Each state requires that you have certain types of coverage with minimum liability limits. The insurance industry recommends that your bodily injury liability limits be at least $100,000 per person and $300,000 per occurrence.
New Mexico law requires drivers to have auto liability insurance. New Mexico is considered a traditional tort state, which means if you are in an accident with another driver his or her insurance company covers your losses or you have to file a lawsuit to recover disputed damages for injuries and property. New Mexico law mandates that auto insurance policies provide the following:
Liability - Minimum Required:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $10,000 per accident for property
Uninsured/underinsured motorist coverage. Insured motorists who are concerned about being in an accident with an uninsured motorist can purchase this optional coverage to ensure their losses are covered.
Medical Payments Coverage or MPC. This optional coverage pays for reasonable expenses you and your passengers incur because of injury in a motor vehicle accident, regardless of fault. Coverage amounts available vary from company to company. You may wish to purchase it if you do not have health insurance, or to supplement any health insurance you do have.
Collision & Comprehensive. Collision insurance pays for damages to your car caused by another vehicle, an object or a rollover. Its not required by law, but most lenders require collision coverage for financing. Comprehensive insurance protects you against damage to your own car from perils like fire, theft, glass damage, hail, wind, flood or vandalism. Comprehensive isn't required either. If you have an older car, consider dropping these types of coverage to save on insurance premiums.
If you can afford more insurance, carrying more than the mandatory minimum requirement is recommended. Think about the amount of insurance you'll need when you need it the most. Families should sit down with their insurance agent or company representative to determine the right amount for each individual and family.