The words “affordable” and “insurance” really shouldn’t be used in the same sentence, in particular when you are searching for the cheapest auto insurance for drivers requiring a SR22. Because of the high cost, let’s get started by showing you a few of the things that help determine car insurance rates, and find out if we can help you reduce the cost of the next policy you buy.
Finding dependable, cost effective car insurance is not always easy, and determining which companies quote the cheapest insurance rates for drivers requiring a SR22 requires even more shopping around. Each insurer has a different formula to establish rates, so let’s begin by examining the insurance companies with the most affordable rates in Albuquerque.
It’s important that you understand Albuquerque, NM insurance rates are based on many factors which can significantly increase or decrease the price you pay for coverage. This price variation is why consumers need to compare lots of rates when trying to get the best insurance quotes for drivers requiring a SR22. Insurance prices are influenced by many risk factors and change dramatically, so the best option three years ago may now be quite expensive.
Find the Best Cheap Insurance for SR22 Drivers
|Rank||Company||Cost Per Year|
|4||Farm Bureau Mutual||$1,166|
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USAA quotes some of the best car insurance rates in Albuquerque at around $683 a year. Allied, Safeco, Farm Bureau Mutual, and Farmers would also be considered some of the more affordable Albuquerque, NM auto insurance companies.
As the rates illustrate above, if you are a customer of Farmers and switched to Allied, you might realize savings of in the neighborhood of $356. New Mexico drivers with State Farm could save as much as $390 a year, and Central Mutual customers might see rate reductions of $408 a year.
If you want to see how much you could save, click here to start a quote or visit any of the companies below.
Understand that those policy prices are averages for all insureds and vehicles and and are not calculated with a specific location for drivers requiring a SR22. So the auto insurance company that can offer you the lowest price may not even be in the top 17 companies shown above. That point stresses why you need to quote rates from as many companies as possible using your own specific driver and vehicle information.
For high risk drivers, one of the more important things that determine insurance cost is where you live in Albuquerque. Areas with a lot of weather claims or more people tend to have higher auto insurance costs, whereas more rural areas benefit from lower prices.
The illustration below ranks the highest-priced areas in New Mexico for drivers requiring a SR22 to purchase auto insurance in. Albuquerque is ranked #1 with an annual rate of $1,431 for the average insured, which is around $119 per month.
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Price information shown is comparative as the specific Albuquerque residence address can change price quotes significantly.
Difference between full coverage and liability only rates
Paying a lower price for insurance is important to the majority of people, and one good way to find cheap insurance for drivers requiring a SR22 is to buy only liability coverage. The information below illustrates the difference between insurance premiums with full physical damage coverage compared to only buying liability only. The premium estimates are based on no driving violations, no at-fault accidents, $500 deductibles, single marital status, and no discounts are factored in.
On average, physical damage coverage costs $2,059 per year over liability only. That raises the question when is it safe to stop buying full coverage. There is no specific rule to drop full coverage on your policy, but there is a general guideline. If the yearly cost of full coverage is more than around 10% of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $10,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $9,000 after you pay the deductible. If you are paying over $900 a year for full coverage, the it may be a good time to stop paying for full coverage.
Types of discounts on Albuquerque insurance
Auto insurance companies that sell policies for drivers requiring a SR22 may also offer rate discounts that may potentially lower prices by as much as 35% or more if you qualify for them. A few of the larger companies and a selection of discounts are shown below.
- Farm Bureau offers discounts including renewal discount, multi-policy, 55 and retired, good student, multi-vehicle, driver training, and youthful driver.
- Liberty Mutual has savings for multi-policy, preferred payment discount, newly married, multi-car, new graduate, exclusive group savings, and safety features.
- State Farm includes discounts for student away at school, multiple autos, passive restraint, Drive Safe & Save, and defensive driving training.
- Auto-Owners Insurance may include discounts for mature driver, company car, paperless, safe driver, air bags, and teen driver.
- GEICO offers discounts for anti-lock brakes, military active duty, multi-policy, federal employee, driver training, daytime running lights, and good student.
- SAFECO offers premium reductions for safe driver, accident prevention training, anti-lock brakes, teen safety rewards, and multi-car.
The diagram below compares insurance prices with and without discounts being applied to the rates. The costs are based on a female driver, three traffic citations and one accident, New Mexico state minimum liability limits, full physical damage coverage, and $1,000 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with paperless filing, anti-theft, vehicle safety, homeowner, passive restraint, and continuous coverage discounts applied. When discounts are applied, the average savings per year on insurance for drivers requiring a SR22 is 28% or $721.
Rate increases following a ticket or accident
The easiest way to receive low insurance rates for high risk drivers is to drive safely and have a clean driving record. The information below demonstrates how citations and at-fault claims raise auto insurance costs for different age categories. The price estimates are based on a married male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are applied to the premium.
The data charted above shows the average cost of auto insurance in New Mexico per year with no violations or accidents is $1,723. Receive two speeding tickets and the average cost surges to $2,377, an increase of $654 each year. Now throw in two accidents along with the two speeding tickets and the annual cost of insurance for drivers requiring a SR22 jumps again to an average of $4,942. That’s an increase of $3,220, or $268 per month, just for being a less-than-perfect driver!
Comparing rates can save you money
Albuquerque insurance rates are based on many factors that may substantially change your annual premium. Simply turning a year older, moving across town, or having an at-fault accident can produce rate changes that can now make some companies affordable when they were higher priced.
And not only may your rating factors change, but auto insurance companies modify pricing as needed to reflect underwriting profits or losses. A period of increased losses may result in higher priced premiums, while long-term profits can cause lower-priced Albuquerque car insurance rates.
To illustrate this example, the data below shows the cheapest car insurance in Albuquerque, NM for a 30-year-old male driver with a clear driving record, no claims, and good credit. If we estimate prices based on his personal risk profile, USAA might quote the cheapest car insurance rates in Albuquerque at $875 annually. This is $693 less than the average price paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers are also on the list of the cheapest Albuquerque, NM auto insurance companies.
Now we will give the driver from above a claim or two, a little lower credit rating, and a traffic citation. Due to the fact that every auto insurer has a unique approach for determining rates in each state, getting updated rate quotes could result in a slightly different list of companies as shown below.
USAA now has the best price on car insurance in Albuquerque with Allied, Central Mutual, The Hartford, and Safeco now being in the top five. This example shows why drivers need to compare as many rates as possible when trying to get the cheapest insurance rates for drivers requiring a SR22.
Rates can be altered by many factors and change dramatically, so the most economical company the last time you shopped your coverage around may now be costing you a lot of money.