All About New Mexico Auto Insurance

Whether you have just recently moved to the great state of New Mexico or have been a long-term resident but just purchased a vehicle for the first time, it is important to know New Mexico auto insurance laws and regulations in order to ensure that you purchase a proper amount of insurance coverage for your vehicle. After all, every state in the country differs in terms of its auto insurance requirements, meaning that you are responsible for researching your state’s laws and subsequently purchasing a level of coverage that is adequate for your car to be legally operated.

The Consequences of Inadequate Insurance Coverage
In the state of New Mexico, all drivers are required to have proof of insurance on them at all times while driving. Typically, this comes in the form of a small paper certificate, which lists the policy holder’s name, the policy number, and the contact information of the insurance company. If a driver is pulled over in New Mexico at any time and fails to present proof of insurance, the driver could have his or her driver’s license revoked, the car could be towed, the driver could be issued a hefty ticket, or the driver could even spend time in jail. In addition, driving without the proper amount of insurance can lead to similar charges.

New Mexico Auto Insurance Laws
In the state of New Mexico, there are state minimums for auto insurance that are currently in place. These minimum amounts are in place for both bodily injury protection and property damage. Specifically, these minimums are $25,000 per person per accident, $50,000 per accident for bodily injury, and $10,000 in property damage for each accident. In comparison to other states, these minimums are relatively low, making car insurance rates quite cheap in New Mexico. At the same time, however, having the minimum amount may not be enough to cover all of the expenses incurred as a result of an accident, which means that some drivers will end up paying out of pocket.

Not to mention, not all drivers can get away with buying the state minimum. Any vehicle that is not paid off in full while on the road must have comprehensive and collision coverage, also known as full-coverage insurance. This covers expenses to the driver’s car in the event of an accident, as opposed to only covering the other person involved. Any driver who has a car financed or is making monthly payments on a car must have this type of insurance.

Immigration and Auto Insurance in New Mexico
Since New Mexico is a state located very close to the US and Mexico border, many immigrants to come to the states wonder about how auto insurance laws affect them. The law currently in place in the state requires that all new immigrants update their auto insurance policy at the same time that they update their license and plates. If proof of insurance is not presented at this time, the driver may be denied a United States license or new license plates for the vehicle until this proof of insurance can be obtained.

Overall, buying auto insurance in New Mexico is significantly cheaper than it is in many other states. However, even though the state minimum coverage amounts may be low, the truth remains that it is always smart to purchase as much auto insurance as one can afford. After all, it could pay off big time in the event of an accident or collision, and could save the driver a significant amount of money and hassle in the long run.