New Mexico Auto Insurance Coverage


Every state in the United States makes its own laws and regulations. Each state draws up a set of rules and regulations for the citizens of the state. These laws have to be followed all the time. Anybody found violating them will be penalised. You should make it a point to learn all the rules of your state. You should also ensure you know the rules of a state even if you are planning to drive through for a short time. Ignorance of the law does not prove your innocence.

The Stat of New Mexico has adopted some rules and regulations too. One of the most basic laws is financial responsibility. You have to prove that you are financially sound or have assets enough to take care of the damages if you are in an accident. Financial responsibility can be established in two ways. You can pay the state treasurer sixty thousand dollars and get a surety bond. This shows that you have enough finances to pay for damages in an accident. You can also go in for auto insurance provided by an auto insurance company. This is the most common option.

The auto insurance that you purchase must satisfy the amounts and norms set by the government. Minimum liability is the most common form of insurance. Minimum liability covers the bare minimum as advised by the government. The State of New Mexico has made it mandatory for its citizens to get a 25/50/10 coverage. This stands for twenty five thousand dollars for bodily injury per person and fifty thousand dollars per accident for bodily injury ensuring you cover at least two persons. Any property damage will have to be paid out of the ten thousand dollars for property damage. However, this is only the bare minimum. If you were in an accident, the damages would probably exceed these amounts. It is always a good idea to file for more amount than the minimum liability. The insurance industry recommends a hundred thousand dollars per person for bodily injury and a total of three hundred thousand dollars per accident.

Another form of insurance which is to be noted is the Uninsured or underinsured motorist’s protection. The State of New Mexico has the highest number of uninsured motorists. Around twenty nine percent of the population do not have auto insurance. If you are involved in such an accident, you are not sure if you will be paid for the damages. In such a scenario, this insurance coverage really helps. This kind of coverage is very common in the New Mexico.

You can also choose to go in for comprehensive and collision damage coverage. These insurance policies mainly cover physical damage. If you have had an accident and your car needs some money spent on it, collision damage will cover it. Any repair work done on the car will be covered by collision. In some cases, the car might have to be replaced and this will be covered by collision. Comprehensive policy covers any physical damage caused to your without you being in an accident. These include damage due to rain or hail or even theft and vandalism.