How Does Auto Insurance Work in New Mexico?

Car insurance plays a significant role in a claim made after a vehicle crash. The same applies if you reside in the state of New Mexico. Like most other states, vehicle owners are required to purchase minimum amounts of liability insurance coverage. New Mexico follows the traditional fault-based system. This means that the person who was responsible for causing the accident will be responsible for any resulting damage stemming from the accident such as injuries, vehicle damage, lost income, and so on.

Options for Compensation

If you are the victim of a car accident caused by someone else, you are entitled to file a claim with your own insurance company, provided this is covered under your policy. You can also pursue a claim with the responsible driver’s insurance company, or you can open a personal injury case in civil court against the driver who caused the accident.

Fault or No-Fault?

The difference between the fault system and the no-fault system states is that certain options are not available to no-fault states. For example, in a no-fault state, you should have personal injury protection plans of your own in order to take care of medical bills and out of pocket expenses irrespective of whether the car accident was your fault. Furthermore, you cannot pursue a personal injury lawsuit against the person who caused the accident in a no-fault state unless your injuries are extremely severe. However, if you live in New Mexico, you don’t need to worry about this. If you have been injured in a car accident that wasn’t your fault, you should likely pursue a civil personal injury case; contact an ABQ auto accident lawyer to help you through this process and recover compensation to help you pay for your injuries, property damage, and lost wages.

Liability and Insurance

In New Mexico, you need to purchase car insurance, and this is not negotiable. To give you an idea of the type of coverage you need to have, you need to have a minimum liability coverage of $25,000 per person, $50,000 per accident, and $10,000 for property damage after an accident. This covers bodily injury or death of one person in an accident that was caused by the driver of the vehicle.

So ultimately, liability coverage will take care of medical bills, property damage bills as well as any other out-of-pocket expenses incurred by drivers, passengers, and pedestrians who were injured as a result of the car accident. If you are involved in a serious car accident, having more coverage would protect you even further. Once your coverage has been exhausted, your personal assets could be at risk. Having higher coverage helps protect your personal belongings and assets. Liability coverage also kicks in for family members driving the vehicle. This insurance also covers you if you have an accident while driving a rental car.

If you live in New Mexico, and you do not have vehicle insurance, you probably face suspension of your vehicle registration. As per the New Mexico law, the uninsured vehicle owner must hand in their vehicle’s registration and licensing to the MVD. This must be done no later than ten days after receiving the notice of suspension of registration letter. If this notice is not adhered to, the uninsured driver faces criminal penalties.

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