New Mexico Auto Insurance Requirements

New Mexico’s government gives drivers in their state options when it comes to insuring their vehicles. There is a minimum coverage limit that is in place to insure that every driver on public roads has a regulated amount of financial security in case of an accident. It is important to get and maintain insurance so that you can be covered for the damage amount in case you are at fault in an accident.

The different options available to New Mexico drivers are liability insurance, cash deposit, or self-coverage. Liability coverage minimums are set at $10,000 minimum property damage coverage, $20,000 personal injury coverage with a maximum of $50,000 total injury coverage per accident. The cash deposit must be no less than $60,000 which must be surrendered to cover costs of damages incurred in an accident deemed your fault.

It is important to keep in mind that these amounts of coverage are only a minimum in the state of New Mexico. If you are in an accident that is anything more than a minor accident, the damages could substantially exceed the limits of this coverage. The majority of insurance experts agree that if you are covered for any less than $1 million in combined coverage then you are not properly insured. A serious accident could potentially add up to several hundreds of thousands of dollars, leaving you personally liable for any amount beyond your coverage limits.

The cost of insurance premiums is the deterrent for many drivers when it comes to purchasing more that just the minimum insurance coverage. It is extremely important that you make sure you are getting the best deal for your coverage. Shop around and get quotes from several different insurance companies before making your final purchase. Remember that there may be discounts that may only be offered if you mention them.