New Mexico Auto Insurance

New Mexico insurance companies do not have to cover members of your household if they are not listed on the policy.  In fact, insurance companies may refuse to cover household members if they have a legitimate reason for doing so.  Any exclusion will be listed in the exclusion section of your policy along with other conditions which will release the insurance company from the responsibility of paying a claim.  If the insurance company requires you to list all household members on the policy, failure on your part to do so may result in that individual having no insurance coverage.  It may also result in lack of financial protection should the uninsured individual get into an accident with your vehicle.  If you do not comply with the company’s request, they can deny the claims on any persons not included on the policy.  You will still be liable for any damages or injuries caused by an accident the individual is responsible for.

The state of New Mexico is a Tort state.  Persons responsible for an accident will be required to pay all the damages which result from the accident they caused.  This will include all medical bills, loss of income, suffering, and vehicle repairs.  Your insurance company may encourage you to purchase more than the minimum auto liability insurance required by the state of New Mexico.  If a car is financed, you will most likely be required by the lending entity to carry comprehensive and collision coverage on the vehicle. 

Your personal credit history will play a part in determining your premium rates, and insurance services you are offered.  Your credit history may also be a factor in how you make your payments such as monthly or yearly as well as determining an insurance risk score.  Other things the insurance company will take into consideration is your driving record, age, marital status, gender, the age and condition of your vehicle, and the area where you live.  Maintaining a good driving record and paying your bills on time may reduce your premiums.

The average insurance premium in New Mexico was about $737.00 as of 2006.  New Mexico was ranked as having the 29th highest premium average in the United States.  There are 19 state approved insurance companies doing business in the state of New Mexico.  They are AAA, AIG, Dairyland, Encompass, Farm Bureau, Farmers, Financial Indemnity, GEICO, Hartford, Liberty Mutual, MetLife, Progressive Direct, Safeco, State Farm, Titan Indemnity, Travelers, USAA, and Victoria Fire.

New Mexico does not have state wide laws in place against talking and texting while operating a vehicle on New Mexico roads.  Local laws may be passed for various locations regarding cell phone use and texting.  Sante Fe and Albuquerque have laws in place with regards to cell phone use and texting while driving which include hands free devices.  If you are caught using these devices while driving in Sante Fe you will be fined $60.00.  The only exceptions are in the case of an emergency.  Albuquerque does make an exception for hands free devices.  Getting caught texting or talking on a cell phone in Albuquerque will cost you $100.00 the first time and $200.00 the second.

Things that can help you reduce the cost of your insurance premiums include a clean driving record, the type of vehicle you choose to drive as well as the number of miles you drive per year.  The fewer miles you put on your vehicle each year, the lower your chances are of being involved in an accident.  The reduction in accident risk can translate into a reduction in premiums.  Furthermore, a clean driving record reduces your risk of an accident. 
It will be more expensive to insure a luxury car or a sports car.  You should also keep in mind that insurance premiums will be higher on vehicles which are a high priority for thieves.  The cars that made the top 10 stolen vehicles in New Mexico are:

1. 1997 Ford F150
2. 1992 Chevrolet C/K 1500 Pickup (full size)
3. 1993 Jeep Cherokee/Grand Cherokee
4. 2001 Dodge Ram Pickup
5. 1987 Toyota Camry
6. 1994 Honda Accord
7. 1997 Ford F250
8. 1993 Ford Ranger
9. 1986 Oldsmobile Cutlass
10. 1999 Pontiac Grand Am

Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums along with anti theft devices like an alarm system and global positioning systems.  The area where you live will affect your insurance rates.  Things such as weather extremes, crime rates, and traffic patterns will have an effect on your premiums.  Don’t forget to maintain a good credit record as the insurance company looks at this to determine how likely you are to pay your premiums on time.  Prior accident claims will also be a red flag to insurance companies especially if there are several claims on your past record.  The amount of your deductible is also a key factor when determining insurance rates.  The higher your deductible is, the lower your insurance rates will be.