New Mexico Car Insurance: A Quick Guide to Requirements for Residents

Despite its location in the desert New Mexico is home to a thriving economy and quickly growing population. This growing population means more drivers on the road, and more drivers means that there is a greater need for car insurance than ever before. Residents are urged to find out all they can about state requirements prior to purchasing an insurance policy. For complete information regarding car insurance, New Mexico consumers can contact the New Mexico Public Regulation Commission in Santa Fe by calling 1-888-4ASK-PRC or by visiting their website at: http://www.nmprc.state.nm.us/

NM requires that all of its drivers purchase at least the minimum level of liability insurance for their vehicle. Liability will pay for the damages suffered by the other driver and their passengers in an accident for which the insured is responsible. Minimum levels of liability coverage per the state government are twenty five thousand dollars for medical expenses for a single occupant, fifty thousand dollars for the combined medical expenses of all of the occupants of the vehicle and ten thousand dollars for any property damage resulting from the accident, including repairs to the victim’s vehicle and any other public or private property that may have been affected.

As medical expenses and repair costs can quickly rise above these limits, it is strongly recommended that the consumer purchase greater than the minimum level of liability. In addition, it is strongly suggested that every driver carry comprehensive coverage for their vehicle. For vehicles purchased with an auto loan this may already be a requirement. Comprehensive coverage will pay for damages to the vehicle following an accident caused by either the insured or a factor over which the insured had no control (such as inclement weather or the local wildlife).Should the cost of repairs exceed the value of the vehicle as stated in the Kelley Blue Book the car will be totaled and the owner awarded the full cash value of the car. For those cars whose value is below the balance remaining on their lien a driver may have the option of purchasing gap insurance. Gap insurance is meant to cover the gap between the amount due on the lien and the amount paid by comprehensive insurance.

Not all states require liability insurance on their vehicles; consequently, it is suggested that all drivers purchase an uninsured motorist policy; this is not required by the state, however. Uninsured motorist coverage will pay for damages suffered by those who are involved in an accident with these uninsured individuals as well as those who are the victims of a hit and run. Without this insurance the driver will often end up having to pay their repair and medical expenses out of pocket and then spend years in court trying to get their money back from the person responsible.