How Much are Albuquerque Auto Insurance Rates for Unemployed Drivers?

You have probably seen the ads from auto insurance companies like The General, State Farm, and Progressive that make promises of enormous savings. So drivers should just pick one randomly, right?

Regrettably, it’s not quite that easy, as there are many unknowns such as your gender, your age, the neighborhood you live in, and if you are a homeowner or renter. We know insurance is not everyone’s favorite topic, but in this article we will cover the things that influence insurance rates and will hopefully give you a good start in finding the cheapest car insurance in New Mexico.

For the unemployed, one of the big criteria that are looked at to determine the price you pay for insurance is where you live in Albuquerque. More populated areas tend to pay more, whereas areas that tend to be more rural have the gratification of cheaper auto insurance rates.

The following table lists the priciest cities in New Mexico for unemployed drivers to purchase a policy in. Albuquerque is ranked at #1 with an annual premium of $1,389 for the average policy, which is approximately $116 monthly.

How much is auto insurance in Albuquerque, NM?
Rank City Annual Premium
1 Albuquerque $1,389
2 South Valley $1,377
3 Artesia $1,317
4 Santa Fe $1,316
5 Los Lunas $1,302
6 Hobbs $1,296
7 Los Alamos $1,295
8 North Valley $1,290
9 Espanola $1,260
10 Rio Rancho $1,256
11 Carlsbad $1,213
12 Gallup $1,188
13 Roswell $1,186
14 Farmington $1,183
15 Lovington $1,171
16 Clovis $1,169
17 Deming $1,155
18 Portales $1,151
19 Las Vegas $1,149
20 Las Cruces $1,131
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Rate information is estimated as specific location information can decrease or increase prices considerably.

Determining which companies have the lowest-priced auto insurance rates for unemployed drivers requires a little more effort in order to find the best price. Each auto insurance company uses a slightly different approach for determining rates in each state, so let’s examine the auto insurance companies with the overall cheapest rates in New Mexico.

It’s important that readers know that New Mexico auto insurance rates are determined by lots of factors which can significantly increase or decrease the price you pay for coverage. Getting older, buying a new vehicle, or getting caught speeding can produce rate changes that can cause some rates to be cheaper than competitors.

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Cheapest insurance companies in New Mexico
Rank Company Cost Per Year
1 USAA $657
2 Allied $920
3 Safeco $984
4 Farm Bureau Mutual $1,166
5 Central Mutual $1,314
6 Farmers $1,315
7 The Hartford $1,326
8 State Farm $1,349
9 Travelers $1,522
10 Progressive $1,535
11 MetLife $1,626
12 California Casualty $1,639
13 GEICO $1,640
14 Encompass $1,694
15 Allstate $2,385
16 Liberty Mutual $2,554
17 Sentry $3,082
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USAA generally has some of the lowest car insurance rates in Albuquerque at around $657 each year. This is $911 less than the average price paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Central Mutual also make the cut as some of the cheapest Albuquerque, NM insurance companies.

As illustrated above, if you currently have coverage with Central Mutual and switched to Allied, you may realize an annual savings of upwards of $394. Drivers with Farmers may save as much as $395 a year, and The Hartford insureds might reduce rates by $406 a year.

These policy rates are averages for all insureds and vehicles and and are not figured with a specific zip code for unemployed drivers. So the car insurance company that can offer you the lowest price may not even be in the top 17 companies shown above. That is why you need to get rate quotes using your own driver data and vehicle information.

How accidents and tickets impact rates

The obvious way to obtain the best auto insurance premiums in New Mexico for the unemployed is to be a good driver and avoid at-fault accidents and violations. The information below illustrates how speeding tickets and at-fault accidents can affect insurance prices for each different age group. The premiums assume a single male driver, full coverage, $500 deductibles, and no discounts are applied.

In the example above, the average cost of an auto insurance policy per year with no accidents or violations is $2,059. Factor in two speeding tickets and the average cost swells to $2,723, an increase of $664 each year. Then throw in one accident along with the two speeding tickets and the annual cost of auto insurance for unemployed drivers goes up to an average of $3,395. That’s an increase of $1,336, or $111 per month, just for not driving safely!

Full coverage rates compared to liability only

Saving money on auto insurance is the goal of most drivers, and one easy way to buy cheaper insurance for unemployed drivers is to not buy comprehensive and collision coverage. The information below illustrates the comparison of annual premium costs with and without full coverage. The premiums are based on no driving violations, no at-fault accidents, $100 deductibles, drivers are single, and no additional discounts are factored in.

As an average, physical damage coverage costs an additional $2,518 per year over having just liability coverage. Many people question when is the right time to remove full coverage. There is no specific rule of when to phase out comprehensive and collision coverage on your policy, but there is a guideline you can consider. If the annual cost of coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to buy liability only.

There are some situations where only buying liability is not recommended. If you still owe a portion of the original loan, you have to keep full coverage to protect the lienholder’s interest. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is in an accident, you should not opt for liability only.

You are probably paying too much for car insurance

Albuquerque, NM auto insurance rates are calculated based on many things that control the policy premium. Simply improving your credit, buying a home instead of renting, or getting a reckless driving citation can trigger rate changes that may make certain companies cheaper than before. Not only may your situation change, but insurance companies change their prices without warning to adjust for heavy claims or excess profits. An unexpected high level of claims may cause additional premium costs, while less frequent claims may cause more affordable Albuquerque car insurance rates.

To help illustrate this point, the graph below demonstrates which company has the cheapest car insurance in Albuquerque, NM for a 30-year-old female driver with no accidents, a clean driving record, and a high credit rating. If we look at prices based on her current risk profile, USAA may offer the cheapest car insurance rates in Albuquerque at $876 each year. This is $692 less than the average rate paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and State Farm are also included in the cheapest Albuquerque, NM auto insurance companies.

In this example, we will give the driver from the first example a claim or two, less-than-perfect credit, and a stop sign violation. Due to the fact that each insurance company has their own guidelines to determine rates, comparing quotes may now present a slightly different list of the cheapest companies as shown below.

USAA now has the lowest price in Albuquerque, NM with The Hartford, Central Mutual, Allied, and Safeco completing the list. This example shows why consumers need to take the time to perform an extensive rate comparison to find cheap car insurance quotes for unemployed drivers. Insurance rates consist of many different factors and can decrease or increase without notice, so the cheapest rate three years ago may now cost much more than other companies.