The words “economical” and “insurance” probably shouldn’t be used in the same sentence, in particular when you are looking for the lowest insurance rates for 16 year olds. In an attempt to save some money, let’s familiarize you with a few of the things that significantly impact insurance rates, and see if you can lower the price of the next policy you buy.
For new drivers, one of the more important factors that are looked at to help calculate car insurance rates is where you keep your vehicle. Areas with increased crime or more people are more likely to have higher rates, whereas more rural areas benefit from lower prices.
The following table rates the most expensive places in New Mexico for 16 year olds to purchase car insurance in. Albuquerque shows up at #1 with an annual cost of $1,417 for car insurance, which is about $118 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Albuquerque | $1,417 |
| 2 | South Valley | $1,377 |
| 3 | Santa Fe | $1,356 |
| 4 | North Valley | $1,329 |
| 5 | Los Alamos | $1,295 |
| 6 | Rio Rancho | $1,282 |
| 7 | Artesia | $1,278 |
| 8 | Espanola | $1,273 |
| 9 | Los Lunas | $1,263 |
| 10 | Hobbs | $1,258 |
| 11 | Lovington | $1,195 |
| 12 | Gallup | $1,188 |
| 13 | Farmington | $1,183 |
| 14 | Roswell | $1,174 |
| 15 | Clovis | $1,169 |
| 16 | Carlsbad | $1,165 |
| 17 | Portales | $1,151 |
| 18 | Las Vegas | $1,149 |
| 19 | Deming | $1,121 |
| 20 | Chaparral | $1,114 |
| 21 | Sunland Park | $1,098 |
| 22 | Las Cruces | $1,098 |
| 23 | Silver City | $1,085 |
| 24 | Anthony | $1,065 |
| 25 | Alamogordo | $1,063 |
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Annual rates are comparative as the garaging address in Albuquerque can alter coverage prices substantially.
Finding out which company offers the cheapest car insurance rates for 16 year olds will take more work in order to find the most economical policy.
Each auto insurer uses a slightly different approach for determining prices, so let’s take a look at the car insurance companies with the overall best prices in Albuquerque, NM. It’s important to know that New Mexico car insurance rates are based on many factors which can significantly increase or decrease the price you pay. Simply improving your credit, increasing liability limits, or getting caught speeding may prompt premium changes resulting in some rates now being cheaper than competitors.
Find the Cheapest Car Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $683 |
| 2 | Allied | $958 |
| 3 | Safeco | $1,004 |
| 4 | Farm Bureau Mutual | $1,166 |
| 5 | Farmers | $1,302 |
| 6 | State Farm | $1,336 |
| 7 | The Hartford | $1,352 |
| 8 | Central Mutual | $1,368 |
| 9 | Travelers | $1,522 |
| 10 | Progressive | $1,550 |
| 11 | MetLife | $1,578 |
| 12 | California Casualty | $1,623 |
| 13 | GEICO | $1,640 |
| 14 | Encompass | $1,711 |
| 15 | Allstate | $2,408 |
| 16 | Liberty Mutual | $2,529 |
| 17 | Sentry | $3,082 |
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USAA has some of the best car insurance rates in Albuquerque at around $683 annually. This is $885 less than the average premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers also qualify as some of the cheaper Albuquerque, NM insurance companies.
As shown above, if you are a customer of Farm Bureau Mutual and switched to USAA, you might achieve savings of in the vicinity of $483. Insureds with Farmers could save as much as $619 a year, and State Farm insureds might cut rates by $653 a year.
These premiums are averages across all drivers and vehicles and do not factor in a specific vehicle garaging location for 16 year olds. So the insurer that is best for you may not even be in the top 17 companies in the list above. That helps illustrate why you need to get car insurance quotes using your own individual information.
Reckless driving habits raise Albuquerque car insurance rates
The ideal way to maintain good car insurance premiums in Albuquerque for new drivers is to be a careful driver and avoid tickets and accidents. The chart below illustrates how violations and accident claims can increase car insurance rates for different categories of driver ages. The premiums are based on a married male driver, full physical damage coverage, $500 deductibles, and no other discounts are factored in.
In the example above, the average cost of a car insurance policy in New Mexico per year with no violations or accidents is $1,297. Factor in two speeding tickets and the average cost increases to $1,784, an increase of $487 each year. Then throw in one accident along with the two speeding tickets and the yearly cost of car insurance for 16 year olds increases to an average of $2,273. That’s an increase of $976, or $81 per month, just for not driving carefully!
How to get discounts on Albuquerque auto insurance rates
Insurers that offer coverage for 16 year olds may additionally offer premium discounts that could reduce prices by as much as 40% or more if you meet certain criteria. A few popular companies and a summarized list of policyholder discounts are outlined below.
- Farm Bureau policyholders can earn discounts including driver training, youthful driver, multi-vehicle, safe driver, multi-policy, 55 and retired, and renewal discount.
- Liberty Mutual has discounts for teen driver discount, hybrid vehicle, multi-policy, new graduate, and multi-car.
- State Farm offers discounts including safe vehicle, Drive Safe & Save, Steer Clear safe driver discount, good driver, defensive driving training, and multiple autos.
- Auto-Owners Insurance has savings for air bags, multiple vehicles, safe driver, anti-lock brakes, good student, company car, and anti-theft.
- GEICO may offer discounts for daytime running lights, membership and employees, five-year accident-free, military active duty, and seat belt use.
- SAFECO offers discounts for accident prevention training, homeowner, drive less, teen safe driver, and anti-lock brakes.
The information below illustrates the difference between car insurance rates with and without policy discounts. The premiums assume a female driver, no accidents or driving violations, New Mexico state minimum liability limits, full coverage, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with passive restraint, continuous coverage, good student, paid-in-full, vehicle safety, and paperless filing discounts applied. When discounts are factored in, theamount saved on car insurance for 16 year olds is 28% or $469.
Chances are good that you’re overpaying for Albuquerque car insurance
Albuquerque, NM car insurance rates are influenced by many factors that control the cost of having a policy. Turning one year older, moving to a new city, or getting a speeding ticket can trigger changes in premium that may make certain companies much cheaper than others. And not only may your rating factors change, but insurance companies amend premium rates multiple times each year in order to protect their financial rating. An unexpected high level of claims may cause increased rates, while a profitable period can cause cheaper Albuquerque car insurance rates.
To illustrate this point, the bar chart below compares the cheapest car insurance in Albuquerque, NM for a 40-year-old female driver with no prior accidents, a clean driving record, and a decent credit rating. If we estimate rates based on her current risk profile, USAA quotes the most affordable car insurance rates in Albuquerque at $884 per year. This is $684 less than the average premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers also make the list of the top five cheapest Albuquerque, NM auto insurance companies.
In the next rate comparison, we’ll give the driver in the first example an at-fault accident, slightly worse credit, and a speeding ticket. Due to the fact that each insurance company has their own unique process for filing rates in each state, getting updated rate quotes may now result in a different ranking of affordable companies as shown below.
USAA now has the best price on car insurance in Albuquerque, NM with Allied, The Hartford, Central Mutual, and Safeco now being in the top five. This example proves why Albuquerque drivers need to compare as many rates as possible to find the most budget-friendly auto insurance rates for 16 year olds. Prices are made up of many risk factors and can decrease or increase without notice, so the cheapest option two years ago may now be an over-priced policy.