Auto insurance in New Mexico does not come cheap, with New Mexico ranking 25th on the list of the most expensive states to buy auto insurance. As of December 2013, the average annual insurance premium rate paid by the state of New Mexico is $1431. This is high if you compare it to the average insurance rates of states such as Maine or Idaho, but much lower than that of Louisiana, Michigan or Georgia.
New Mexico is one of the nine states where it is mandated for insurers to offer you a discount on your premium if you install an anti-theft device in your car. You can save between $214 and $286 if you opt for a passive anti-theft device. You could combine this with a vehicle recovery system to increase your discount.
One of the most important factors that affect your insurance premiums is your driving record. If you have been convicted for an alcohol-related driving offense in the past three years, insurance companies are likely to charge you a much higher premium. In the state of New Mexico, for example, the first time you are caught driving drunk your premium will increase from an average of $1,431 up to $2,662. You could try to lower your premium by taking a defensive driving course, after which your premium could be lowered to $2,263.
Since the average insurance rates differ from zip code to zip code within New Mexico, the premium hikes hit you in some areas more than others. The average annual premium is as high as $1,291 in the city of Albuquerque, while it is only $952 in Alamogordo.
In Santa Fe, a single accident during the term of your insurance policy can increase your premium up to $1416 and in Albuquerque up to $1590. A subsequent accident is bound to take a heavy toll on your premium, with an increase up to $2113 in Santa Fe and $2372 in Albuquerque.
In the present economic climate, auto insurance premiums are on the rise across the states. With each alcohol related offense, your insurance company hikes your premium. This is an easily avoidable expense. You could save yourself from long term financial losses by keeping your driving record clean.