As with most states, the New Mexico state requires one to have the minimum auto insurance coverage to be able to register and drive a car in New Mexico.
- $25,000 for bodily injury per individual
- $50,000 per accident for death or total injury if several people have been hurt
- $10,000 per accident for property damage
- $25,000 minimum per individual and $50,000 for every crash for uninsured motorist bodily injury
- 10,000 minimum per every accident for uninsured motorist property damage
One may decide not to take the uninsured motorist coverage. To do so, you are required by the state law to return a signed form to your insurer by mail. However, as some studies suggest one out of four motorists in New Mexico state drives without insurance. Consider this fact before dropping your uninsured motorist coverage. This insurance will help protect you from such drivers if you get into an accident with a hit-and-run motorist or with someone without insurance.
Visit: New Mexico Motor Vehicle Division to learn more about the state’s auto insurance minimums.
Most people will always opt for extra insurance coverage than the required state minimum to be able to protect themselves if an accident occurred.
These optional coverages include:
Collision & Comprehensive coverage:
Collision coverage caters for damages to your vehicle caused by another car, a rollover or an object. The state does not require this insurance, but most insurers require it for financing. Comprehensive coverage protects you against destruction to your car from hazards such as theft, hail, wind, vandalism, fire, or flood. Comprehensive isn’t state required either. If your car is older, you can opt to drop these two coverages to save on premiums.
Medical Payments Insurance:
This elective coverage caters for reasonable expenses that you and your passenger may incur due to injury in a car accident, regardless of the fault. Coverage amounts for this insurance vary from one insurer to the next. You can choose to buy it if you have no health insurance or to complement any medical insurance cover you may have.
Having good coverage means having more security. When things get messy on the road, they could take a toll on you. By opting for cheap auto insurance, you are opening up yourself for a possible catastrophe. If worst came to worst and you caused an incapacitating accident, bodily injury damages might exceed your coverage by far, leaving you to take care of the gap in coverage.
What Determines Car Insurance Rates?
Several factors determine the price you will pay for your car insurance premium in New Mexico. They include:
- Your driving record
- Your credit score
- Your car’s year of manufacture, model and make
- Your deductibles- High deductibles equals lower premiums
How Can One Lower Their Auto Insurance Rates?
Ask about the discounts- An excellent way to save on car insurance in New Mexico is to exploit the discounts offered to you. When comparing insurance quotes, ask about common discounts such as good student, good driver, safety device, and anti-theft. Other ways to get discounts include having several policies with the same insurer like homeowners or renters insurance and being with the same insurer for a while.
Take a safe driver course offered by DMV
Inform your insurance company when you finish your college or get married- You are more likely to get lower rates for having a college degree or being married. Call your insurer and inform them about your status and ask how it affects your rates.
Improve your credit score- Though it will take you some years to do it, lifting your credit score will impact your financial well-being across the board.
Buy a car with high safety ratings- Larger cars often score highly in safety tests, meaning you might get a small price reduction for owning one. Some providers also offer lower premiums for alternative-fuel and hybrid vehicles.
New Mexico Car Insurance Plan
Although all drivers in New Mexico have to show financial responsibility by having car insurance, some motorists find it hard to find an auto insurer willing to offer them coverage due to their claims or driving history.
The New Mexico Motor Insurance Plan is meant to assist high-risk motorists in obtaining the legally required car insurance. To apply to this plan, contact [WAAIP] Western Association of Automobile Insurance Plans on (415) 765-6767.
What Happens if One Does Not Have Insurance?
Vehicles that have no minimum liability coverage are bound to have their registration suspended. According to the New Mexico Mandatory Financial Responsibility Act, the owner of an uninsured motor vehicle must return the car registration as well as the license plate to MVD in ten days time after being issued with the notice of suspension letter. Failure to do so will subject the car owner to penalties prescribed by state law, including criminal penalties.
How Can One Reinstate Their Vehicle Registration?
To get back your vehicle registration, you have to obtain adequate coverage and have your insurer update your insurance data on the state Insurance Identification Database [IIDB] site http://www.driveinsured.com/. You can also contact IIDB through their toll-free call center number: (866) 891-0665 for more information. After IIDB has received your proof of insurance, your car registration will be qualified for reinstatement the following working day. You will pay a reinstatement fee of $30.00. It is advisable to wait for at least 24 hours after your insurance agent has updated the database before approaching the MVD field office for the reinstatement of your vehicle registration.
As part of fulfilling their financial responsibility laws, all registered vehicles in New Mexico must have car insurance. Car insurance is meant to protect the driver from unfortunate and costly accidents. Make sure you have the state required minimum coverage. But, if you can manage to pay for more coverage, it is recommended that you carry more than the state minimum requirement. Sit down with your insurer or insurance agent to determine the correct amount of insurance you require. Having enough coverage will give you the peace of mind that you so desire.