The words “bargain” and “insurance” really don’t belong together, in particular when you are trying to find the best price on coverage for low mileage drivers. Let’s start the ball rolling by going over a few of the things that have an effect on insurance prices, and figure out some ways to lower the cost of your next policy.
One of the many criteria that are looked at to determine insurance cost is where you call home. Regions with larger populations or more claims are more likely to have higher rates, whereas areas with less people or fewer weather incidents tend to receive slightly lower rates.
The following table rates the priciest cities in New Mexico for low mileage drivers to purchase a policy in. Albuquerque shows up at #1 with an annual cost of $1,431 for the average policy, which is about $119 per month.
|Rank||City||Average Per Year|
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Premium costs are approximated as the specific garaging location can change auto insurance rates greatly.
The type of vehicle that is being insured is one of the primary factors when shopping around for economical coverage for low mileage drivers. Vehicles with high performance, poor crash test ratings, or a track record of large liability claims will cost quite a bit more to insure than safer, lower-performance models. The list below outlines coverage premiums for a number of the most affordable vehicles to insure.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$1,489|
|Honda CR-V LX 2WD||$1,598|
|Honda Accord EX 4-Dr Sedan||$1,605|
|Hyundai Elantra GLS Touring Station Wagon||$1,647|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,748|
|Honda Odyssey LX||$1,813|
|Chevrolet Equinox LTZ 2WD||$1,851|
|Dodge Grand Caravan SE||$1,857|
|Ford Explorer XLT 4WD||$1,864|
|Chevrolet Silverado LS Regular Cab 2WD||$1,881|
|GMC Sierra SLE Regular Cab 2WD||$1,887|
|Toyota RAV4 Sport 4WD||$1,892|
|Ford Focus S 4-Dr Sedan||$1,903|
|Ford Edge SEL AWD||$1,913|
|Ford F-150 XLT Crew Cab 4WD||$1,925|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$1,930|
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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 multi-vehicle, homeowner, multi-policy, claim-free, and safe-driver. Premium amounts do not factor in specific zip code location which can change coverage rates considerably.
Based upon the table data, you can assume that makes and models like the Ford Escape, Honda CR-V, Honda Accord, Toyota Prius, and Hyundai Elantra will be the most affordable vehicles to insure for infrequent drivers.
Illustration showing the impact of accidents and violations
The common sense way to get the best insurance premiums in Albuquerque for infrequent drivers is to drive safe and not have accidents or get tickets. The chart below demonstrates how speeding tickets and accidents raise premium costs for each age group. The information is based on a single male driver, comp and collision included, $100 deductibles, and no discounts are taken into consideration.
In the previous example, the average cost of auto insurance in New Mexico per year with no accidents or violations is $2,474. Add in two speeding tickets and the average cost swells to $3,287, an increase of $813 each year. Next add two accidents along with the two speeding tickets and the yearly cost of insurance for low mileage drivers increases to an average of $6,196. That’s an increase of $3,721, or $310 per month, just for not driving carefully!
The chart below shows how different deductible levels can increase or decrease insurance premiums when getting quotes for cheap insurance for low mileage drivers. The rate quotes are based on a single male driver, full physical damage coverage, and no discounts are applied to the premium.
A 40-year-old driver could lower their policy premium by $264 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $400 by choosing a $1,000 deductible. Young drivers, like the 20-year-old example, can cut $868 each year by selecting a higher deductible.
If you do raise deductibles, it will be important to have enough in a savings account to satisfy the extra out-of-pocket expense, which deters some people from using high deductibles.
You are probably paying too much for car insurance
Albuquerque insurance rates are calculated based on many things that will increase or decrease the price you have to pay. Turning one year older, getting married, or getting a driving violation may generate price changes that may make certain companies more affordable than the competition.
In addition to those changes, auto insurance companies change prices multiple times each year to help ensure profitability. Heavy losses can result in increased rates, while a profitable period may produce lower-cost Albuquerque car insurance rates.
As an example, the bar chart below compares the cheapest car insurance in Albuquerque, NM for a 40-year-old male driver with no accidents, a clean driving record, and a high credit rating. When quoting prices based on his current rating profile, USAA may have the most affordable car insurance rates in Albuquerque at $921 each year. This is $647 less than the average policy premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers also make the list of the most affordable Albuquerque, NM auto insurance companies.
The chart below compares rates after we give the driver from the above example a chargeable claim, slightly worse credit, and a speeding ticket. Since each company uses a different method for establishing rates, getting updated rate quotes may now result in a slightly different list of the cheapest car insurance companies in Albuquerque as shown below.
Allied now has the cheapest rate in Albuquerque, NM with USAA, State Farm, Central Mutual, and Safeco now being in the top five. This illustrates why it is critical to compare lots of rates when trying to find cheap insurance rates for low mileage drivers. Insurance rates are calculated by many things and can increase or decrease at any time, so the lowest-price company the last time you shopped around may now be quite expensive.
The agencies below are willing to help you determine which coverages and limits you need, since many consumers aren’t sure which coverage to buy and prefer to get some guidance when trying to find the best insurance rates for low mileage drivers. It’s not always easy to find coverage yourself, so using a licensed agent can provide you peace of mind knowing your coverage gives you sufficient coverage for your assets.
To find an auto insurance agency by location nearest to you, click the link after the list.
- State Farm: Nancy Berch
2716 San Pedro Dr NE – Albuquerque, NM 87110 – (505) 881-1008
- Phil Pettit – State Farm Insurance Agent
3507 Wyoming Blvd NE B – Albuquerque, NM 87111 – (505) 875-1300
- Lanell Anderson – State Farm Insurance Agent
5600 Menaul Blvd NE – Albuquerque, NM 87110 – (505) 881-0550
- GEICO Insurance Agent
5317 Menaul Boulevard Northeast – Albuquerque, NM 87110 – (505) 265-1600