Motorists can get cheap auto insurance rates in New Mexico for both state required minimum liability only and full coverage policies, as average premiums are below the US average. This state has one of the highest uninsured drivers ratio in the country at 21.8% which is nearly twice higher than the national average. This can lead to higher insurance claims and premiums as insurers cover damages of policyholders caused by uninsured drivers, who don’t contribute to the premium pool. Uninsured Motorists Coverage should be a key part of your policy when you have 1/5 chance of being involved in an accident with a driver without insurance coverage.
New Mexico Vehicle Insurance Requirements
Here are the minimum liability coverage requirements;
- $25,000 for bodily injury per person.
- $50,000 total for bodily injury per accident.
- $10,000 for property damage.
According to the official website, you will not be able to register a vehicle without a valid policy with at least above limits, unless the records are already found by the MVD. You will receive a non-compliance notice if you were found uninsured. Not providing proof of insurance in 30 days may lead to suspension of the vehicle registration.
Vehicle owners should bear in mind that an insurance policy serves a purpose beyond mere legal compliance. It serves as a crucial source of financial aid and security in the face of unexpected accidents. In the absence of adequate liability car insurance coverage, these accidents can escalate into legal complications. Being uninsured could lead to the burden of covering damages to both third parties and your own vehicle out of your own pocket.
Roads in the Land of Enchantment are generally in poor condition that increases the chances of accidents. So, motorists may benefit from adding Collision and Comprehensive coverage to their Liability auto insurance coverage to be protected against damages they may suffer due to bad road conditions like pothole damage.
Vehicle Insurance Rates in New Mexico
The average premium for a minimum liability only coverage is $346 in New Mexico and it is $276 cheaper than the national average. The average full coverage vehicle insurance premium is $1,591 and it is $423 cheaper than the national average. Although affordability is a relative term, these rates are affordable and cheaper than most states in the country.
Cheapest Car Insurance Companies in New Mexico
Which state you live in is very important in terms of rates you get charged. There isn’t much you could do about it but you can shop around to find the cheapest provider in your area. This could save you some money and, in that sense, below most competitive insurers are worth a try at your next renewal.
- State Farm
- Farm Bureau
- Geico
- Allstate
- Central Insurance
Also, you may spend a little bit more or less than the state average depending on which city you live, although the price difference isn’t large among cities of NM. The least and most expensive cities for vehicle insurance are moderately either side of the state average. The above companies are cheaper in most cities.
Auto Insurance Albuquerque, NM
It is by far the largest city in the Land of Enchantment with a population of 550,000. The Albuquerque Metropolitan area includes the city of Rio Rancho, Bernalillo, Placitas, Corrales, Los Lunas, Belen and Bosque Farms with a population of over 900,000. In Albuquerque, the average car insurance prices are about 20% higher than the state average. Albuquerque city accommodates 1/4 of the entire state’s population. Consequently, it’s likely exerting an influence on the overall average premiums in NM, potentially skewing them towards Albuquerque’s own average.
New Mexico Vehicle Insurance and Driving Facts
- Automobile insurers in this state must offer a minimum Uninsured Motorist Bodily Injury coverage of $25,000 per person and $50,000 per accident as well as Uninsured Motorist Property Damage coverage of $10,000. However, these coverages can be rejected in writing. Considering the very high ratio of drivers without insurance in NM, it may be a good idea to keep UMC. Uninsured Motorist coverage essentially takes the place of liability coverage that should have been taken by an at-fault uninsured driver.
- New Mexico is one of the top ten states with the highest ratios of drunk driving issues in the country.
- According to Forbes, auto insurance rates increase by 53% on average in NM when you have a DUI conviction on your driving record.
- New Mexico also reports the highest rates of fatal vehicle accidents involving a distracted driver. So, it is no surprise that this state has one of the worst drivers in the US.
- Another fact that may be taken into account when calculating car insurance premiums is that New Mexico drivers travel 19,157 miles a year on average and it is the third highest average annual mileage in the country.
- The average credit score in NM is 699 and it is one of the lowest in the country. Credit score is one of the significant factors taken into account when auto insurance premiums are calculated. Unfortunately, having a bad credit is as bad as having a DUI on your driving record in this state as you may see similar vehicle insurance premium increases.
- At least, seat belt usage in NM is only slightly below the national average. But it has a worrying downward pattern, while most states have a year over year increase in seat belt usage.
Albuquerque has one of the highest auto-theft figures in the country. Again, Comprehensive coverage would be handy here to protect you against auto-thefts, vandalism and other damages out of your control. A full coverage vehicle insurance policy can be very helpful in NM and therefore motorists should shop harder to get it before they give up and go for the basic liability only coverage.