Once a driver turns 25, they move out of the highest-risk age category, resulting in a significant reduction in their car insurance rates. With a good driving record, a 25-year-old pays $1,549 more than for a full coverage policy compared to what they paid at age 20.
A 25-year-old driver typically pays an average of $2,259 annually or $188 monthly for full coverage car insurance across the nation, which is $383 more than the cost for a 24-year-old.
In New Mexico, the average annual rate for a full-coverage policy for 25-year-olds is $2,318.
Keep reading to learn more about car insurance for 25-year-olds in New Mexico
Cheapest car insurance for 25-year-olds in New Mexico
In New Mexico, a 25-year-old driver generally pays $2,318 per year for full coverage car insurance. The table below shows the average full coverage rates from major insurance companies in New Mexico for 25-year-old male and female drivers.
| Company | 25-year-old female | 25-year-old male |
|---|---|---|
| Geico | $1,754 | $1,710 |
| Central Insurance | $1,798 | $1,798 |
| Progressive | $1,822 | $1,908 |
| State Farm | $1,845 | $2,112 |
| Nationwide | $2,072 | $2,220 |
| Farmers | $2,770 | $2,892 |
| Allstate | $2,992 | $3,183 |
| Iowa Farm Bureau | $3,115 | $3,143 |
| Kemper | $3,588 | $3,894 |
| USAA* | $1,213 | $1,295 |
How much is car insurance for a 25-year-old in New Mexico each month?
How much you pay for car insurance as a 25-year-old in New Mexico will vary depending on where you live, coverage levels, credit score, driving record and the deductible you select.
The table below shows how much car insurance costs for a 25-year-old per month and per year, on average, in New Mexico.
| 25-year-old policy | Average annual rates | Average monthly rates |
|---|---|---|
| State Minimum Liability Only | $484 | $40 |
| 50/100/50 Liability Only | $721 | $60 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,318 | $193 |
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How do rates for 25-year-olds compare to rates for other ages in New Mexico?
Car insurance premiums are at their highest during your teenage years and decrease annually until you turn 65, when they start to rise again. The chart below shows how rates change at different ages, from your teens to 70.
| Age | Average annual rates | Average monthly rates |
|---|---|---|
| 16 | $8,681 | $723 |
| 20 | $3,867 | $322 |
| 25 | $2,318 | $193 |
| 40 | $2,049 | $171 |
| 65 | $1,942 | $162 |
| 70 | $2,017 | $168 |
Check out our detailed guide on the average car insurance rates by age
How much is car insurance for a 25-year-old male in New Mexico?
The average full coverage car insurance policy for a 25-year-old male with a $500 comprehensive/collision deductible in New Mexico is $2,376, according to CarInsurance.com data.
| Coverage level | Average annual rates for male |
|---|---|
| State Minimum Liability Only | $489 |
| 50/100/50 Liability Only | $722 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,376 |
The Insurance Institute for Highway Safety reports that 25- to 30-year-old males were involved in 1,848 fatal accidents in 2020 – a rate of about 15.6 per 100,000 male drivers. That’s still high compared to the accident rates for males in their 30s and 40s, but it is trending down from the fatality rates for those in their early 20s.
How much is car insurance for a 25-year-old female in New Mexico?
With a good driving record and credit score, female drivers will notice their insurance rates have dropped substantially at age 25.
The average national cost of a full coverage insurance policy for a 25-year-old female with a $500 comprehensive/collision deductible is $2,224. In New Mexico, the average annual cost for a full coverage policy is $2,260, $36 more than the national rate for 25-year-old females.
See other rates in the table below.
| Coverage level | Average annual rates for female |
|---|---|
| State Minimum Liability Only | $478 |
| 50/100/50 Liability Only | $719 |
| 100/300/100 Liability with $500 Comp/Coll Deductible | $2,260 |
Average car insurance rates by state for a 25-year-old
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At age 25, young adults will be starting to build financial assets so they can afford more than basic liability car insurance, which pays for others’ injuries and damage you cause to their property in an accident. Typically, the state-minimum coverage isn’t enough – medical costs can quickly escalate if significant injuries occur in an accident.
As young adults gain more disposable income, they should consider comprehensive and collision coverage – a must if you’re financing a vehicle. If you have a higher deductible, you can lower your rate, but you’ll be responsible for the deductible if you make a claim.
Ultimately, the best car insurance for 25-year-olds is the policy that meets their individual needs. The Best Insurance Companies survey found that American Family is the best insurance company for young drivers and teens. Review a company’s National Association of Insurance Commissioners’ (NAIC) score, which ranks a company by the number of customer complaints it receives, its J.D. Power auto claims satisfaction score and AM Best data, which measures financial strength.
Car insurance discounts for 25-year-olds in New Mexico
Kevin Lynch, an assistant professor of insurance at The American College of Financial Services in Bryn Mawr, Penn., stresses that the three biggest favors any young adult can do for themselves in terms of getting the lowest insurance rates are to stay accident-free, maintain a clean driving record and a good credit score.
“They’re the essentials of getting affordable insurance,” he says. “After that, you can look at a variety of other things such as affiliated discounts, bundling insurance policies and perhaps an in-car monitoring device.”
Other car insurance discounts that might be available:
- Good driver/safe driver: Up to 30%
- Multi-policy discounts: Up to 13%
- Lower annual mileage/driving less: Up to 9%
- Usage-based discount programs/telematics: Up to 10%
- Paperless discount/autopay: Up to 4%
- Loyalty discount: Up to 11%
- Anti-theft devices: Up to 2%
In addition to discounts, consider the kind of car you choose. Practical, safe and reliable cars are cheaper to insure than sports or luxury vehicles.
Compare rates on car models like the top teen and young adult-ready cars that cost less than $15,000 with high safety ratings.
Guide: How to lower car insurance costs
Final thoughts on car insurance for 25-year-olds in New Mexico
As you gain more experience driving, your auto insurance rates will fall. The even better news is it will continue to get cheaper as you age.
Resources & Methodology
Sources
- Insurance Institute for Highway Safety, Highway Loss Data Institute. “Fatality Facts 2020, Males and Females.” Accessed October 2024.
- National Association of Insurance Commissioners. “NAIC Score” Accessed October 2024.
- J.D. Power. “2022 U.S. Auto Claims Satisfaction Study” Accessed October 2024.
- AM Best. “AM Best Ratings” Accessed October 2024.
Methodology
CarInsurance.com gathered auto insurance rates from Quadrant Information Services for 25-year-old male and female drivers across various coverage levels: state minimum, 50/100/50 liability, and 100/300/100 full coverage with a $500 deductible.
The rates were obtained using a sample profile of a 25-year-old individual driving a Honda Accord LX with no history of traffic violations and a good insurance score. To evaluate the rates, we compared 53,409,632 insurance quotes from 170 regional and national insurance companies, encompassing 34,588 ZIP codes across the United States.
Note: USAA is only available to military community members and their families.
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Guide to car insurance (with rates) in cities of New Mexico