It has the highest Uninsured Drivers rates (26%) in the country joint with Mississippi. It is almost twice higher than national average. You would expect these excessive numbers would push the premiums up but it appears that you can get cheap auto insurance in New Mexico. You cannot help but ask why then there are so many motorists with no coverage? This post will look into rules, limits, sources of information, quotes, and costs and ways of lowering them.
Probably the main reason why drivers shun away from buying policies is that NM is one of the poorest states in the US. On the other hand, living costs are fairly affordable in the Land of Enchantment. Limited income coupled with low cost of living can make a reasonable expenditure look more expensive than it is and it may explain the issue here.
For example, New Jersey car insurance rates are more than 50% higher than New Mexico. However, when you take into account the fact that incomes are more than twice higher there you can see that NM average premium to income ratio is much higher than NJ. In plain English, Premiums take up larger proportion of incomes in comparison to NJ, one of the most expensive states.
Uninsured Motorists Coverage should be key part of your policy when you have 1/4 chance of involving in an accident with one of them. If someone cannot afford to pay for a reasonably priced liability policy he/she cannot afford to pay for your damages and injuries. They may not care what happens but you cannot take that chance when risks are excessive.
New Mexico Law Requirements
- $25,000 for bodily injury or death per person.
- $50,000 total for bodily injury or death 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 department. You will receive non-compliance notice if you were found uninsured. This could lead to suspension of the vehicle registration.
Owners should remember that a policy is not bought only to comply with the laws. It provides financial assistance and security against unforeseen accidents. Such accidents can be legal nightmare if you don’t have sufficient liability coverage and you would have to pay own damages out of pocket as well.
When there are so many people who somehow manage to get away with not having basic third party provision we have to talk about what sort of protection you can get. We have to forget about its legal status and consider what we would get in return for premiums. Probably most people quote peace of mind as the number one benefit. Knowing that you would be compensated if something happens to your vehicle gives you peace of mind. This doesn’t mean that it takes away all worries. You will have to look after your property as best as you can regardless of having coverage for it or not. You actually have an obligation to take good care of them.
Secondly, most people are aware of their responsibilities. We know the rules; if we break we pay. If we cause injuries and damages to people the least we can do is to pay for it. It is not humanly to drive off and hope not to get caught. You can read about many benefits of car insurance policies and you will find that money isn’t the only reason people buy them. Or lack of it isn’t a good reason not to buy at least liability cover. If people understand its importance they will spare money for it.
How Much Is Vehicle Insurance in New Mexico?
You would assume that it is expensive and that is why many people cannot afford it and take all sorts of chances and risks of getting caught. It may be the case in relation to income but premiums are fairly affordable in comparison to the rest of the US.
The average premium expenditure is $723 in New Mexico and $118 cheaper than the national figure. It is per vehicle cost regardless of the type of protection. Full coverage estimate is $1,277 and more closer to national number of $1325. Motorists need to pay $554 more on average on top of $723 to upgrade to full coverage.
When the median spending is far off from the full coverage cost like this it is fair to think that perhaps the number of policyholders with it is lower than the national average of 72%. This may be because New Mexicans don’t drive expensive cars in comparison to the rest of the country. This is a fair assumption based on the information we have.
Cheapest Automobile Insurance Companies in New Mexico
Which carrier you are with and where you live are two important factors that affect prices. You may be charged as much as twice more if you are with one of the most expensive in the state. This would mean that you spend two years worth of money in one year. The figures lay the importance of searching for the most affordable companies bare.
- GEICO, $726
- Farmers, $752
- Allied, $831
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 them. The least and most expensive city are about $100 either side of the middle. The cheapest cities are; Alamogordo, Deming, Silver City, Las Cruses and Truth or Consequences. And the most expensive cities are; Rio Rancho, Belen, Bernalillo, Taos, Santa Fe, and Albuquerque. The above 3 companies are cheaper in most cities.
Auto Insurance Albuquerque, NM
It is by far the largest city in the Land of Enchantment with $550,000 population. Albuquerque Metropolitan area is the 60th-largest US metropolitan area and includes the city of Rio Rancho, Bernalillo, Placitas, Corrales, Los Lunas, Belen and Bosque Farms with population of over 900,000.
Here, prices are about 8% higher than the median figures. We have to remember that Albuquerque city alone accommodates 1/4 of all state residents and therefore it is probably affecting the rest towards its own average. The gap is probably further reduced by higher competition in the city market.