Car insurance in New Mexico is more than just a legal obligation—it ensures you are protected against various risks unique to the state’s roadways. 

• Extreme Weather Conditions: New Mexico's unpredictable weather brings risks like flash floods, hailstorms, and even high winds, which can cause significant vehicle damage. 
• Rural and Urban Roads: From winding rural highways to busy city streets in Albuquerque or Santa Fe, New Mexico offers diverse driving conditions that require comprehensive protection. 
• High Rate of Uninsured Drivers: About 21% of drivers in New Mexico are uninsured, one of the highest percentages in the nation. Protecting yourself with uninsured/underinsured motorist coverage is essential. 

New Mexico is an “at-fault” state, meaning that the driver who is found to be at fault for an accident is responsible for covering the resulting damages. When it comes to auto insurance, the minimum required coverage will vary from state to state. For New Mexico, that minimum coverage includes: 

• Bodily Injury Liability: Coverage for others’ medical costs when you’re at fault. Minimum limits are $25,000 per person and $50,000 per accident. 
• Property Damage Liability: Coverage for others’ vehicles or property when you’re at fault. Minimum requirement of $10,000 per accident. 
• Uninsured/Underinsured Motorist (UM/UIM) Coverage: Split into bodily injury and property damage. Coverage for both your vehicle and injuries if the other party doesn't have sufficient insurance. Limits for both UM bodily injury and property damage reflect the liability limits chosen for others. 
  • While this isn’t required in New Mexico, it is typically added to policies. You can reject it, but you must do so in writing. If you wish to change the limits to be lower than your BI and PD Liability limits, you also must do so in writing. 
  • In New Mexico, drivers can “stack” their UM/UIM. This means that you can either stack the coverage for the number of cars you have on your policy, or you can stack multiple cars across multiple policies (typically if you have a policy for yourself and a separate policy for a family member under your name).

It’s important to note that the above coverage only pays for the other party if you’re found to be at fault for the accident. To protect yourself and your vehicle, additional coverage is required. 

At Goosehead Insurance, we recommend exploring these additional coverage options to ensure you and your vehicle are fully protected: 

• Medical Payments (MedPay) Coverage: Helps with medical expenses for you and any passengers after an accident, regardless of who is at fault. $2,000 per person. 
• Collision Coverage: Helps pay for damages to your vehicle caused by a covered accident based on your deductible. 
• Comprehensive Coverage: Helps pay for non-collision damages to your vehicle caused by a covered accident based on your deductible. 
• Roadside Assistance: Helps pay for the cost of towing your vehicle if it cannot be driven due to an accident or breakdown. 
• Rental Car Reimbursement: Helps pay for the cost of a rental car while your vehicle is being repaired after a covered accident. 
• Increase Liability Limits: Some drivers see the benefit of increasing their liability limits to avoid costly out-of-pocket expenses if they’re found to be at fault. 

This isn’t a full list of options, and some drivers may have more specific or unique circumstances, such as a highly customized car. At Goosehead, we specialize in tailoring policies to our clients to fit any need, so it’s best to bring up your situation to one of our agents. 

What you pay for your premium includes more than just your coverage selections. Car insurance premiums in New Mexico vary based on a range of factors: 

• Driving Record: A clean record results in lower premiums, while accidents and violations will increase rates. 
• Type of Vehicle: Vehicles with higher safety ratings may have lower premiums, while high-end models usually cost more to insure. 
• Location: Car owners in urban areas might see slightly higher premiums due to traffic congestion and theft potential. 
• Age and Experience: Younger, less experienced drivers often face higher rates, while seasoned drivers may enjoy savings. 

Policies that meet the minimum amount of coverage cost, on average, are around $500 annually. Policies that have more coverage cost, on average, around $2,200 a year. 

New Mexico drivers can take advantage of several strategies to lower their car insurance costs without sacrificing coverage: 

• Bundle Policies: By combining car insurance with homeowners or renters insurance, you can receive multi-policy discounts. 
• Safe Driving Discounts: Maintaining a clean driving record will often qualify you for reduced premiums. 
• Install Safety Features: Equipping your car with anti-theft devices and advanced safety systems can earn discounts. 
• Multi-Vehicle Discounts: Insuring multiple vehicles under the same policy can help you save. 
• Review Your Coverage Regularly: Partnering with an insurance agency like Goosehead allows you to review and adjust your policy to prevent overpaying. 

At Goosehead Insurance, we make protecting New Mexico drivers our top priority. Here’s what sets us apart: 

• Tailored Comparisons: We leverage our network of leading carriers to find coverage options that perfectly fit your lifestyle and location. 
• Expert Advice: Navigating New Mexico’s insurance requirements can be complex, but our agents simplify the process. 
• Ease and Convenience: From getting a quick quote to managing claims, we handle the heavy lifting so you don’t have to. 
• Ongoing Support: Insurance needs change over time, and we’re here to ensure your coverage evolves with you.