Wouldn’t it be so easy if we could magically tell you the one company that has the best rates for teenagers? That is not the case, however, as there are a whole slew of unknown elements such as if you are currently insured, your credit score, and the amount of coverage you want, that all factor into the price you pay. If you keep reading, we will teach you about the things that cause high insurance rates and will hopefully give you a jump start in finding the best auto insurance in Albuquerque.
One of the more important considerations that help determine the amount you pay for auto insurance is where you normally keep your vehicle. More populated areas tend to pay more, whereas more rural areas profit from lower rates.
The illustration below sorts the highest-priced places in New Mexico for teenagers to buy auto insurance in. Albuquerque comes in at #1 with an annual rate of $1,431 for car insurance, which is about $119 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Albuquerque | $1,431 |
| 2 | South Valley | $1,349 |
| 3 | Artesia | $1,330 |
| 4 | North Valley | $1,329 |
| 5 | Santa Fe | $1,302 |
| 6 | Hobbs | $1,296 |
| 7 | Los Lunas | $1,289 |
| 8 | Rio Rancho | $1,282 |
| 9 | Espanola | $1,273 |
| 10 | Los Alamos | $1,269 |
| 11 | Roswell | $1,222 |
| 12 | Las Vegas | $1,195 |
| 13 | Gallup | $1,188 |
| 14 | Clovis | $1,180 |
| 15 | Carlsbad | $1,177 |
| 16 | Portales | $1,175 |
| 17 | Lovington | $1,171 |
| 18 | Farmington | $1,148 |
| 19 | Deming | $1,109 |
| 20 | Anthony | $1,109 |
| Compare Prices Now Go | ||
Annual rates are comparative as the specific zip code location can change rates noticeably.
Determining which companies have the best car insurance rates for teenagers may require more work than just getting one or two price quotes. Every auto insurer has a proprietary method to set policy rates, so we’ll go over the most affordable car insurance companies in Albuquerque.
It’s important that you understand New Mexico car insurance rates are calculated based on many things which can significantly increase or decrease the price of coverage. Turning one year older, moving to a new city, or having a fender bender can trigger price changes that can cause some rates to be more affordable than the competition.
Find the Cheapest Auto Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $677 |
| 2 | Allied | $920 |
| 3 | Safeco | $974 |
| 4 | Farm Bureau Mutual | $1,202 |
| 5 | State Farm | $1,297 |
| 6 | Farmers | $1,315 |
| 7 | The Hartford | $1,326 |
| 8 | Central Mutual | $1,328 |
| 9 | Travelers | $1,537 |
| 10 | Progressive | $1,550 |
| 11 | California Casualty | $1,575 |
| 12 | MetLife | $1,594 |
| 13 | GEICO | $1,624 |
| 14 | Encompass | $1,694 |
| 15 | Allstate | $2,337 |
| 16 | Liberty Mutual | $2,554 |
| 17 | Sentry | $3,208 |
| Find Cheaper Rates Go | ||
USAA normally has some of the best car insurance rates in Albuquerque at around $677 a year. Allied, Safeco, Farm Bureau Mutual, and State Farm also qualify as some of the cheaper Albuquerque, NM car insurance companies.
As shown above, if you are insured with Farm Bureau Mutual and switched to Allied, you may realize savings of approximately $282. Policyholders with State Farm might save as much as $377 a year, and Farmers insureds might reduce rates by $395 a year.
If you would like to find cheaper car insurance rates, click here or visit any of the low-priced companies below.
Understand that those premiums are averaged for all types of insureds and vehicles and do not factor in a specific location for teenagers. So the auto insurance company that has the cheapest rates for you may not even be in the top 17 companies shown above. That helps illustrate why you need to get car insurance quotes using your own specific driver information and vehicle.
The vehicle driven is a large factor when consumers are trying to find cheap car insurance for teenagers. Vehicles with high performance engines, a lack of advanced safety features, or high incidents of liability claims will cost quite a bit more to insure than more economical and safe models.
The information below presents car insurance prices for a number of the most economical automobiles to insure.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape Limited 2WD | $6,653 |
| Honda CR-V EX-L 2WD | $6,663 |
| Honda Accord EX-L 4-Dr Sedan | $7,057 |
| Toyota Prius | $7,121 |
| Ford F-150 STX Regular Cab 2WD | $7,349 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $7,358 |
| Ford Edge SE 2WD | $7,349 |
| Toyota Tacoma 4WD | $7,412 |
| Volkswagen Jetta SE 2.5 Station Wagon | $7,525 |
| Ford Focus S 4-Dr Sedan | $7,753 |
| Honda Odyssey EX | $7,758 |
| Toyota RAV4 Limited 4WD | $7,816 |
| Chevrolet Malibu LS | $7,826 |
| Compare Rates Now Go | |
Above prices assume single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in garaging location in Albuquerque, NM which can impact prices noticeably.
Looking at the data, you can figure that vehicles like the Ford Escape, Honda CR-V, Honda Accord, Toyota Prius, and Ford F-150 are most likely to be some of the cheapest vehicles to insure for teen drivers. The price for car insurance will tend to be more expensive anyway because there is more claim risk for teenagers, but generally speaking those specific models will probably have the cheapest auto insurance rates compared to all other vehicles.
Ending up with a highly-rated insurer can be rather challenging considering how many choices you have in New Mexico. The company rank data shown below can help you analyze which auto insurance companies you want to consider purchasing a policy from.
The rankings below are only made up of the largest auto insurers in America, so companies with more of a regional focus are not factored into this list. If you would like to check rates from these top insurers and more, follow this link.
Top 10 Large Auto Insurers Overall in Albuquerque
- USAA
- American Family
- State Farm
- The Hartford
- AAA Insurance
- GEICO
- The General
- Titan Insurance
- Progressive
- Allstate
Should you buy full coverage?
Paying less for car insurance should be important to the majority of vehicle owners, and one of the fastest ways to buy cheaper insurance for teenagers is to not buy comprehensive and collision coverage. The diagram below illustrates the difference between insurance prices with and without full coverage. The premiums assume a clean driving record, no claims, $1,000 deductibles, single marital status, and no additional discounts are factored in.
If we average the cost for ages 20 through 70, full coverage on your policy costs $1,830 per year more than just insuring for liability. Many drivers may wonder if it’s worth it to buy full coverage. There is no exact formula to drop full coverage, but there is a general guideline you can use. If the yearly cost for physical damage coverage is 10% or more of the replacement cost minus the deductible, then it might be time to buy liability only.
For example, let’s pretend your vehicle’s claim settlement value is $10,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would get paid by your company is $9,000 after the policy deductible has been paid. If it’s costing you more than $900 a year for your policy with full coverage, then you may want to consider only buying liability coverage.
The illustration below illustrates how your choice of deductibles can affect insurance rates when researching cheap insurance for teenagers. The premiums are based on a married female driver, full physical damage coverage, and no other discounts are factored in.
The data above shows that a 30-year-old driver could cut expenses by $356 a year by increasing from a $100 deductible up to a $500 deductible, or save $536 by switching to a $1,000 deductible. Even younger insureds, like the Age 20 category, could roll back prices up to $762 annually by using higher deductibles when buying full coverage.
If you make the decision to raise deductibles, it is a good idea to have plenty of discretionary funds to cover the extra out-of-pocket expense associated with higher deductibles.
Shop around and save
Albuquerque, NM car insurance rates are based on many factors which can substantially decrease or increase the cost of your policy. Turning one year older, increasing liability limits, or having an accident may prompt premium changes resulting in some rates now being more affordable than competitors.
And not only may your rating factors change, but companies change rates multiple times each year in order to remain profitable. Higher than normal claim frequency or severity can cause rate increases, while long-term profits can produce lower-priced Albuquerque car insurance rates.
To illustrate this example, the bar chart below shows the companies that have the cheapest car insurance in Albuquerque, NM for a 40-year-old female driver with no prior claims, no tickets, and a high credit rating. If we compare prices based on her current risk profile, USAA may offer the cheapest car insurance rates in Albuquerque at $939 each year. This is $629 less than the average premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers are the remainder of the cheapest Albuquerque, NM auto insurance companies.
The example below compares rates after we give the driver in the first chart a claim surcharge, a little lower credit rating, and a blemish on her driving record. Because each company has a proprietary method to determine rates, analyzing rates most likely will result in a different set of the cheapest car insurance companies in Albuquerque as shown below.
USAA now has the lowest price in Albuquerque, NM with Allied, Safeco, State Farm, and The Hartford also being competitive. This example shows why drivers need to shop around to find affordable car insurance rates for teenagers. Insurance rates are impacted by many risk factors and change dramatically, so the best price when you last compared rates may now be quite expensive.