Save on your auto insurance policy. How to reduce your premiums. New Mexico.

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Auto insurance. New Mexico.

Car insurance information

Car insurance is required in New Mexico. New Mexico law sets the minimum levels of liability coverage that motorists must maintain:

$20,000 bodily injury or death for one person per accident;
$50,000 per accident for bodily injury to or death of two or more people;
$10,000 property damage maximum per accident.

   Liability auto coverage refers to your ability to pay for accidents that you cause. In other words, if you are involved in an accident and are shown to be at fault, and you only carry liability auto coverage, your insurance will not cover any personal injury or damage to your own vehicle that resulted from the accident. It is important to realize that carrying minimum liability auto insurance, although it does meet the legal requirements, may not be enough to cover the costs of an accident. It is a good idea to consider more extensive coverage, if possible.

Uninsured Motorist Coverage

   Not all drivers on the road have insurance. And even if they do, it might not be enough to cover all your medical costs if the driver who hits you has only minimum liability coverage. Uninsured motorists insurance coverage can pick up the slack. With more than 15% of the population driving without insurance, and hit-and-run accidents on the rise, this is good coverage to have, especially if you live in state that have a high number of uninsured drivers like New Mexico (24%).

How to reduce your rates

Shop around. Each insurance company has unique financial goals and costs. As a result, it isn't uncommon to find rate differences between companies for the exact same coverage. The cheapest insurance may not provide you with the degree of coverage you need. It is a good idea to discuss your coverage with your agent or insurance company.

Multi-Policy Insurance. Various insurance companies offer various discounts if you insure more than one vehicle on a single policy, or if you have your home insured with the same company that insures your vehicle(s).

Select higher deductibles. The higher your deductible is, the lower your premium. However, you must be careful not to get in accidents with a higher deductible, as this is the amount that will come out of your pocket before your insurance company starts paying for the rest of the damage to your vehicle.

Eliminate duplication. Your coverage may overlap in some areas, such as medical, collision, and uninsured motorist property damage. Ask your agent or broker to explain your coverage and advise you if you are duplicating coverage.

Special discounts

   Ask each agent or company if they offer special discounts. Here are some discounts you should look for:

Good Driver Discount. Most insurance companies offer discounts to drivers who have not had accidents or received tickets in the last 3-5 years.
Good Student Discount. Insurers have found that students who are responsible enough to earn a B average or better tend to be more responsible drivers.
Safe Vehicle Discount. Many companies offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes.
Senior Discount. Many insurance companies offer discounts to drivers over 50.
Low Mileage. The fewer miles you drive the less chance you have of getting into an accident. Insurers recognize this fact and generally offer discounts for low mileage drivers.
Rural Discounts. It is almost always cheaper to insure a vehicle in a rural area. Most accidents happen in larger cities, which means if you are a city-dweller, expect higher rates. This also applies to areas where car theft is most common.
Anti-theft Devices. Devices or systems that deter theft or vandalism also lower claims costs. Some companies offer discounts for anti-theft devices.