New Mexico Car Insurance
Having car insurance in New Mexico provides you with financial protection, keeping you from having to pay for bodily injury and property damage costs resulting from an accident. All drivers in New Mexico are required to have liability insurance, which covers the expenses for the other party involved in an accident that you are at fault for. Liability insurance does not cover your expenses, so you may want to consider additional coverage, such as collision, comprehensive, and uninsured motorist insurance. Also, the required minimum amount of coverage may not be enough, so to keep from having to pay out of your pocket for any expenses that may exceed your coverage, you may want to consider additional liability coverage.
Required Coverages in New Mexico:
- Bodily Injury Liability Per Person:$25,000
- Bodily Injury Liability Per Accident:$50,000
- Property Damage Liability:$10,000
Failure to obtain the minimum amount of liability insurance coverage will result in the suspension of your vehicle registration, and you will be required to surrender your license plates to the New Mexico Department of Motor Vehicles until you are able to provide proof of insurance. Failure to do so will result in criminal penalties.
Determining Your Rate in New Mexico
The Insurance Information Institute provides statistics showing the national average cost for liability insurance to be $474, but liability insurance in New Mexico averages at $435. However, this is the state average, so what you pay for auto insurance rates in New Mexico will most likely be different.
Your rate will be decided based on several factors, including how old you are, your sex, your marital status, the type of vehicle you drive, your daily commute, where you live, your driving record, and your credit score. Studies have shown that these categories can be used by insurance companies to determine how much of a risk you are to insure. Things like having a high credit score, a good driving record, and living in an area with a low number of reported traffic accidents lower your risk level, therefore lowering your rate. Each company places a different amount of importance on each factor, so you will find a variety of prices when you compare car insurance quotes in New Mexico.