As a consumer, you likely have many questions about insurance --specifically which types of insurance you need and which ones are unnecessary.
While the information presented within this section addresses the most common questions about insurance, your local independent insurance agent or broker can answer your specific questions and make sure you have the insurance coverages you need.
Insurance 101 -- IIABA, in conjuction with Trusted ChoiceSM, has prepared this section to answer frequently-asked questions ranging from "What is insurance and what kinds are there?" to "How do I file a claim?"
Quick-Read Consumer Guides -- IIABA and Trusted ChoiceSM have prepared easy-to-use information about a variety of insurance-related topics including auto, home, life, health and business. Use these comprehensive consumer guides to learn more about possible liabilities and how to protect yourself.
After an Accident Brochure -- One of IIABA's most popular and frequently-requested brochures is available in an easy to use printable brochure (.pdf) version. Print and fold as many as you would like and keep them in your vehicle's glove compartment so you know what to do in the event you are involved in an auto accident.
Each state requires that you have certain types of coverage with minimum liability limits. The insurance industry recommends that your bodily injury liability limits be at least $100,000 per person and $300,000 per occurrence.
New Mexico law requires drivers to have auto liability insurance. New Mexico is considered a traditional tort state, which means if you are in an accident with another driver his or her insurance company covers your losses or you have to file a lawsuit to recover disputed damages for injuries and property. New Mexico law mandates that auto insurance policies provide the following:
Liability- Minimum Required:
$25,000 per person for bodily injury, $50,000 per accident for bodily injury and
$10,000 per accident for property.
Uninsured/underinsured motorist coverage. Insured motorists who are concerned about being in an accident with an uninsured motorist can purchase this optional coverage to ensure their losses are covered.
Medical Payments Coverage or MPC. This optional coverage pays for reasonable expenses you and your passengers incur because of injury in a motor vehicle accident, regardless of fault. Coverage amounts available vary from company to company. You may wish to purchase it if you do not have health insurance, or to supplement any health insurance you do have.
Collision & Comprehensive. Collision insurance pays for damages to your car caused by another vehicle, an object or a rollover. Its not required by law, but most lenders require collision coverage for financing. Comprehensive insurance protects you against damage to your own car from perils like fire, theft, glass damage, hail, wind, flood or vandalism. Comprehensive isn’t required either. If you have an older car, consider dropping these types of coverage to save on insurance premiums.
If you can afford more insurance, carrying more than the mandatory minimum requirement is recommended. Think about the amount of insurance you’ll need when you need it the most. Families should sit down with their insurance agent or company representative to determine the right amount for each individual and family.
Click here for
What If I'm Hurt in An Auto Accident?
Glossary of Auto Insurance Terms,
Ways to Save,
Teens Shopping for Auto Insurance,Auto Insurance Basics and
New Mexico Insurance Division.
New Mexico's annual average auto insurance premium for liability plus comprehensive and collision in 2002 was $860. (Latest data from National Association of Insurance Commissioners)
