New Mexico Car Insurance Guide

It doesn’t matter whether you live in Santa Fe, Albuquerque, or anywhere in between - having auto insurance is the law in New Mexico. Why put you and your vehicle at risk without insurance? While it’s true that a decent car insurance policy can be expensive, the coverage is well worth the cost for your peace of mind alone. If you live in New Mexico, you absolutely need to read up about auto insurance in your state with this informative guide!

New Mexico Auto Insurance Minimum Requirements

Currently there are not any federal laws regarding auto insurance, it’s up to each state to come up with its own standards. In New Mexico, the minimum requirements for auto insurance are mostly in line with national averages. $20,000 in liability coverage is required for bodily injury or death to one person and $50,000 is required per accident. State law also requires $10,000 in coverage for property damage. While meeting these minimums will keep you legal in the road, liability coverage only is probably far from adequate for most people. Most car insurance experts would recommend at least having some form of collision coverage, even if it’s a small amount.

Car Insurance Rates in New Mexico

According to the most recent statistics, the average auto insurance policy in New Mexico costs less than $750. Of course, that is including collision, comprehensive, and liability coverage. If you’re only looking to meet the state’s minimum insurance requirements, you could probably get away with paying much less than that. Liability only coverage is estimated to be less than $450, which is fairly affordable compared to other states. New Mexico ranks in about the middle of the pack for auto insurance rates at #29. Although its ranking isn’t as low as residents would like obviously, it isn’t too bad when you consider that the state has a large amount of uninsured motorists, which can drive up the cost of coverage.

Uninsured Motorists Coverage

Despite the fact that auto insurance is required by law, there are thousands of people who do not have coverage. In fact, it’s estimated that nearly 30% of all drivers in New Mexico do not have adequate auto insurance policies. That percentage is one of the highest in the nation. Even if you do have coverage, don’t fall for the assumption that you’re invincible, as drivers without insurance could still affect you. If an uninsured driver is ever found liable for an accident, it could take months or even years for them to fully repay the damage. Fortunately, that’s why there is uninsured motorist coverage. This type of auto insurance will cover your vehicular damage or bodily injury if you are in an accident that an uninsured driver is found liable for. While it will cost extra, having uninsured motorist coverage on top of liability and collision coverage gives you the confidence in knowing that you’re protected from just about anything out there.