Figuring out which insurers offer the most affordable car insurance rates for drivers with good credit will take more time than just comparing a company or two. Each company has their own process for setting prices, so let’s take a look at the car insurance companies that tend to be cheaper in Albuquerque.
It’s a good idea to know that Albuquerque car insurance rates are based on many factors that can increase the price you have to pay. Simply turning a year older, buying a home instead of renting, or getting a few speeding tickets can trigger changes in premium resulting in some companies being cheaper than before.
Cheapest Insurance Rates for High Credit
|Rank||Company||Cost Per Year|
|4||Farm Bureau Mutual||$1,166|
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USAA quotes some of the most affordable car insurance rates in Albuquerque at around $677 a year. This is $891 less than the average price paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and State Farm also qualify as some of the most economical Albuquerque, NM auto insurance companies.
As illustrated above, if you are currently insured with Allied and switched to USAA, you could realize yearly savings of upwards of $281. New Mexico drivers with Safeco may save as much as $307 a year, and Farm Bureau Mutual policyholders might cut rates by $489 a year.
To find out how your current rates compare, click here to start your free quote or quote rates from the companies below.
Remember that these premiums are averaged across all drivers and vehicles and and are not figured with a specific vehicle garaging location for drivers with good credit. So the insurer that fits your needs best may not even be in the list above. That is why you need to get rate quotes using your own personalized driver profile and vehicle information.
The vehicle needing coverage is one of the biggest factors when trying to find the lowest-priced auto insurance for drivers with good credit. Vehicles with lower performance, modern passenger safety features, or a low likelihood of liability claims will cost substantially less to insure than adrenaline junky models. The next table outlines insurance rates for the cheapest automobiles to insure.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$1,457|
|Honda Accord LX 4-Dr Sedan||$1,560|
|Honda CR-V LX 4WD||$1,566|
|Dodge Grand Caravan SE||$1,594|
|Ford Focus S 4-Dr Sedan||$1,654|
|Toyota Tacoma Double Cab 4WD||$1,686|
|Ford F-150 STX Regular Cab 2WD||$1,707|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,717|
|Ford Explorer XLT AWD||$1,742|
|Honda Odyssey EX-L W/Rear Entertainment||$1,775|
|Kia Optima LX||$1,807|
|Ford Fusion Sport 4-Dr Sedan||$1,812|
|Chevrolet Equinox LTZ AWD||$1,807|
|Volkswagen Jetta 2.0T Station Wagon||$1,834|
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Above prices assume 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-vehicle, and multi-policy. Rates do not factor in your specific Albuquerque, NM location which can impact insurance rates substantially.
Based upon these rates, you can presume that makes and models like the Ford Escape, Honda Accord, Honda CR-V, Toyota Prius, and Dodge Grand Caravan are going to be the less-costly vehicles to insure for financially responsible drivers.
For financially responsible drivers, one of the largest criteria that are looked at to determine insurance cost is your address in Albuquerque. Areas with more people or even just a higher incidence of claims are more likely to have higher rates, whereas areas with less congestion benefit from having to pay less for coverage.
The following table rates the most expensive cities in New Mexico for drivers with good credit to purchase auto insurance in. Albuquerque ranks #1 having an annual price of $1,375 on average, which is around $115 monthly.
|Rank||City||Premium Per Year|
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Premium amounts are estimated as the specific zip code location can increase or decrease premiums greatly.
Bad driving habits will cost you more
The recommended way to get low car insurance premiums in New Mexico for financially responsible drivers is to drive safely and not receive tickets or have accidents. The diagram below demonstrates how traffic citations and at-fault accidents impact annual premium costs for different ages of insureds. The rate quotes are based on a single male driver, comprehensive and collision coverage, $250 deductibles, and no discounts are factored in.
In the previous chart, the average cost of an auto insurance policy in New Mexico per year with no violations or accidents is $2,262. Get two speeding tickets and the average cost hikes up to $2,999, an increase of $737 each year. Next add two accidents along with the two speeding tickets and the yearly cost of car insurance for drivers with good credit increases to an average of $5,738. That’s an increase of $3,476, or $290 per month, just for not driving responsibly!
How much more does full coverage cost?
Saving money on car insurance is important to most drivers, and one of the fastest ways to lower the cost of insurance for drivers with good credit is to only buy liability insurance. The diagram below shows the difference between insurance costs when comparing full coverage to liability only. The premiums are based on a clean driving record, no claims, $250 deductibles, single marital status, and no discounts are applied.
If we average the cost for all age groups, physical damage coverage on your policy costs $2,262 per year more than just insuring for liability. A very common question is when is the right time to remove full coverage. There is no definitive formula that is best for determining when to drop full coverage on your policy, but there is a general guideline. If the annual cost of comprehensive and collision coverage is more than 10% of the settlement you would receive from your company, the it may be a good time to stop paying for full coverage.
For example, let’s pretend your vehicle’s book value is $5,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $4,000 after you pay the deductible. If you are currently paying more than $400 a year for physical damage coverage, then it’s probably a good time to buy liability coverage only.
There are a few situations where dropping physical damage coverage is not financially feasible. If you have an outstanding loan on your vehicle, you have to carry full coverage in order to satisfy the requirements of the loan. Also, if your savings is not enough to buy a different vehicle if your current one is totaled, you should keep full coverage.
Get discounts on Albuquerque car insurance
Insurance providers that offer quotes for drivers with good credit could also offer price discounts that could lower prices by as much as 30% if you qualify. Popular car insurance companies and some of the premium reductions they offer include:
- GEICO has discounts for five-year accident-free, defensive driver, anti-theft, federal employee, and air bags.
- Travelers may have discounts that include good student, continuous insurance, new car, student away at school, early quote, and multi-car.
- Farm Bureau offers discounts for 55 and retired, good student, driver training, multi-vehicle, youthful driver, and renewal discount.
- Liberty Mutual may offer discounts for newly married, good student, newly retired, hybrid vehicle, safety features, new move discount, and new graduate.
- American Family offers premium reductions for air bags, early bird, TimeAway discount, multi-vehicle, and good student.
- Progressive offers discounts including online quote discount, multi-vehicle, multi-policy, continuous coverage, good student, online signing, and homeowner.
The example below illustrates the difference between yearly insurance costs with and without discounts applied. The prices are based on a male driver, no tickets, no at-fault accidents, New Mexico state minimum liability limits, comp and collision included, and $250 deductibles. The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with anti-theft, marriage, accident-free, homeowner, defensive driving course, and passive restraint discounts applied. When drivers take advantage of discounts, the average savings per year on car insurance for drivers with good credit is 28% or $516.
What aren’t you shopping around?
New Mexico car insurance rates are calculated based on many things that will increase or decrease the price you pay for coverage. Simply turning a year older, buying a new vehicle, or getting a reckless driving citation can trigger rate changes that can now make some companies more affordable than before. Not only may things change on your end, but insurance companies change their prices as often as every quarter as an adjustment for underwriting gains or losses. Significantly higher losses can cause rate hikes, while lower claims can produce cheaper Albuquerque car insurance rates.
To illustrate this point, the graph below shows a variety of companies that have the cheapest car insurance in Albuquerque, NM for a 40-year-old male driver with no accidents, a clean driving record, and good credit. If we look at prices based on his current risk factors, USAA may offer the most affordable car insurance rates in Albuquerque at $883 per year. This is $685 less than the average rate paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and The Hartford round out the rest of the cheapest Albuquerque, NM auto insurance companies.
The example below compares rates after we give the driver from the first set of rates a claim or two, slightly worse credit, and a stop sign violation. Since every car insurance company has their own guidelines for setting prices, comparing quotes most likely will result in a new list of the cheapest car insurance companies in Albuquerque as shown below.
USAA now has the best insurance rate in Albuquerque, NM with Central Mutual, State Farm, Allied, and Safeco also being competitive. This demonstrates why consumers need to take the time to shop around to get cheap insurance quotes for drivers with good credit. Car insurance prices can be altered by many things and can change without notice, so the cheapest rate when you last compared rates may now be quite expensive.