How Much Does Auto Insurance Cost for High Mileage Drivers in New Mexico?

You have probably watched the commercials from insurers like Allstate and Farmers claiming the cheapest rates. So drivers should just choose one randomly, right?

Regrettably, it’s not quite that easy, as there are a whole bunch of unknowns such as the deductible level you need, if you are wanting full coverage, and whether you are a woman or a man, that all go into determining the rate you pay. We will touch on the best ways to avoid paying too much and will give you a good start in finding the cheapest insurance in New Mexico.

Finding out which company offers the lowest-priced car insurance rates for high mileage drivers will involve a bit more work in order to find the best policy.

Every auto insurer uses different criteria for establishing rates, so we’ll take a look at the most budget-friendly car insurance companies in New Mexico.

Best Cheap Insurance Rates in New Mexico

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USAA normally has some of the cheapest car insurance rates in New Mexico at around $683 a year. Allied, Safeco, Farm Bureau Mutual, and Farmers also qualify as some of the more affordable New Mexico insurance companies.

In the above rates, if you are a policyholder with Farmers and switched to Allied, you might realize a yearly savings of in the neighborhood of $305. Customers with State Farm could save as much as $352 a year, and The Hartford customers might lower prices by up to $368 a year.

Be aware that those policy rates are averages for all drivers and vehicles and do not factor in a rate discount for high mileage drivers. So the auto insurance company that has the cheapest price for you may not even be included in the above rate chart. That illustrates why you need to compare prices as often as possible using your own individual information.

The type of vehicle on the policy is probably the most important factor when consumers are trying to find cheap auto insurance for high mileage drivers in New Mexico. Vehicles with limited speed and performance, good crash test ratings, or low incidents of liability claims will cost substantially less to insure than high performance models. The information below presents coverage rates for a handful of the most cost-effective vehicles to insure in New Mexico.

Table data represents single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include multi-policy, claim-free, homeowner, safe-driver, and multi-vehicle. Rate information does not factor in your specific New Mexico location which can increase or decrease price quotes significantly.

Based upon these rates, vehicles like the Honda Accord, Hyundai Elantra, and Toyota Prius are likely to be the cheaper vehicles to insure for high mileage drivers.

Comparison of full coverage and liability-only policies

Finding cheap auto insurance for high mileage drivers in New Mexico is important to most vehicle owners, and an easy way to pay less for insurance is to not pay for full coverage. The information below shows the comparison of auto insurance rates with and without full coverage. The data is based on no claims or driving violations, $250 deductibles, marital status is single, and no discounts are taken into consideration.

On average, full coverage costs an additional $1,695 per year more than carrying just liability coverage. That is a large expense which might make you wonder if buying full coverage is worth the expense. There isn’t a steadfast formula for phasing out physical damage coverage, but there is a general convention. If the annual cost of comprehensive and collision coverage is 10% or more of the replacement cost minus the deductible, then it might be time to buy liability only.

For example, let’s pretend your vehicle’s replacement cost is $7,500 and you have $1,000 deductibles. If your vehicle is severely damaged, the most you would receive is $6,500 after you pay the deductible. If you are currently paying more than $650 a year for physical damage coverage, the it may be a good time to stop paying for full coverage.

There are some circumstances where eliminating full coverage is not advised. If you still owe a portion of the original loan, you have to carry full coverage to protect the lienholder’s interest in the vehicle. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should keep full coverage in place.

Tips to find the cheapest car insurance for high mileage drivers

The list below details some of the recommended thrifty ideas that can help drivers get the cheapest auto insurance.

• Avoid accidents
• Save money by staying claim-free
• Be a cautious driver
• Drop full coverage on older vehicles
• Increase physical damage deductibles
• Check for cheaper rates once a year

The last tip is certainly important, as we discussed in this write-up. Prices charged by auto insurers in New Mexico can be adjusted at any time, so don’t hesitate to buy a policy from a new company if you find a better deal.

Having a favorite company is fine, but it’s not recommended if that devotedness results in you overpaying lots of hard earned cash every month. In just a couple of minutes you could compare rates and find cheaper auto insurance for high mileage drivers.

Who has the cheapest insurance quotes for high mileage drivers?

There are quite a few ways to compare cheaper car insurance rates in New Mexico, but the three most common ways are using an exclusive agency such as Auto-Owners or State Farm, an independent insurance agent, or direct either online or via phone. All three ways are similar, but they differ in how they function.

Independent insurance agencies have contracts with many companies and can do rate comparisons with all of them. They have the freedom to give you a larger rate selection, which can give you improved chances of finding a lower rate. If cheaper coverage is found, they can switch companies in-house which makes it simple for you.

An exlusive, or captive, agency is only able to give prices for just one company, two popular examples being State Farm and Auto-Owners agents. These agents are unable to shop your coverage around, so they have no alternatives for high prices.

If you buy direct, you forego an agent and buy direct either online or via phone. Buying direct may be the best choice consumers who do not need high levels of coverage and have a decent understanding of what limits they need.

So what is the best way to buy cheap auto insurance for high mileage drivers in New Mexico? The majority of people assume that buying from a direct company results in the cheapest price because there is no agent taking a commission, but unfortunately, it’s not that cut and dried. We’d also like to say going through an independent agent guarantees the lowest rates since they have access to many companies, but again, that’s not a true statement. In a lot of cases, exclusive agents may have very competitive prices that cannot be beaten by either independent or direct companies.

Because it’s impossible to say who has the best car insurance rates, the guaranteed way to make sure you’re not overpaying for car insurance is to get rate quotes and compare. To find the best rates, be sure to get price quotes from all three to give yourself plenty of rates to compare. For a list of companies with online discounts, click here to view.