New Mexico Auto Insurance Basics


New Mexico is the fifth largest state in the United States. It is in the south western region of the United States. It is also the state with the thirty sixth largest population in the United States. Every state has its own set of rules and regulations written to govern its motorists. It is the job of the government to draw up rules ensuring the safety or the people on the motorway. New Mexico has a set of rules and regulations. If one wishes to driver on its roads, they must be familiar with each of these laws.

The state of New Mexico follows the tort system of rules. According to tort system, in the even of an accident, a person has to be found responsible for the accident. This person is responsible for the damages caused during the accident and he and his insurance company has to pay for the damages caused. Each state has laws regarding minimum insurance coverage. This varies from state to state. In the state of New Mexico, the minimum liability has been defined. It is mandatory to have at the least twenty five thousand dollars per person for bodily injury and a maximum of fifty thousand dollars for more than one person.  It is also mandatory for the person to have minimum liability of ten thousand dollars for damages to property. Minimum liability is the most basic of all insurances. A motorist must and should have an insurance policy for these amounts. Not having insurance and driving is an offense and will attract penalties. However, many times it has been found that minimum liability might no cover costs of damages. It is better to get policies for larger amounts so as to be able to cover damages incurred.

It is not uncommon to find people filing for uninsured or underinsured motorist coverage. This is an option for the motorists who are concerned they might be involved in an accident with a person with no insurance coverage. If such an event happens, this insurance will cover their losses. You can also choose to go in for Medical Payments coverage. This is bought if you do not have a medical insurance cover. This covers any medical costs you might in cur in an accident irrespective of whose fault it was.

You can also choose to go in for physical damage coverage. There are mainly two types of physical damage coverage. They are collision and comprehensive coverage. Collision coverage pays for any damage that might have occurred to your car in an accident. It includes any repair cost that might have to be undertaken. Some times the car will be in a really bad shape and they might have to replace it. Collision covers replacement as well. Comprehensive coverage, on the other hand, will cover any damage that might occur to your car when it is not in an accident. This includes theft or even vandalism. Your car might be damaged by the rain or hail. Comprehensive policy covers these problems. You might even hit a deer and qualify for comprehensive coverage.