The Minimum Amount of Coverage Allowed by Law

New Mexico car insurance requirements state that all drivers must carry at least a minimum amount of liability auto insurance. The minimum amount allowed by law is known as a 25/50/10 plan. What this means is that you must have at least $25,000 in bodily injury liability coverage per person and up to $50,000 in bodily injury liability coverage per accident if two or more people are injured. You must also have at least $10,000 in property damage liability coverage.

New Mexico uses a tort system which means that whenever an automobile accident occurs someone must be found to be at fault for causing the accident. The person that caused the accident is responsible for any damages that arise. This is why auto insurance is necessary, your auto insurance provider will assume financial responsibility up to the limits stated in your policy.

A 25/50/10 plan is enough to comply with New Mexico car insurance requirements but it is often a good idea to get additional coverage. Although uninsured/underinsured motorist coverage is not required by state law it is an option that a lot of people choose. This type of coverage would provide bodily injury coverage to you or your passengers if you are involved in an accident where another driver is at fault but that driver does not have sufficient coverage.

Many people also choose to carry more liability coverage than the minimum 25/50/10 coverage. People will choose to carry higher limits because it is easy for medical bills and property damage to exceed those limits.

For anyone that drives a newer or more expensive vehicle collision and comprehensive coverage is also an option. Obviously the more coverage you get the more expensive it is going to be the taking of additional coverage may be necessary to make sure you're protected financially in a worst-case scenario type of situation. Collision and comprehensive coverage is not required by law but if you are leasing a vehicle or borrowing money to purchase one you may be required to carry this type of coverage by the leasing company or your lender.