Best Homeowners Insurance in New Mexico

New Mexico homeowners find the cheapest insurance with State Farm, at an average rate of $166 a month.

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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

Lowest annual rate:

$1,989

arrow_downward

State average:

$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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