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The Cheapest New Mexico Renters Insurance Companies 2020
Renting a home or apartment is a great way to save money and avoid the liabilities of being a homeowner. But most people don’t know that their landlord’s insurance won’t over their personal belongings in the event of a fire, theft or a similar situation. If you’re a renter, it’s important to get renters insurance to protect your possessions.
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Unlike homeowners insurance, renters insurance is affordable, especially in New Mexico. According to the Insurance Information Institute, the average cost of a renters insurance premium in the state is just $187 per year. That breaks down to less than $16 per month.
If you’re looking to purchase renters insurance, there are a few things you should keep in mind. First, you’ll need to know how much coverage to get. A good rule of thumb is to calculate the original value of your personal belongings and use that to determine your coverage amount. You’ll also need to choose a deductible and figure out if you need additional coverage for things like jewelry or flood protection.
Best rental insurance companies in New Mexico
Purchasing renters insurance isn’t always an easy process. There are dozens of insurance providers on the market, and it can be difficult to determine which company will give you the best value.
To simplify things, we put together a list of the cheapest renters insurance companies in New Mexico. These insurance providers received high ratings in J.D. Power’s 2019 U.S. Renters Insurance Study for overall satisfaction, price, policy offerings and customer service.
In addition to J.D. Power’s ratings, we also evaluated how these companies were ranked by other market research firms. The table below includes ratings from AM Best and the Better Business Bureau (BBB).
| American Family | |||
| State Farm | |||
| Allstate | |||
| Nationwide |
These four companies provide affordable renters insurance to New Mexico residents. However, there isn’t one company that will be the cheapest for every renter. To help you figure out which company is best for you, we gave each renters insurance provider a superlative. We also got sample quotes for a 26 year old single female, living in Albuquerque, with $15,000 worth of coverage and a $500 deductible.
Cheapest for policy bundling – American Family
American Family earned the top spot on J.D. Power’s list with five-star ratings in every category, including price, policy offerings and customer service
If you already have at least one insurance policy with American Family, consider purchasing your renters insurance through the same company. American Family offers discounts for customers who bundle multiple policies. Unlike other providers, there’s no limit—the more you bundle, the more you save. Our sample quote was $199 per year.
Best for good customer service – State Farm
State Farm was also ranked well by J.D. Power and has one of the best customer service reputations in the industry.
State Farm is known for having great customer service. Based on J.D. Power’s rating, State Farm is among the best in the insurance industry. Whether you’re speaking to an agent or filing a claim on the website, you can expect to have an easy and frustration-free experience. The sample quote we received from State Farm was $204 per year.
Cheapest for claims-free renters – Nationwide
Nationwide had similar ratings to Allstate. The company received two-star ratings across the board, which puts Allstate on par with average insurance providers.
If you haven’t filed an insurance claim within the last several years, Nationwide will give you a discount on your renters insurance premium. We recommend contacting an agent to find out how much of a discount you can qualify for. With a claims-free discount, our sample quote came to $214.
Cheapest for retired renters – Allstate
Allstate has a great reputation and is known for being a reliable insurance provider. It offers good prices and discounts to help you save on your premium.
Allstate is the only insurance provider on our list that offers a discount to renters over age 55. If you fall into this category and are not actively seeking full-time employment, you can save up to 25% off your renters insurance premium. In this case, we got a sample quote for a 60-year-old married female living in Albuquerque, and the quote came to $210, which included a $38 retirement discount.
New Mexico renters insurance FAQs
No, renters insurance is not legally required in New Mexico, although individual landlords might make insurance a requirement to rent from them. However, purchasing renters insurance covers your personal belongings if they are damaged or destroyed by a qualifying event. Remember—your landlord’s insurance will not cover your possessions or personal liability.
The amount of renters insurance you purchase is up to you. Generally speaking, you should have as much insurance as the original value of your belongings. Make an inventory of everything you own—from clothing to electronics—and their original value. Use the total valuation to determine how much coverage to get.
There isn’t one company that will provide the cheapest renters insurance policies to everyone in New Mexico. The amount you’ll pay depends on your location, age, gender, claims-history, credit score and home safety features. Get multiple quotes before selecting an insurance provider.
Most insurance companies offer a variety of discounts that can help you save money on your renters insurance. Some of the most common ones include bundling your policies, being claims-free, having smoke alarms or an anti-theft system in your home, paying your policy in full and raising your deductible.
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Methodology
The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
For every review, our editorial team:
- Identifies five measurable aspects to compare across each brand
- Determines the rating criteria for each aspect score
- Averages the five aspect scores to produce a single SimpleScore™
Here’s a breakdown of the five aspect scores and their rating criteria for our renters insurance reviews.
Why do some brands have different SimpleScores on different pages?
To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.
Discounts
We awarded higher scores to insurance providers with more discounts available on their website.
Coverage Options
We gave providers with more renter insurance coverage options a higher score because they’re more likely to have a policy that best meets your needs.
Support
We awarded higher scores to renters insurance providers with the most channels for customer support.
Customer Satisfaction
We leveraged the J.D. Power Home Insurance Satisfaction Study℠ to see how customers rated their experience with each insurance provider. (If a provider wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)
Accessibility
We awarded higher scores to insurance providers that have more online and mobile features to easily manage your policy and claims.
