Wouldn’t it be awesome if we could magically tell you the single company that has the lowest car insurance rates for low income drivers? It’s not that easy, however, as there are a ton of unknowns like if you are a man or woman, what physical damage coverage deductibles you want, and if you are married or single, that all impact the cost of coverage. This article will cover the causes of high insurance rates and educate you enough to have a good beginning to your quest for cheaper car insurance in New Mexico.
The type of vehicle requiring coverage is a large consideration when quoting economical coverage for low income drivers. Vehicles with high performance, a lack of modern safety features, or high incidents of liability claims will cost quite a bit more to insure than safer, lower-performance models.
The next list showcases auto insurance premiums for a number of the cheapest vehicles to buy insurance for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $1,540 |
| Honda Accord EX 4-Dr Sedan | $1,582 |
| Honda CR-V LX 4WD | $1,591 |
| Ford Escape XLT 4WD | $1,623 |
| Chevrolet Impala LS | $1,628 |
| Toyota RAV4 4WD | $1,660 |
| Dodge Grand Caravan Crew | $1,689 |
| Ford Explorer XLT 4WD | $1,719 |
| Nissan Altima 2.5 S 4-Dr Sedan | $1,751 |
| Honda Odyssey EX-L | $1,761 |
| Toyota Prius | $1,753 |
| GMC Sierra SL Crew Cab 4WD | $1,780 |
| Toyota Camry LE | $1,817 |
| Jeep Grand Cherokee Laredo 2WD | $1,826 |
| Ford F-350 XLT Crew Cab 2WD | $1,844 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $1,855 |
| Chevrolet Malibu LS | $1,868 |
| Compare Cheap Rates Go | |
Price data assumes single male driver age 30, 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-policy, and multi-vehicle. Estimates do not factor in specific location information which can change rates greatly.
Based upon these rates, you can conclude that cars like the Jeep Wrangler, Honda Accord, Honda CR-V, and Ford Escape will be the cheaper vehicles to insure for poor drivers.
Comparing rates for low-cost auto insurance is easier said than done, and figuring out which company quotes the most affordable insurance rates for low income drivers calls for a bit more work.
Each insurance company has a unique formula to determine rates, so let’s begin by examining the most competitive insurance companies in New Mexico. Keep in mind that Albuquerque, NM insurance rates are impacted by many factors which can significantly increase or decrease the cost of your policy. Simply improving your credit score, having a teen driver, or getting a ticket for running a stop sign may cause policy rate changes that can cause some rates to be higher-priced than the competition.
Compare Cheap Insurance Quotes in New Mexico
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $657 |
| 2 | Allied | $948 |
| 3 | Safeco | $1,014 |
| 4 | Farm Bureau Mutual | $1,166 |
| 5 | State Farm | $1,297 |
| 6 | Farmers | $1,302 |
| 7 | The Hartford | $1,312 |
| 8 | Central Mutual | $1,354 |
| 9 | Progressive | $1,490 |
| 10 | Travelers | $1,569 |
| 11 | California Casualty | $1,623 |
| 12 | GEICO | $1,624 |
| 13 | MetLife | $1,642 |
| 14 | Encompass | $1,711 |
| 15 | Allstate | $2,385 |
| 16 | Liberty Mutual | $2,554 |
| 17 | Sentry | $3,114 |
| Get Personalized Rates Go | ||
USAA quotes some of the most affordable car insurance rates in Albuquerque at around $657 each year. This is $911 less than the average price paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and State Farm would also be considered some of the best Albuquerque, NM auto insurance companies.
As depicted above, if you currently have coverage with Safeco and switched to USAA, you could earn a yearly savings of about $357. Drivers with Farm Bureau Mutual may save as much as $509 a year, and State Farm insureds might lower prices by $640 a year.
To see if your current coverage is too expensive, click here to begin a quote or click several companies below for low rates.
These estimates are averages for all insureds and vehicles and and are not figured with a specific zip code for low income drivers. So the insurer that fits your situation best may not even be in the top 17 companies in the list above. That helps illustrate why you need to compare rates from as many companies as possible using your own driver data and vehicle information.
One of the many factors that are used to help calculate the amount you pay each year for auto insurance is where your car is garaged. More densely populated places tend to have higher auto insurance costs, whereas areas with less congestion have the enjoyment of a little cheaper coverage.
The table below rates the most expensive cities in New Mexico for low income drivers in which to buy car insurance. Albuquerque comes in at #1 with the annual price of $1,389 for the average insurance policy, which is about $116 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Albuquerque | $1,389 |
| 2 | South Valley | $1,377 |
| 3 | Santa Fe | $1,356 |
| 4 | Artesia | $1,317 |
| 5 | North Valley | $1,316 |
| 6 | Hobbs | $1,296 |
| 7 | Los Lunas | $1,289 |
| 8 | Espanola | $1,260 |
| 9 | Los Alamos | $1,256 |
| 10 | Rio Rancho | $1,244 |
| 11 | Lovington | $1,207 |
| 12 | Portales | $1,186 |
| 13 | Roswell | $1,186 |
| 14 | Farmington | $1,183 |
| 15 | Carlsbad | $1,177 |
| 16 | Gallup | $1,176 |
| 17 | Las Vegas | $1,149 |
| 18 | Clovis | $1,145 |
| 19 | Deming | $1,143 |
| 20 | Las Cruces | $1,131 |
| Get a Custom Quote Go | ||
Premium costs are estimated as the specific zip code location can change premiums greatly.
Difference between liability only and full coverage rates
Reducing premiums for insurance is probably important to most people, and one of the easiest ways to buy cheap insurance for low income drivers is to not buy comprehensive and collision coverage. The information below illustrates the difference between insurance rates with full physical damage coverage and with liability coverage only. The premium estimates are based on no driving violations, no at-fault accidents, $1,000 deductibles, single marital status, and no other discounts are factored in.
If averaged out across all ages, comprehensive and collision coverage on your policy costs $1,356 per year over and above liability coverage. That brings up the question when is the right time to remove full coverage. There isn’t a steadfast formula that is best for determining when to drop physical damage insurance, but there is a general convention. If the annual cost of coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s assume your vehicle’s settlement value is $6,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most you would receive is $5,000 after the policy deductible has been paid. If premium cost is more than $500 a year to have full coverage, then it could be time to drop full coverage.
There are some cases where dropping physical damage coverage is not a good plan. If you still owe money on your vehicle, you must maintain physical damage coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not remove full coverage.
The diagram below illustrates how choosing a deductible can increase or decrease insurance rates when getting quotes for cheap insurance for low income drivers. The information is based on a married male driver, comprehensive and collision coverage, and no discounts are taken into consideration.
As shown above, a 40-year-old driver could save $304 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $456 by choosing a $1,000 deductible. Even younger insureds, like the age 20 example, have the ability to save as much as $1,020 every year by using a higher deductible.
When choosing a higher deductible, it is essential to have plenty of money set aside to cover the extra out-of-pocket expense, which deters some people from using high deductibles.
Your cheap policy may actually be overpriced
New Mexico insurance rates are determined by lots of factors that may substantially change the price you have to pay. Simply having a birthday, buying a different vehicle, or having a fender bender can trigger rate changes that can make some companies more affordable than the competition.
Not only may your risk profile change, but companies change their prices as needed in order to offset underwriting gains or losses. Higher than normal claims can result in additional price hikes, while better underwriting can cause lower-cost Albuquerque car insurance rates.
For example, the bar chart below shows the company with the cheapest car insurance in Albuquerque, NM for a 30-year-old male driver with no prior accidents, a clean driving record, and a good credit history. When quoting prices based on his current risk profile, USAA offers the cheapest car insurance rates in Albuquerque at $885 annually. This is $683 less than the average premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and State Farm are the remaining top five cheapest Albuquerque, NM auto insurance companies.
In this example, we will give the driver from the first example a claim, bad credit, and a stop sign violation. Since every car insurance company has a different formula to set their prices, comparing insurance quotes could result in a different set of the cheapest Albuquerque car insurance companies as shown below.
USAA now has the cheapest auto insurance in Albuquerque with Central Mutual, The Hartford, Allied, and Safeco completing the list. This example illustrates why it is so important to compare lots of rates to get the most affordable insurance rates for low income drivers.
Insurance rates can be altered by many risk factors and can decrease or increase without notice, so the most economical company the last time you shopped your coverage around may now be one of the more expensive options.
How to find budget-friendly car insurance for low income drivers
Here are some of the recommended penny-pinching suggestions that can help you buy low-cost coverage.
- Having at-fault accidents will increase rates
- Be a safe driver
- Increase deductibles to save money
- Buy a car with high safety ratings
- Drop full coverage on older vehicles
- Improve your credit rating
- Compare prices as often as possible
The last tip in the list is incredibly critical, as we pointed out in the prior information. Rates fluctuate considerably, so don’t be afraid to buy a policy from a new company if a lower-cost policy is available.
Brand loyalty is great, but it’s not a great idea if that loyalty results in overpaying thousands of dollars over several years. In just a couple of minutes you could compare prices and find cheaper car insurance for low income drivers in Albuquerque.
If you prefer to get some guidance when shopping for the best coverage for low income drivers, the agents shown below can most likely help you determine which is the best policy. To locate an Albuquerque auto insurance agent nearest to you, click the button following the list.
- Edward Dunn – State Farm Insurance Agent
3750 Juan Tabo Blvd NE Ste E – Albuquerque, NM 87111 – (505) 332-8050 - Cynthia Bahling – State Farm Insurance Agent
12700 San Rafael Ave NE #2 – Albuquerque, NM 87122 – (505) 292-3934 - Paul Gallegos State Farm Insurance
5500 San Mateo Blvd NE #105 – Albuquerque, NM 87109 – (505) 883-2583 - Cindy Maxwell – State Farm Insurance Agent
8244 Menaul Blvd NE – Albuquerque, NM 87110 – (505) 883-9000