As a requirement by New Mexico car insurance law, all registered vehicles in New Mexico must be covered by car insurance. This is to protect you from financial burden brought by car accidents.

New Mexico Car Insurance Requirements

If you are a New Mexico driver, the law requires you to purchase liability insurance for your vehicle to cover costs associated to property damage and injuries resulting from accident that you may cause. The following are minimum limits of New Mexico liability insurance:

  • $25,000 for death or injury per person per accident
  • $50,000 for total death or injury if multiple people are injured in an accident
  • $10,000 for property damage.

Optional Coverage

In addition to purchasing liability coverage, you may also consider other optional car insurance coverages. Optional coverages will give you more protection if you are involved in an accident. Most car insurance companies in New Mexico offer the following optional car insurance coverages:

  • Collision – Insurance that helps pay for damages to your car in the event of traffic accident
  • Comprehensive – Insurance coverage that helps you cover damages to your car if you are involved in any type of accident
  • Medical payments – Insurance coverage that helps you pay for your medical costs
  • Towing and labor.

Note: New Mexico car insurance laws do not require you to purchase Collision or comprehensive coverages. However, these two insurance policies are required if you intend to purchase your car through a lease agreement or car loan.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage will help cover the cost of expenses involving a driver with inadequate insurance cover or no insurance cover at all. New Mexico car insurance laws require you to purchase these insurance coverages as part of your insurance policy.

Proof of Insurance

State agencies in this state use an electronic database to monitor or verify the status of all registered cars’ insurances. If the database shows that your car is not insured, you will receive a letter notifying you to comply with New Mexico’s car insurance requirements. If you fail to comply with this letter, you will face registration suspension.

Reinstate Your Registration

If you fail to comply with New Mexico’s car insurance requirement and your car registration is suspended, you can get it reinstated. You will be required to obtain valid car insurance and request your car insurance provider to update your information to the database. In this event, you will be required to pay a $30 reinstatement fee.

New Mexico Motor Vehicle Insurance Plan

If you are considered a high risk driver, you may find it difficult finding a car insurance provider to insure your car. But good news is that you can apply for insurance coverage through New Mexico Motor Vehicle Insurance Plan. Insurance coverage through this plan is a bit expensive because of higher risks involved. New Mexico Motor Vehicle Insurance Plan is one of the state plans that form the Western Association of Automobile Insurance Plans (WAAIP). To apply for insurance cover through WAAIP, contact their customer care personnel at (415) 765-6767.

Consumer Assistance

New Mexico’s Office of Superintendent of Insurance is the office that helps the public with issues related to car insurances such as car insurance complaints and frauds. If you have a dispute with your car insurance company, you can file your complaint online through this body’s website or contact the Consumer Assistance Bureau hotline (505) 827-4601.

Determining Your Car Insurance Rates

Most car insurance companies use several factors when determining the price of your car insurance premiums. While shopping for car insurance, keep in mind that the following factors will be used to determine your rates:

  • Your driving record
  • Your car’s Make, Model and Year
  • Your credit card score
  • Deductibles.

Car Insurance Discounts

A great way to save on New Mexico car insurance is to take advantage of several car insurance discounts. When shopping for your car insurance, inquire whether your insurance provider offers the following discounts:

  • Good student
  • Anti-theft
  • Safety device
  • Multi-car.

These discounts can help you save huge sums of money. But remember that the best way to get cheap insurance is to maintain a clean driving record.

Most Stolen Cars in New Mexico

If your car is always a candidate for theft, you are more likely to pay higher car insurance rates. This is the 2013 list of the most stolen cars in New Mexico according to www.nicb.org:

  1. Ford Pickup (Full Size)
  2. Chevrolet Pickup (Full Size)
  3. Honda Civic and Honda Accord
  4. Dodge Pickup (Full Size)
  5. Toyota Camry
  6. GMC Pickup (Full Size)
  7. Jeep Cherokee/Grand Cherokee
  8. Chevrolet Pickup (Small Size)
  9. Ford Pickup (Small Size).