Key Takeaways
- State Farm has the cheapest homeowners insurance in New Mexico, at $166 a month.
- New Mexico's average home insurance rate is 34% higher than the national average.
In this article
New Mexico's cheapest home insurance companies
State Farm has the cheapest home insurance in New Mexico, at $166 a month. Allstate is close behind, at $168, then Farmers, at $211.
| Company | Average monthly rate |
|---|---|
| State Farm | $166 |
| Allstate | $168 |
| Farmers | $211 |
| Travelers | $308 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How much does home insurance cost in New Mexico?
The average cost of homeowners insurance in New Mexico is $213 a month. That's 34% higher than the national average home insurance rate of $159 a month.
There are many factors that home insurance providers consider when calculating your quote. These include:
- Your ZIP code
- Your insurance history
- The age of your home
- The coverage limits you choose
- Materials used in construction
When calculating your quote, home insurance providers weigh risk factors differently. For example, one company may consider the age of your home a higher risk than another. To make sure you get the best coverage at your best price, compare home insurance quotes from multiple providers.
Your deductible also affects your quote. If you choose a high deductible, you pay a cheaper rate. The table below shows how the average home insurance rate in New Mexico changes with different deductibles.
| Deductible | Average annual rate |
|---|---|
| $500 | $2,449 |
| $1,000 | $2,289 |
| $1,500 | $2,170 |
| $2,000 | $1,976 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
The dwelling coverage limit you choose also influences your quote. You'll want enough dwelling coverage to rebuild your home in the event of a total loss. The table below shows average home insurance rates in New Mexico based on different dwelling coverage limits.
| Dwelling coverage limit | Average annual rate |
|---|---|
| $200,000 | $2,608 |
| $350,000 | $4,079 |
| $425,000 | $4,615 |
| $500,000 | $5,356 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
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Best homeowners insurance companies in New Mexico
State Farm has the cheapest home insurance rates in New Mexico, while Allstate has the best discounts.
State Farm: Best rates
$1,989
$2,557
22% cheaper than New Mexico's average rate
Cheapest rates in New Mexico
Above-average claim resolution satisfaction rating, according to J.D. Power
Limited customer service hours
Allstate: Best discounts
Home insurance discounts include:
- Bundling
- Claim-free
- Good payment history
Below-state average rates
Online quotes not available in some areas
Customer service ratings for New Mexico home insurance companies
Of the largest home insurance companies operating in New Mexico, State Farm has the highest customer service rating, according to J.D. Power. Farmers has the lowest Complaint Index from the National Association of Insurance Commissioners.
Home insurance company customer satisfaction scores
| Company | Overall satisfaction score |
|---|---|
| Allstate | 815 |
| Farmers | 792 |
| State Farm | 829 |
| Travelers | 794 |
| Source: J.D. Power 2022 U.S. Home Insurance Study | |
J.D. Power ranks an insurer's customer satisfaction based on factors including policy offerings, price, billing process, policy information and claims processes.
Home insurance company complaint ratings
| Company | Complaint Index |
|---|---|
| Allstate | 0.33 |
| Farmers | 0.3 |
| State Farm | 0.35 |
| Travelers | NA |
| Source: National Association of Insurance Commissioners (2023) | |
The NAIC Complaint Index rates policyholders' claim-based complaints filed with state insurance departments.
Cheapest home insurance in New Mexico by city
Of the 10 biggest cities in New Mexico, Las Cruces has the cheapest average homeowners insurance rate, at $1,487 a year. Clovis has the highest average rate, $5,563 a year.
| City | Average annual rate |
|---|---|
| Las Cruces | $1,487 |
| Farmington | $1,555 |
| Rio Rancho | $1,569 |
| Santa Fe | $1,574 |
| South Valley | $1,796 |
| Albuquerque | $1,971 |
| Roswell | $4,035 |
| Carlsbad | $4,287 |
| Hobbs | $5,295 |
| Clovis | $5,563 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Las Cruces
Travelers has the lowest homeowners insurance rate in Las Cruces, $1,377 a year. State Farm is second-cheapest, at $1,434 a year.
| Company | Average annual rate |
|---|---|
| Travelers | $1,377 |
| State Farm | $1,434 |
| Allstate | $1,552 |
| Farmers | $1,585 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Farmington
Travelers has the lowest average rate for homeowners insurance in Farmington, $974 a year. State Farm is next, at $1,431 a year.
| Company | Average annual rate |
|---|---|
| Travelers | $974 |
| State Farm | $1,431 |
| Allstate | $1,687 |
| Farmers | $2,126 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Rio Rancho
Travelers has the cheapest average homeowners insurance rate in Rio Rancho, $1,177 a year. Allstate comes in second, at $1,474 a year.
| Company | Average annual rate |
|---|---|
| Travelers | $1,177 |
| Allstate | $1,474 |
| State Farm | $1,644 |
| Farmers | $1,983 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in New Mexico by county
Of the 10 largest counties in New Mexico, San Juan County has the most affordable average homeowners insurance rate of $1,642 a year. Lea County is the most expensive, at $4,862 a year.
| County | Average annual rate |
|---|---|
| San Juan | $1,642 |
| Sandoval | $1,682 |
| Dona Ana | $1,700 |
| Santa Fe | $1,871 |
| Bernalillo | $2,037 |
| Valencia | $2,085 |
| Otero | $2,574 |
| McKinley | $2,795 |
| Chaves | $4,025 |
| Eddy | $4,054 |
| Lea | $4,862 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Frequently asked questions
How much is home insurance in New Mexico?
Homeowners insurance in New Mexico costs an average $213 a month, which is 34% higher than the national average.
Which home insurance company has the cheapest rates in New Mexico?
State Farm has the lowest rates for home insurance in New Mexico, at an average $166 a month. That's 22% cheaper than average.
Why is New Mexico homeowners insurance so expensive?
New Mexico is at high risk for wildfires, leading to greater chances of a total loss. Insurers who underwrite policies in the state charge higher rates to offset their own costs.
Methodology
We collected quotes from every ZIP code in New Mexico for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
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