New Mexico Auto Insurance Requirements
New Mexico has stringent auto insurance laws for both private and commercial vehicle owners. Minimum auto insurance coverage requirements in New Mexico are mandated by state law and the New Mexico Insurance Division. The following minimum coverage is required on every registered vehicle, except as noted below:
(Source: New Mexico Insurance Division)
Driving without the mandatory liability insurance in New Mexico will result a $300 fine and suspension of registration. Subsequent offenses are subject to higher fines, reinstatement fees, and jail time.
The New Mexico Motor Vehicle Insurance Plan is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the AIPSO website.
Factors Influencing Car Insurance Premiums in New Mexico
Getting a quote for cheap car insurance in New Mexico requires some research and rate comparisons between different insurance companies, even though New Mexico ranks below national averages for car insurance costs. Some factors that impact insurance rates in New Mexico include:
– New Mexico is not a “no-fault” state, and does not require PIP insurance
– Vehicle repair costs are generally less expensive in New Mexico than elsewhere
– Overall accident fatality rates are lower than national averages
– A much higher percentage of uninsured drivers compared to national averages
– Auto insurance fraud
– Vehicle theft rates near national averages
The average auto insurance premium for residents in New Mexico is $1,837 in 2011; the national average is $1,790.
Tips for Obtaining Cheap Car Insurance in New Mexico
– If you’re over 55, take a state-approved defensive driving course for a policy discount
– Several insurance companies offer “pay as you drive” car insurance for low mileage drivers in New Mexico
– Maintain a good driving record
– Bind multiple policies (homeowners, life, auto) with the same provider
– Maintain a good credit score
– Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
– Discuss affinity discounts with your insurance provider
– Drop comprehensive and collision insurance on older vehicles
New Mexico Statistics
– Auto Theft: New Mexico has a relatively high vehicle theft rate, but it has been decreasing (as is the case in most states) consistently over the past few years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:
(Source: Auto Thiefs)
– Automobile Accidents: The total vehicle miles traveled in New Mexico has increased in recent years, but vehicle accident fatality rates have declined. New Mexico is above the national average in numbers of deaths in car crashes.
(Source: National Highway Traffic Safety Administration)
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