent or non-exclusive agent, an exclusive agency such as State Farm or Allstate, or direct either online or via phone. They all follow the same basic process, but shoppers should understand the differences in how they give price quotes.

Independent insurance agencies write business for many companies and can compare rates with every one. Independent agents can give you more rates, which may provide you with the best idea of how your rates compare. If a cheaper rate is found, your policy can be easily switched to a different company and you don’t have to switch agencies.

Exclusive agencies are usually restricted to just one company, two of the more popular are Allstate or Farmers Insurance agents. They usually cannot provide multiple price quotes, so you will not be able to compare other companys’ rates.

The third popular method of shopping for car insurance is direct, which means you skip local insurance agents and instead buy direct from companies such as Esurance or Geico. Buying direct may be a decent choice consumers who do not need complex risk management and know what coverage limits and deductibles they need.

So out of those three methods, which one works best to find the best cheap auto insurance for high risk drivers in New Mexico? We’d like to tell you buying from a direct company saves money since there is no need to pay agent commissions, but unfortunately, that is not always true. It would also be easy to say an independent agent is the best way to go because you have more choices, but that’s not always true, either. In many cases, exclusive agencies have really good rates that are the cheapest.

Because there are so many factors that make up car insurance rates, really the only way to buy the cheapest policy is to compare lots of quotes. Put in the effort to get price quotes from independent, exclusive, and direct to give yourself the best selection. We compiled a list of companies with some of the cheapest online rates that you can click here to view.

How to find economical insurance for high risk drivers

Here are a few thrifty suggestions that can help you quote cheap coverage.

• Improve your credit
• At-fault accidents can raise rates significantly
• Drive a car with a high safety rating
• Be a safe driver
• If possible, pay for small claims out-of-pocket
• Ensure you have the best deal by shopping around regularly

The last tip is very critical, as we noted in this piece. Insurance prices in New Mexico vary considerably, so don’t be unwilling to switch carriers if a lower price can be found. Sticking with a specific company is fine, but we do not recommend it if that stubbornness costs you big bucks every year. Take a couple minutes and compare rates to find cheaper car insurance for high risk drivers.