The words “low-priced” and “insurance” really should not be used together, especially when you are searching for the best car insurance rates for inexperienced drivers. Because it’s not cheap, let’s introduce you to a few of the things that have an effect on car insurance rates, and find a way to lower the cost of the next policy you buy.
The make and model of vehicle you are insuring is one of the biggest factors in finding the best cheap insurance for inexperienced drivers. Vehicles with reasonable performance levels, good crash test ratings, or a positive history of liability claims will cost substantially less to insure than high performance models.
The information below estimates auto insurance premiums for a number of the most cost-effective automobiles to insure in New Mexico.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $1,373 |
| Hyundai Elantra SE Touring Station Wagon | $1,492 |
| Honda CR-V LX 4WD | $1,503 |
| Honda Accord EX 4-Dr Sedan | $1,511 |
| Ford F-150 STX Super Cab 4WD | $1,569 |
| Toyota RAV4 Limited 4WD | $1,627 |
| Chevrolet Equinox LS AWD | $1,635 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $1,682 |
| Toyota Prius | $1,722 |
| Ford Fusion SEL 4-Dr Sedan | $1,743 |
| Jeep Grand Cherokee Limited 2WD | $1,750 |
| Volkswagen Jetta SE 2.5 Station Wagon | $1,770 |
| GMC Sierra 3500HD SLE Regular Cab 2WD | $1,775 |
| Ford Edge SE AWD | $1,793 |
| Dodge Grand Caravan Crew | $1,817 |
| Chevrolet Impala LT | $1,833 |
| Chevrolet Silverado Crew Cab Hybrid 2WD | $1,839 |
| Compare Cheap Rates Go | |
Premium data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-policy, and multi-vehicle. Premium costs do not factor in specific zip code location which can increase or decrease premiums considerably.
Based upon these rates, you can conclude that makes and models like the Ford Escape, Hyundai Elantra, Honda CR-V, and Honda Accord should be some of the more affordable vehicles to insure for new drivers.
One of the many factors that help determine insurance cost is where you keep your vehicle. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with lower crime rates and fewer weather claims can boast about having cheaper rates.
The information below shows the most costly cities in New Mexico for inexperienced drivers in which to purchase auto insurance. Albuquerque is ranked at #1 with a yearly cost of $1,431 for the average insurance policy, which is approximately $119 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Albuquerque | $1,431 |
| 2 | Santa Fe | $1,356 |
| 3 | South Valley | $1,336 |
| 4 | Artesia | $1,317 |
| 5 | North Valley | $1,316 |
| 6 | Hobbs | $1,296 |
| 7 | Los Lunas | $1,289 |
| 8 | Los Alamos | $1,256 |
| 9 | Rio Rancho | $1,256 |
| 10 | Espanola | $1,223 |
| 11 | Lovington | $1,207 |
| 12 | Portales | $1,186 |
| 13 | Gallup | $1,176 |
| 14 | Roswell | $1,174 |
| 15 | Farmington | $1,172 |
| 16 | Carlsbad | $1,165 |
| 17 | Las Vegas | $1,160 |
| 18 | Clovis | $1,145 |
| 19 | Las Cruces | $1,131 |
| 20 | Deming | $1,109 |
| Compare Prices Now Go | ||
Rate quotes are approximated as the specific Albuquerque residence address can decrease or increase auto insurance rates greatly.
Finding reliable, affordable car insurance is not most people’s favorite thing to do, and deciding which company offers the cheapest car insurance rates for inexperienced drivers will take even more diligence. Each company has a proprietary method for determining rates in each state, so let’s begin by taking a look at the car insurance companies with the overall cheapest rates in Albuquerque.
Compare Cheap Insurance Quotes for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $657 |
| 2 | Allied | $920 |
| 3 | Safeco | $1,004 |
| 4 | Farm Bureau Mutual | $1,178 |
| 5 | State Farm | $1,297 |
| 6 | Farmers | $1,302 |
| 7 | The Hartford | $1,326 |
| 8 | Central Mutual | $1,328 |
| 9 | Travelers | $1,522 |
| 10 | Progressive | $1,535 |
| 11 | MetLife | $1,594 |
| 12 | California Casualty | $1,623 |
| 13 | GEICO | $1,624 |
| 14 | Encompass | $1,643 |
| 15 | Allstate | $2,314 |
| 16 | Liberty Mutual | $2,554 |
| 17 | Sentry | $3,114 |
| Find Your Rate Go | ||
USAA offers some of the best car insurance rates in Albuquerque at around $657 each year. This is $911 less than the average premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and State Farm would also make the list of some of the most economical Albuquerque, NM insurance companies.
As shown in the table above, if you are a customer of Farm Bureau Mutual and switched to Allied, you could see savings of approximately $258. Customers with State Farm may save as much as $377 a year, and Farmers customers might reduce rates by $382 a year.
To find cheaper insurance rates for your vehicle, click here or visit any of the companies below.
These premiums are averaged for all types of drivers and the different vehicles they drive and do not take into consideration a specific vehicle garaging location for inexperienced drivers. So the auto insurance company that can offer you the lowest price may not even be in the top 17 companies shown above. That underscores the importance of why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
The diagram below illustrates how your deductible choice can impact insurance rates when researching cheap insurance for inexperienced drivers. The premiums assume a single male driver, full physical damage coverage, and no discounts are applied to the premium.
A 50-year-old driver could reduce rates by $264 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $400 by changing to a $1,000 deductible. Youthful drivers, like the Age 20 chart data, can save up to $868 every year just by choosing larger deductibles.
When using a larger deductible, it will be necessary to have additional savings on hand to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Car insurance rates are higher with tickets and accidents
The obvious way to earn good car insurance premiums in New Mexico for new drivers is to drive safely and avoid accidents and violations. The chart below illustrates how violations and at-fault claims can affect insurance premiums for different ages of insureds. The data assumes a married male driver, comp and collision included, $500 deductibles, and no policy discounts are applied.
The data charted above shows the average cost of a car insurance policy in Albuquerque per year with a clean driving record and no accidents is $1,297. Get two speeding tickets and the average cost jumps to $1,784, an increase of $487 each year. Then throw in two accidents along with the two speeding tickets and the 12-month cost of car insurance for inexperienced drivers jumps again to an average of $3,684. That’s an increase of $2,387, or $199 per month, just for not driving responsibly!
Why you are probably overpaying for car insurance
Albuquerque car insurance rates are determined by lots of factors which can significantly increase or decrease the price you pay for coverage. Simply having a birthday, increasing liability limits, or getting a DUI can trigger price changes resulting in some rates now being affordable when they were higher priced.
Not only that, but car insurance companies modify rates every year in order to offset underwriting gains or losses. Significantly higher claims can result in price increases, while long-term profits can cause more affordable Albuquerque car insurance rates.
The chart below shows rates for the cheapest car insurance in Albuquerque, NM for a 45-year-old male driver with a clear driving record, no claims, and good financial standing. When quoting prices based on his personal profile, USAA might offer the most affordable car insurance rates in Albuquerque at $902 annually. This is $666 less than the average policy premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers are the remaining most affordable Albuquerque, NM auto insurance companies.
Let’s now give the driver from the first rate comparison a claim surcharge, less-than-perfect credit, and a stop sign violation. Since every car insurance company uses their own method for filing rates in each state, analyzing rate quotes could now result in a slightly different list of companies as shown below.
USAA now has the lowest price on auto insurance in Albuquerque, NM with State Farm, Allied, Central Mutual, and Safeco now being in the top five. This example illustrates why it is important to compare many different companies to find the most economical auto insurance rates for inexperienced drivers.
Insurance rates are influenced by many things and can change without notice, so the best option the last time you checked may now be quite expensive.
How to find economical auto insurance for inexperienced drivers
Here are many money-saving solutions that can help drivers get more affordable coverage.
- Buy a car with high safety ratings
- Pay for smaller claims out-of-pocket
- Remove physical damage coverage on older vehicles
- Home or renters coverage can save on auto insurance
- Pay lower rates with good credit
- Higher deductibles save money
- Shop around and save
The last tip in the list is very necessary, as was pointed out in this write-up. Prices charged by companies in Albuquerque can change considerably based on profitability, so don’t be tentative to buy from a different company if a cheaper rate is available.
Being loyal to a particular company is commendable, but it’s not a good idea if that stubbornness costs you lots of hard earned cash every month. It only take a few minutes to compare prices to find cheaper auto insurance for inexperienced drivers.