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Affordable car insurance is well within your reach in New Mexico. Whether you’re a resident or planning to move there, you can find vehicle coverage that fits your budget. Learning about the insurance market, state laws, and key providers of economical policies can help you to select the policy that works for you. If you’re searching for cheap car insurance in New Mexico, keep reading.
What Is Economical Car Insurance in New Mexico?
Economical car insurance in New Mexico relates to the affordable policies that can financially protect motorists in the event of an accident. There are a variety of insurers providing competitive rates. A typical New Mexico insurance policy will expect the policyholder to pay a monthly premium in addition to a deductible that covers a portion of the amount needed when the insurance claim is made.
Usually, New Mexico motorists pay less for their car insurance here when compared with other states. The average car insurance cost in New Mexico is $550 a year for a minimum liability policy, according to ValuePenguin. On average, you will be paying approximately $46 per month as your premium. But if you shop around, you can find cheaper insurance!
What Are the Liability Insurance Requirements in New Mexico?
Despite how inexpensive you want your policy to be, you will need to meet New Mexico’s minimum coverage requirements for liability insurance. These minimum requirements are mandated by the state so that drivers have enough coverage to settle claims in the event of an at-fault accident. Liability insurance requirements include:
- Bodily injury per person: You’re expected to have $25,000 of coverage per person for bodily injuries. What this means is that your insurer will pay up to $25,000 for the costs incurred by another person who was injured due to an accident you caused.
- Bodily injury per accident: This requires each driver to have an insurance policy that guarantees to pay up to $50,000 for the personal injuries of everyone affected by the accident. Basically, this will be the maximum amount an insurer pays for all the bodily injury claims in a single accident.
- Property damage per accident: Each driver is expected to have liability coverage of $10,000 to settle property damage claims.
Key Providers of Cheap Car Insurance in New Mexico
Among New Mexico insurance providers, State Farm offers the lowest rates in car insurance. The average price of minimum liability coverage is $360 per year with a $30 monthly payment. Additionally, GEICO, USAA, and Progressive are insurance providers that offer reasonable rates in this region.
How To Get Cheap Car Insurance in New Mexico
Here are a few ways you can find cheap car insurance in New Mexico:
Research Insurers
It’s important to find the right company to get the best deal and avoid having to pay more. Use the following tips to find a reliable insurer:
- Check the company’s financial strength with the Standard & Poor (S&P) rating. This rating will help you to figure out if an insurance provider can afford to make a payout to you.
- Check with the Better Business Bureau (BBB) for the company’s reputation for dependability.
- Look at customer reviews online, speak to people who have policies with your preferred brands, and get their feedback on customer service.
Check Out Laws and Policies
Look at the New Mexico state laws, such as the laws on liability insurance that regulate what your insurance policy should cover as discussed in the previous section. In addition to liability insurance, there are several other optional types of insurance, such as:
- Collision: This insurance type covers the cost of damage to your vehicle as a result of a collision with another vehicle or another object, such as a fence.
- MedPay: MedPay, which is also called Medical Payments, is available in New Mexico. This type of insurance is similar to Personal Injury Protection (PIP). It covers the policyholder’s medical treatment costs.
- Comprehensive: This policy covers damage to your vehicle due to natural events, such as hail, floods, vandalism, or any other event that is not a collision.
- Underinsured/Uninsured motorist: This policy will pay your medical bills if you’re ever injured by an underinsured or uninsured driver.
- Roadside assistance: A roadside assistance policy will help you get back on the road in the event of a mechanical failure or a breakdown.
Find the Best Bargain
Shop around until you find the lowest rate among your preferred insurance brands and policies. Do so by comparing quotes and looking for corporate promotions and discounts, like those for safe driving and automatic bill payment. Select a policy from a trustworthy insurance company that offers you the lowest rate but gives you essential coverage. Depending on your budget, look for a policy that includes MedPay, collision, and comprehensive to cover your injuries and vehicle repairs.
Additionally, look at the factors that could increase the cost of your New Mexico car insurance, such as DUI citations and other violations. Insurance companies will raise rates for most offenses, but if you have a tendency to exceed the speed limit, your premium is unlikely to be raised as much as it would be in other U.S. states.
Keep Looking for the Best Deal
Make sure to check every six months for a cheaper policy, even if you’re happy with your current one. You can also work with your insurer to switch to a cheaper alternative that better suits your needs. Use the following checklist to do so:
- Is the alternative policy cheaper than mine?
- Do I trust the insurance company?
- Does my insurer offer a similar rate with another policy?
- Can I switch to a cheaper policy with my insurer?
- Are there any discounts I can get by maintaining a clean driving record?
- Are there any new discounts I can get from my insurer?
- Can I change my behavior to get a cheaper rate?
Now you have the information you need to find an affordable insurance policy. Take your time and don’t give up until you find the best cheap car insurance in New Mexico.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
