The words “affordable” and “insurance” really should not be used together, in particular when you are looking for the cheapest car insurance for first-time drivers. To help control this cost, let’s lead off by showing you some of the factors the can have a considerable influence on car insurance rates, and see if you can slash the price of the next policy you buy.
For new drivers, one of the big things that aid in calculating the amount you pay for auto insurance is your address in Albuquerque. Areas with a lot of weather claims or more people are more likely to pay higher prices, whereas areas with less congestion benefit from lower prices.
The information below rates the priciest cities in New Mexico for first-time drivers in which to purchase auto insurance. Albuquerque is ranked #1 with an annual rate of $1,417 for the average insured, which is approximately $118 each month.
|Rank||City||Premium Per Year|
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Premium costs are comparative as the specific geographic location can alter rates noticeably.
The type of vehicle to be insured is probably the largest consideration when trying to find the best cheap car insurance for first-time drivers. Vehicles with high performance features, a lack of modern safety features, or a history of substantial liability claims will cost substantially more to insure than more modest models. The next list features insurance costs for the most cost-effective automobiles to insure in New Mexico.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord LX-P 4-Dr Sedan||$5,527|
|Ford Escape XLS 4WD||$5,533|
|Hyundai Elantra GLS Touring Station Wagon||$5,527|
|Honda CR-V EX-L 4WD||$5,585|
|Dodge Grand Caravan CV||$6,194|
|Ford Explorer XLT 2WD||$6,199|
|Ford F-150 XLT Super Cab 4WD||$6,252|
|Ford Fusion S 4-Dr Sedan||$6,556|
|Toyota RAV4 Limited 2WD||$6,565|
|Jeep Grand Cherokee Laredo 2WD||$6,556|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$6,799|
|Ford Focus SES 4-Dr Sedan||$6,859|
|Honda Odyssey EX-L W/Navigation||$6,917|
|Toyota Tacoma X-Runner 2WD||$6,926|
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Table data represents single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include claim-free, and safe-driver. Table data does not factor in specific location which can lower or raise insurance rates significantly.
Looking at the rates, we can expect models like the Honda Accord, Ford Escape, Hyundai Elantra, Honda CR-V, and Toyota Prius are most likely going to be a few of the more affordable vehicles to insure for new drivers. Prices will be more costly because there is a higher risk for first-time drivers, but in general those specific models will most likely have the best insurance prices possible.
Liability-only versus full coverage
Paying less for insurance is the goal of the majority of drivers, and one of the fastest ways to lower the cost of insurance for first-time drivers is to not pay for full coverage. The illustration below illustrates the difference between insurance prices with full physical damage coverage compared to only buying the minimum liability limits required in New Mexico. The costs are based on no driving violations, no at-fault accidents, $100 deductibles, single marital status, and no discounts are applied to the premium.
As an overall average, physical damage coverage costs $2,058 per year over and above liability only. At some point, almost every driver questions if buying full coverage is a good investment. There is no exact rule for dropping physical damage coverage on your policy, but there is a general convention. If the yearly cost of comp and collision coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, then you may need to consider dropping full coverage.
How to get discounts on Albuquerque auto insurance rates
Car insurance companies that offer coverage for first-time drivers could also offer special discounts that could potentially reduce rates by as much as 35% or more if you meet certain criteria. The best insurance companies and their offered discounts are outlined below.
- GEICO may offer discounts for defensive driver, seat belt use, good student, anti-theft, emergency military deployment, and daytime running lights.
- Auto-Owners Insurance may have discounts that include air bags, anti-lock brakes, mature driver, multi-policy, and paperless.
- American Family includes discounts for bundled insurance, accident-free, defensive driver, early bird, and mySafetyValet.
- Esurance offers discounts including defensive driver, good student, homeowner, online shopper, anti-theft, and Switch & Save.
- Progressive has discounts for multi-vehicle, online quote discount, continuous coverage, homeowner, and good student.
- State Farm offers discounts for good student, accident-free, defensive driving training, student away at school, passive restraint, and Drive Safe & Save.
- AAA may include discounts for multi-policy, pay-in-full, education and occupation, anti-theft, good driver, and AAA membership discount.
The example below shows the difference between car insurance rates with and without discounts applied to the policy rates. The costs are based on a female driver, no claims or violations, New Mexico state minimum liability limits, comp and collision included, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with vehicle safety, passive restraint, anti-theft, paid-in-full, good student, and paperless filing discounts applied. When these discounts are applied, theaverage amount saved on insurance for first-time drivers is 28% or $457.
Drive responsibly or pay higher rates
The easiest way to receive cheap insurance rates in New Mexico for new drivers is to drive cautiously and avoid at-fault accidents and violations. The information below illustrates how violations and accidents drive up insurance costs for each age group. The premiums assume a single male driver, comp and collision included, $500 deductibles, and no additional discounts are factored in.
In the previous example, the average cost of a car insurance policy in New Mexico per year with no accidents or violations is $1,521. Get one speeding ticket and the average cost hikes up to $1,714, an increase of $193 each year. Now throw in one accident along with the one speeding ticket and the 12-month cost of insurance for first-time drivers goes up to an average of $2,251. That’s an increase of $729, or $61 per month, just for not being attentive to the road!
How to find economical car insurance for first-time drivers
The list below details some money-saving solutions that can help you buy low-cost car insurance.
- Increase the comprehensive and collision deductibles on your policy
- Frequent claims will increase rates
- Safer vehicles cost less to insure
- Improve your credit rating
- Don’t waste money on full coverage for older vehicles
- Buy your homeowners policy from the same company as your auto insurance
- Shop around and save
The last item on the list is certainly valuable, as we discussed in the article above. Insurance rates in Albuquerque can change in a short period of time, so don’t hesitate to switch companies if you find a better deal.
Staying with the same company for years is fine, but it isn’t a good idea if that loyalty ends up costing a small fortune. Now is a great time to shop around and find cheaper auto insurance for first-time drivers.
If you prefer to get help from a professional when comparing insurance rates for first-time drivers, the agents shown below are willing to provide answers to your questions and help you determine which auto insurance policy would work best for you. To locate an Albuquerque insurance agent nearest to you, click the button following the list or click here to compare price quotes now.
Judy Alba – State Farm Insurance Agent
2920 Carlisle NE, Bldg B – Albuquerque, NM 87110 – (505) 884-5121
GEICO Insurance Agent
5317 Menaul Boulevard Northeast – Albuquerque, NM 87110 – (505) 265-1600
Greg Shamas – State Farm Insurance Agent
9680 Eagle Ranch Rd NW #2 – Albuquerque, NM 87114 – (505) 898-3648