New Mexico has only 12 people per square mile on an average. This would make you think that the New Mexico car insurance rates would be low. However, it is higher than 32 other states. The average car insurance in New Mexico is only $5/- less than the average of the United States. Surprisingly, car insurance in the Land of Enchantment is much higher than expected.
New Mexico is among the top ten rural states in the United States. In addition to that, it is one of the least populated states. Still, the average New Mexico car insurance premiums are very high.
The reason is the percentage of uninsured drivers. In 2012, as per a study by the Insurance Research Council, there were 15-26% uninsured drivers in New Mexico.
In addition to that, when you are caught driving uninsured, you aren’t penalized. You don’t even need to do the SR-22 paperwork which is necessary for almost all states.
Since New Mexico is a big place, regardless of where you live, you will have to drive around a lot. The good thing is that it is easy to drive in New Mexico. You have the Sandia Mountains at the east of Albuquerque. The I-40 and I-25 pass through the city of Albuquerque and give you access to most of the state. Since as a New Mexico resident you have to drive a lot, make sure you consider the options you have when you take auto insurance carefully.
Types of Coverage for New Mexico Car Insurance
Like every state, New Mexico has minimum coverage that you need to have when you take car insurance. The New Mexico insurance law needs the below car insurance coverage:
- Property Damage Liability: Per Accident Minimum of $10,000
- Bodily Injury Liability: Per Person Minimum of $25,000
- Uninsured Motorist Property Damage: Per Accident Minimum of $10,000*
- Uninsured Motorist Bodily Injury: Per Person Minimum of $25,000 per person and Per Accident Minimum of $50,000*
*You can reject uninsured motorist coverage if you want in New Mexico. If you plan to do so, you can send a signed paper form via mail to your insurance company. However, since as many as 25% of New Mexico drivers are uninsured, it is best that you have uninsured motorist coverage. That way if you are in an accident with someone without insurance, your insurance company will cover your expenses. Other than that, most of the requirements across states are the same. We can help you to choose the best car insurance in New Mexico as per your needs.
In addition to underinsured and uninsured motorist coverage, you can also opt for collision coverage, comprehensive coverage, auto liability coverage, personal injury protection, and medical payments coverage. Your insurance premiums will vary as per the coverage you opt for.
Factors that Determine Car Insurance in New Mexico
Auto Insurance rates vary as per the city in New Mexico. Placitas, Mesilla Park, and Tucumcari, in general, have the lowest car insurance premium rates. Corrales, Bernalillo, and Albuquerque have the highest car insurance in New Mexico . But along with your location, there are many other factors too that are taken into account when you get your insurance quote. Factors like the safety features of your car, your driving record, etc are very important. That is why getting a quote from multiple insurers is very important.
Make sure that you check the ratings of the insurer with NAIC (national association of insurance commissioners). Their ratings are unbiased so you don’t have to worry about worrying if the agency has created fictitious positive reviews online. Nor will you have to make your decision based on reviews of a few irate customers who may have had bad experiences.
As you can see, New Mexico auto insurance rates are high when you compare it to the population. In fact, it is high even when you compare it to most of the states in the country. There isn’t much you can do about it. However, with a bit of analysis and with our help, you can find the most appropriate car insurance for your vehicle and still save a few hundred dollars. You can also make sure that by spending a little more now; you are assured of being covered in case of an unfortunate accident in the future. You can also check the best car insurance companies to decide the best one for you.