Cheapest Auto Insurance Quotes for Teenagers in New Mexico

You have probably watched the commercials from car insurance companies like State Farm, The General, and Progressive that say if you switch you’ll get the cheapest price, so drivers should just choose one randomly, right?

Regrettably, it’s not quite that easy, as there are a ton of unknown aspects like the annual mileage you drive, what deductibles you want to use, and if you have any tickets or accidents, that all impact the cost of coverage. The content below covers the best ways to avoid overpriced car insurance and hopefully give you enough understanding to have a solid foundation to find cheaper car insurance in New Mexico.

Finding good, low-cost auto insurance is not the easiest thing to accomplish, and finding out which companies have the cheapest auto insurance rates for teenagers may require a bit more work. Insurance rates will more than likely be much more than the average rate in New Mexico, with the extra cost attributed to the higher likelihood of claims that goes along with offering insurance for teen drivers, but economical coverage should be attainable if you are thorough. Every auto insurer has a proprietary formula for establishing rates, so let’s take a look at the auto insurance companies that tend to have lower prices in New Mexico.

Best Auto Insurance Prices for Teens

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USAA may offer some of the cheapest car insurance rates in New Mexico at around $657 each year. Allied, Safeco, Farm Bureau Mutual, and Farmers would also be considered some of the more affordable New Mexico insurance companies.

As the rates illustrate above, if you have coverage with Farmers and switched to Allied, you could see an annual premium reduction of in the vicinity of $333. Customers with The Hartford might save as much as $396 a year, and Central Mutual customers might cut rates by $398 a year.

Bear in mind that those estimates are averaged across all ages of drivers and types of vehicles and are not factoring in a rate increase for teenagers. So the company that can offer you the best price may not even be shown in the above list. That underscores the importance of why you need to compare as many prices as possible using your own driver and vehicle profiles.

One of the key considerations that is used by car insurance companies to determine insurance cost is where you keep your car in New Mexico. Areas with a lot of weather claims or more people like Albuquerque, Santa Fe, and Hobbs tend to pay more, whereas cities that are not as densely populated benefit from having to pay less for coverage.

The information below ranks the highest-priced places in New Mexico for teenagers to buy car insurance in.

Annual rates are approximated as the specific garaging location can affect insurance rates considerably.

The vehicle model needing coverage is probably the largest consideration when consumers are trying to find the cheapest car insurance for teenagers. Vehicles with average performance, a plethora of safety features, or low incidents of liability claims will cost quite a bit less to insure than fast, unsafe models. The tables below estimates car insurance costs for a number of the most cost-effective vehicles to insure in New Mexico.

Premium data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in zip code location which can change prices considerably.

Data based on single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in zip code location which can influence premiums considerably.

Cost estimates assume single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in garaging location in New Mexico which can affect rates significantly.

Irresponsible driving raises your rates

One of the best ways to find the cheapest auto insurance for teenagers in New Mexico is to drive carefully and not get tickets or have accidents. The diagram below illustrates how violations and at-fault accidents drive up car insurance costs for each age group. The premium estimates are based on a married female driver, full physical damage coverage, $500 deductibles, and no discounts are applied to the premium.

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The data charted above shows the average cost of auto insurance in New Mexico per year with no violations or accidents is $1,582. Add in two speeding tickets and the average cost increases to $2,246, an increase of $664 each year. Now throw in one accident along with the two speeding tickets and the yearly cost of auto insurance for teenagers goes up to an average of $2,917. That’s an increase of $1,335, or $111 per month, just for not being more responsible behind the wheel!

Difference between liability only and full coverage rates

Finding the cheapest auto insurance for teenagers in New Mexico is the goal of most people, and one way to pay less for insurance is to not pay for full coverage. The information below visualizes the comparison of insurance premiums when comparing full coverage to liability only. The rate quotes are based on a clean driving record, no claims, $1,000 deductibles, single marital status, and no discounts are applied to the premium.

google.charts.setOnLoadCallback(drawFclqcibChart);function drawFclqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Full Coverage with $1,000 Deductibles’, ‘Liability Only’],[‘Age 20’, 2497,977],[‘Age 30’, 1311,539],[‘Age 40’, 1285,501],[‘Age 50’, 1173,469],[‘Age 60’, 1137,461],[‘Age 70’, 1403,613]]);var options = {title: ‘Full Coverage Versus Liability Only’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 500,’chartArea’: {left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’},colors: [‘#6791b9′,’#98bee2’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle in New Mexico’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);var chart = new google.visualization.BarChart(document.getElementById(‘qcibfcl’));chart.draw(data, options);}

Averaged out for all age groups, full coverage costs an extra $1,468 per year over and above liability coverage. At some point, almost every driver questions if you should buy full coverage at all. There is no set guideline for dropping physical damage coverage, but there is a general convention. If the yearly cost of comp and collision coverage is more than 10% of any settlement you would receive from your insurance company, then it could be time to drop full coverage.

For example, let’s pretend your vehicle’s settlement value is $8,500 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most you would receive is $7,500 after you pay the deductible. If you are paying in excess of $750 annually for your policy with full coverage, then it’s probably a good time to buy liability coverage only.

There are some circumstances where eliminating full coverage is not financially feasible. If you still have a loan on your vehicle, you are required to maintain full coverage in order to keep the loan. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should not eliminate full coverage.

Who has the cheapest insurance quotes for teen drivers?

Thanks to the internet, there are a lot of ways to shop for and buy auto insurance in New Mexico, but the most frequently used methods are from an independent or non-exclusive agent, an exclusive agency such as Auto-Owners or State Farm, or from a direct company like Geico or Progressive. Each way has the same basic steps, but each is different in how they price policies.

Independent insurance agents work with multiple companies and can compare coverage rates with each one. These types of agencies can quote with many companies and compare multiple rates, which can give you a better comparison. If your agent finds better pricing, the business is moved internally which requires no work on your part.

Exclusive agencies are only able to place business with a single company, two examples are Allstate and Liberty Mutual agents. These guys and gals cannot provide rate quotes from other companies, which necessitates shopping around.

The final way is buying direct, which means you skip a local insurance agent and instead shop from a direct company like Geico. Buying auto insurance direct may be good for people who do not need high amounts of coverage and have some degree of understanding of what coverage options they need.

So out of those three methods, which one works best to find the cheapest auto insurance for teenagers in New Mexico? The quick answer would be buying direct saves the most money since that eliminates agent commissions, but that is generally not the case. An argument could also be made that an independent agency guarantees the lowest rates because you have more choices, but again, it’s not a sure thing. For the right applicant, exclusive agencies have coverage prices that other companies cannot beat.

Since auto insurance companies use so many rating factors, really the best method to not overpay for auto insurance is to do a thorough rate comparison. Smart shoppers will get rate quotes from independent agents, exclusive agents, and direct companies in order to have the best selection to choose from. For a list of auto insurance companies with low rates, click here to view.