New Mexico Auto Insurance
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New Mexico Auto Insurance Requirements
New Mexico law requires drivers to purchase liability insurance. Liability insurance covers the associated expenses for bodily injury and/or vehicle repair when a driver causes an accident. Minimum liability amounts in New Mexico are 25/50/10 meaning that up to $25,000 in bodily injury expenses are covered in an accident involving a single occupant, and up to $50,000 in combined expenses is covered when the accident involves multiple occupants. Ten thousand dollars will go towards the costs of repairing damage to the other person’s vehicle, signage, fences, etc.
Higher coverage limits
This sounds like a lot, but when one considers the ever-escalating costs of medical care and vehicle repair, it may make sense to purchase higher coverage limits. Other non-mandatory auto insurance options drivers should consider include Comprehensive/Collision. Usually offered as a bundle, Comprehensive/Collision covers repairs made to the insured’s vehicle when it is involved in an accident (Collision) or when it is damaged by something beyond the driver’s control such as vandalism and weather (Comprehensive).
Repair costs and blue book value
Should repair costs exceed the vehicle’s blue book value however, the insurer may choose to declare the vehicle “totaled” and issue a check to the insured equivalent to the vehicle’s blue book value. If this amount is insufficient to pay off the balance of the vehicle’s loan, optional gap coverage, when purchased, pays the difference.
Uninsured/Underinsured Motorist coverage
Also not required by New Mexico but is highly advisable is optional Uninsured/Underinsured Motorist coverage. This pays for damages resulting from a hit-and-run accident, or caused by a driver that does not have insurance. It also pays the difference when repair costs are greater than the at-fault party’s auto insurance coveages. Drivers without this type of auto insurance have to pay out of pocket and then pursue the at-fault party in court to recover those costs.
New Mexico Public Regulation Commission
New Mexico has created its own laws regarding auto insurance. Anyone interested in learning more can visit the New Mexico Public Regulation Commission online at http://www.nmprc.state.nm.us or in person the Santa Fe office. Assistance is also available by phoning 1-888-4ASK-PRC.