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Saturday, December 20, 2014

New Mexico Car Insurance




New Mexico Car Insurance: Simple

Guide to Auto Insurance in MN

Before you take your car out on the roads in the state of New Mexico,
you must prove to the authorities that you have the financial capability
to cover costs of all damages if you are involved in an accident.
To establish your financial responsibility, you can deposit a lump sum
of $60,000 in the state treasurer's office in the form of a surety bond
or cash. The other more popular and cheaper method of securing financial
responsibility is to buy car liability insurance.
 
The state of New Mexico requires you to buy a minimum bodily injury
liability of $25,000 per person per accident and up to $50,000 for
injuries of all people in an accident. The property damage liability is
set at a minimum amount of $10,000 per accident. This mandatory coverage
plan is referred to as 25/50/10 coverage.
 
For more information on New Mexico consumers can contact the New Mexico
Public Regulation Commission in Santa Fe by calling 1-888-4ASK-PRC or by
visiting their web site at: http://www.nmprc.state.nm.us/.
 
The state follows a tort system, which means that one of the parties
involved in the accident is guilty of causing it. The person responsible
for the accident and his/her insurance company has to pay up all the
money to cover costs of bodily injuries, property damage and any other
damages covered in the policy document.
 
If you are held responsible for causing the accident, the victim has a
right to sue you. In such a case, the minimum insurance cover may not
cover all costs. Therefore, it is better to have an insurance coverage
that is more than the minimum set by the authorities.
 
29 % of all motorists in New Mexico are uninsured. This is the highest
ratio of any state in the country. Thus, getting coverage against
uninsured and underinsured motorists is a highly recommended.
The insurance companies in the state monitor the drivers using the New
Mexico Insurance Identification Database and report any irregularities
in the insurance to the state authorities.
If you drive around the state without valid car insurance, you could
face misdemeanor charges, a fine of up to $300 and the cancellation of
your vehicle registration.
The average car insurance premium rate in the state is $1,939 in 2009.
Car insurance is mandatory and it does not come cheap. However, this
does not mean that you should pay more than what is required. Before you
buy a car insurance policy, don't forget to shop around and compare the
quotes offered by various companies.

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