What to Know about Car Insurance

in New Mexico

Facts about Car Insurance in New Mexico

If you own a vehicle in New Mexico, you are required by law to have insurance. All car insurance policies in this state must include liability insurance, which can cover other people’s injuries and property damage if you are responsible for an accident. Your policy must also include uninsured motorist coverage unless you have specifically turned it down in writing. Coverage for injuries sustained by you or your passengers and damage to your own vehicle is optional.

More New Mexico car insurance facts

  • There are approximately 45,000 vehicle accidents in New Mexico every year.
  • Of these, about 70% result in property damage only while 30% involve injuries as well.
  • On average, collisions in this state cost $19,678 per accident.
  • New Mexico drivers collect about $863 million in insurance claims per year.

Average Cost of Car Insurance in New Mexico

Residents of New Mexico pay an average of $1,201 per year for car insurance. This is lower than the national average of $1,311. Insurance companies will offer you quotes based on factors such as your vehicle’s year, make, model, and trim and information about you, including your driving history, age, occupation, and sometimes even your credit score. Comparing quotes from a variety of insurers lets you be sure that you are getting your coverage at a good price.

Average Cost of Car Insurance Per Year

average cost of car insurance in new mexico

Why Choose an Independent Agent?

  • Independent agents provide trustworthy, personalized service.
  • Your local insurance professional can assist you with all of your coverage needs.
  • These agents work for you, not an insurance company, so they can shop for the best rates.

Find an independent agent in New Mexico

My previous car insurance was going up in price, so I decided to research online to find more information about policies and pricing. I came across TrustedChoice.com, so I gave them a call. They were able to point me into the right direction, and I was able to find exactly what I needed.

five star review Mia of Hobbs, NM Consumer Affairs

What Does Your Car Insurance Policy Cover? 

In New Mexico, all car insurance policies are required by law to include liability insurance and, frequently, uninsured motorist insurance.  Coverage for your own vehicle through collision and comprehensive insurance is not required by the state, but is nearly always required by dealerships if you are leasing your vehicle and by lenders if you are still paying for your car. You can expect a typical auto insurance policy in New Mexico to include the following:

  1. Liability coverage: Covers third-party injuries and damage if you cause an accident. Your policy must include at least $25,000/person and $50,000/accident in bodily injury coverage, and at least $10,000 in property damage coverage. 
  2. Uninsured motorist coverage: Covers your property damage and medical treatment if you are injured in an accident caused by an uninsured or underinsured driver. This coverage is technically required in NM, but you may opt out if you do so in writing.
  3. Collision coverage: Covers damage to your vehicle if it is damaged in a collision, regardless of fault. It can also cover damage for other driving mishaps, such as if you if you overturn your vehicle while making a sharp turn. 
  4. Comprehensive coverage: Covers the cost to repair or replace your vehicle if it is lost or damaged in a non-collision event such as a flood, hailstorm, tornado, wildfire, or structure fire, or if it is lost due to vehicle theft. 
  5. Medical payments coverage: Covers the cost of medical treatment for you and your passengers if you are injured in a collision, regardless of fault. This coverage is sometimes referred to as personal injury protection, or PIP, and it is optional.

If you currently owe more for your vehicle than it is worth, you may want to ask your insurance agent about gap insurance. This coverage can provide an added layer of protection in the event that your vehicle is totaled. 

Top Insurance Companies That Support Independent Agents in New Mexico

There are currently 146 independent insurance agents in New Mexico who are ready to help you find the right car insurance policy. Independent agents are free to work with several different insurance providers, so they can acquire a variety of customized auto insurance quotes that you can review and compare together. Let a local independent agent help you find the most competitively priced policy to meet all your coverage needs.

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Why Go Independent When Looking for Car Insurance?

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  • Pay less for more coverage
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