New Mexico auto insurance quotes
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Protect your vehicle and loved ones with New Mexico auto insurance
With a population topping 2.1 million, New Mexico's 121,365 square miles make it the fifth largest state in terms of physical size. The state is geographically diverse, with the Rocky Mountains, Great Plains and intermountain plateau providing a variety of climate types across four seasons. These elements, which are attractive and endearing to residents, can also be deadly on the roads. In 2022, there were 467 fatal accidents on the roads of New Mexico.
Severe weather in New Mexico can result in expensive automobile damage. The state is prone to tornadoes, with an average of 10 touching down per year on the eastern plains. Severe hail is very common, with an average of 168 annual incidents of hail penny-sized or larger. New Mexico also sees an average of 70 severe thunderstorms with accompanying high winds each year, and flash floods occur frequently in the summer monsoon season. These weather issues can wreak havoc on automobiles, causing direct damage as well as impacting traffic congestion and creating damage to the roads themselves.
State-owned roads and bridges in New Mexico are in a state of deterioration due to a lack of funding for required maintenance. While the state has stepped up investment in infrastructure over the last three years, more funding is needed to restore the roadways to a level that is deemed safe for drivers. In the meantime, residents should ensure they have adequate levels of New Mexico auto insurance to cover any damages they may sustain on the hazardous roads.
Minimum requirements for New Mexico auto insurance
Drivers in New Mexico are required to have a specific level of liability car insurance coverage for their vehicles. The minimum requirements for the state are as follows:
- $25,000 in Bodily Injury or death coverage per person.
- $50,000 in Bodily Injury or death coverage for two or more people.
- $10,000 in Property Damage coverage per single accident.
Typical costs of New Mexico auto insurance
The average annual cost of New Mexico auto insurance is approximately $1,395, which is below slightly below the United States national average annual cost of $1,445.
Factors that affect New Mexico auto insurance quotes
New Mexico car insurance quotes will vary from person to person due to unique individual characteristics that impact their calculated rates. New Mexico Car Insurance companies include a variety of factors in determining the level of risk associated with each insurance application and utilize complex algorithms to determine premiums based on that risk. The following factors are the major determinants of New Mexico auto insurance quotes.
Car specifications
The type of vehicle you drive has a big impact on your New Mexico car insurance rate. New cars are typically more expensive to insure because the cost of repairing or replacing them is higher. Sports cars are generally more expensive than family cars because they are statistically more likely to be involved in a serious accident. Other vehicle information considered in setting rates includes:
- Accident rates.
- Cost of repairs.
- Purchase price.
- Safety tests.
- Theft rates.
Driver demographics
The insurance industry utilizes demographic data to help set policy rates.
- Age: Lack of driving experience causes teens to pay much higher costs than adult drivers each year. Rates drop up to 20% by age 25.
- Gender: Accident statistics show a difference in risk based on gender, so premiums may vary between men and women. Male teens have the most expensive car insurance coverage out of all demographic groups.
- Marital Status: Married drivers are statistically safer than single drivers, causing fewer accidents and filing fewer claims. Married couples can also take advantage of multi-car and multi-policy discounts when bundling several insurance policies under the same company.
Driving and insurance history
Annual mileage is considered when setting rates. Those with long commutes or a history of high-mileage driving are riskier than those who don't drive as much, so they typically pay more. Drivers with a clean record receive better rates and usually qualify for a safe driver discount, which can help save money. Accidents and moving violations (including speeding tickets and DUI citations) can raise your rates by 30% or even more. Insurers also look at your claims history when setting premiums. Three claims in a three-year period are considered a higher insurance risk, resulting in increased rates or even a policy non-renewal.
New Mexico auto insurance coverage options
Vehicle owners in New Mexico are only required to obtain liability coverage, but there are additional coverage options to consider in order to protect your vehicle and passengers.
Collision Coverage
This type of coverage is required for vehicles that are leased or financed. It pays for repairs or replacement of your vehicle following an accident with another vehicle or structure, regardless of who is at fault.
Comprehensive Coverage
Comprehensive Coverage is also mandatory for leased or financed vehicles. This coverage pays for damage to your vehicle caused by an event other than a collision, such as a flood, fire, theft or vandalism.
Uninsured Motorist Coverage
New Mexico law requires that every car insurance company offer this coverage to their auto insurance clients for liability limits of $25,000 per person, $50,000 per accident and $10,000 for property damage. This type of New Mexico auto insurance covers medical bills, lost wages, car damage, pain and suffering, and applicable funeral costs for you and your passengers if you are involved in an accident caused by an uninsured or underinsured driver.
This information is intended for general informational purposes only and is not intended to constitute legal advice.