The Best New Mexico Home Insurance Companies

Own a home in New Mexico? You'll pay an average of $153 a month. We'll help you find the best home insurance quote.

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The Best New Mexico Home Insurance Companies

New Mexico homeowners insurance costs more than it does in some other states. Finding a rate below the state average of $153 a month can be difficult, so the challenge becomes finding the best possible combination of cost and coverage.

We looked into cost and coverage options, as well as customer satisfaction trends of the biggest insurers in New Mexico to help you.

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How much does home insurance cost in New Mexico?

Homeowners insurance in New Mexico costs an average of $153 a month. This is 6% higher than the national average home insurance rate of $144 a month.

Average home insurance rates by region
Region Average monthly rate
New Mexico $153
U.S. $144
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

New Mexico has high home insurance rates due, in part, to the state's wildfire risk and burglary rate. New Mexico experiences a lot of wildfires that can completely destroy a house. Homeowners insurance companies often raise premiums considerably to offset this risk.

Furthermore, New Mexico has high burglary rates. According to Statista, New Mexico experiences 648.8 burglaries per 100,000 residents in 2020. This is over twice the national average of 314.2 per 100,000. Premiums increase in the state for this reason.

Other factors that can affect your final yearly premium include:

  • The age of your home.
  • The construction materials used.
  • Your insurance claim history.

Best home insurance companies in New Mexico

Allstate is the best home insurance company in New Mexico for low rates, followed by State Farm and Farmers.

Cheapest home insurance companies in New Mexico
Company Average monthly rate
Allstate $135
State Farm $153
New Mexico average $153
Farmers $171
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Allstate

Allstate has the lowest average home insurance rate of $135 a month in New Mexico. This is 12% lower than New Mexico's average rate of $153 a month. On top of already low rates, Allstate also offers great discounts to reduce your premium even more. They include:

  • A 10% discount for becoming an Allstate policyholder.
  • If you buy a home insurance policy at least seven days before your current policy expires, you may save up to 10% off your premium.
  • If you've had no recent claims when you buy an Allstate home insurance policy, you can save another 20%.

Allstate does well in terms of customer satisfaction, too. Allstate scored 829 out of 1,000 in J.D. Power's 2021 U.S. Home Insurance Study. This is better than the segment average of 825. J.D. Power's study gauges an insurer's customer satisfaction based on their ability to deal with factors such as interaction, price and billing process. The higher the customer satisfaction score, the better.

Allstate also does well dealing with policyholder complaints. Allstate scored 0.83 in the NAIC Complaint Index. This index rates a company's ability to deal with claims-oriented complaints, such as claim resolution time or payout issues. The lower the Complaint Index, the better. With a National Complaint Index of 1.0, this puts Allstate in a strong position.

State Farm

State Farm has an average rate of $153 a month in New Mexico. While this is equal to the state average, State Farm is by far the most popular insurer overall. According to Statista, State Farm holds 17.9% of the homeowners insurance market share nationally, second only to Allstate, with 8.9%.

A contributor to State Farm's popularity is its customer satisfaction trends. State Farm holds a score of 835 out of 1,000 for overall customer satisfaction in J.D's Power's 2021 U.S. Home Insurance Study. This is well above the segment average of 825.

Farmers

Farmers has an average homeowners insurance rate of $171 a month in New Mexico. While this premium is 12% higher than the state average rate of $153, Farmers offers many ways to reduce your home insurance premium below the state average, including:

  • By bundling your auto and home insurance policies with Farmers, you could save upwards of 20% on your insurance costs.
  • If you have your main home systems like the electrical, plumbing and HVAC replaced, it can earn you a discount, too.
  • If you install qualifying home security and fire prevention systems in your home, you may get a discount as well.

Another perk of Farmers home insurance is its claim forgiveness program. Go five years without a claim and the next claim you file will not cause a premium increase.

Farmers received a score of 0.37 on the NAIC Complaint Index, the lowest index of the insurers we looked at.

New Mexico Home insurance rates by city

Both Rio Rancho and South Valley pay the lowest rates in New Mexico for home insurance with Allstate, at an average of $97 a month. Clovis has the highest average rate in New Mexico with State Farm, at $459 a month.

Average homeowners insurance rates in New Mexico's biggest cities
City Allstate Farmers State Farm
Alamogordo $127 $106 $125
Albuquerque $99 $139 $117
Clovis $271 $316 $459
Farmington $111 $142 $122
Hobbs $251 $299 $454
Las Cruces $102 $106 $106
Rio Rancho $97 $133 $126
Roswell $208 $308 $245
Santa Fe $104 $133 $123
South Valley $97 $165 $121
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Home insurance rates in cities tend to be higher due to denser populations, which can lead to higher crime rates and higher home insurance premiums.

Homeowners insurance rates by county

Bernalillo County has the lowest average home insurance rate of $100 a month in New Mexico. Lea County has the highest average rate, at $316 a month.

Average New Mexico homeowners insurance rates by county
County Allstate Farmers State Farm
Bernalillo $100 $146 $118
Chaves $208 $308 $248
Dona Ana $101 $106 $112
Lea $234 $299 $316
McKinley $107 $135 $117
Otero $128 $106 $131
San Juan $107 $142 $123
Sandoval $104 $137 $127
Santa Fe $108 $135 $124
Valencia $126 $189 $120
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Methodology

We used Quadrant Information Services to generate thousands of home insurance quotes for every ZIP code in New Mexico from the following providers:

  • Allstate
  • Farmers
  • State Farm

Our sample home used the following policy specifications:

  • Dwelling coverage: $275,000
  • Personal property coverage: 50% of dwelling ($137,500)
  • Other structures coverage: 10% of dwelling ($27,500)
  • Loss of use coverage: 20% of dwelling ($55,000)
  • Liability coverage: $100,000

Coverage sets were calculated using the following deductible limits:

  • $500
  • $1,000
  • $1,500
  • $2,000

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