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New Mexico Auto Insurance

New Mexico auto insurance laws are fairly straightforward. But there's probably room to save on your premium.

This guide:

Explains New Mexico car insurance regulations and requirements

Describes how New Mexico auto insurance rates are decided

Shows you how you can save money by comparing multiple quotes

See How Much You Could Save:

Save $300-400 or more with discount rates from all major auto insurance carriers, as well as local companies in New Mexico.

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New Mexico car insurance laws

New Mexico is a tort state, which means that drivers are financially responsible for the property damage and personal injury they may cause during an auto accident. Most drivers fulfill this financial responsibility by purchasing New Mexico auto insurance.

New Mexico auto insurance laws require liability coverage of 25/50/10. (That's $25,000 per person for injuries you cause to the other party, up to $50,000 for all, and $10,000 for any damage that you cause to the other driver's car and/or property.)

However, these are only minimums, and higher levels of protection are strongly recommended, especially if you have assets to protect. After all, accidents can get very expensive, especially if injury is involved.

New Mexico auto insurance companies will also offer optional coverages such as medical payments, collision, comprehensive, and uninsured and underinsured motorists coverage.

You may want to consider purchasing any or all of these coverages, especially uninsured and underinsured motorist coverages. These policies help cover the cost of your injuries and property damage should you be in an accident with a driver with inadequate liability insurance.

If you are a New Mexico resident, you may be able to save on your premium by visiting Electric Insurance. Their policies are available only to those drivers whose credit and driving records could be described as being at least good.

After comparing rates at ComparisonMarket, get a quote from Electric to see if you qualify.

How New Mexico auto insurance rates are set

For better or for worse, the price of New Mexico auto insurance is decided by the behavior of the state's drivers as a whole. New Mexico auto insurance companies take the cost of insuring New Mexico drivers (this includes what they pay out for injury and damage, legal and administrative fees, and the cost of prosecuting insurance fraud) and divide it up among the drivers.

But the cost isn't spread around evenly. Instead, New Mexico car insurance providers calculate how much a certain "category" of driver costs them, and decide premiums based on that. The "category" you're in is decided by your driving record, your age, where you live, and the kind of car you drive, among other things.

Of course, not all auto insurance providers use the same categories and calculations, so the same set of characteristics (yours!) will be seen very differently by different insurance companies. And they'll quote you different rates.

What this means for you, as an New Mexico driver, is that you need to shop around. It's the fastest easiest way to save on an New Mexico auto insurance policy.

Where you can get New Mexico auto insurance quotes.

The following web sites will help you find New Mexico car insurance quotes: (these links will open in a new window)

ComparisonMarket is the easiest and most accurate quotes comparison service. This is the site where you'll save up to four hundred bucks.


Netquote provides rates directly from local agents, who can help you set-up a more personalized quote, and provide additional service.

Electric Insurance a discount insurance provider for good drivers

Geico - a great service, especially for those who can't get insured elsewhere. Be sure to complete the entire quote form!

To speed things up, you may wish to have some of the information needed for an online quote ready before you begin.

More NM car insurance advice and help

If you want more help designing your NM auto insurance policy, read our guide to setting safe and reasonable car insurance coverage levels. It contains loads of money-saving tips, too.

To find out more about New Mexico auto insurance laws and regulations, visit the state's official website of the New Mexico Insurance Division.

Want to learn even more?

Take our quick auto insurance course, and learn the step-by-step to get the most out of your auto insurance policy for the least amount money.

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This wrebsite provides general information for educational purposes only and is not intended to be legal advice. We make no guarantees as to the validity of the information presented. Your particular facts and circumstances, and changes in the law, must be considered when applying insurance law. You should always consult with a competent auto insurance professional licensed in your state with respect to your particular situation.