Owning a car comes with freedom and a fair share of financial responsibility as well. And speaking of financial obligation, car insurance is an investment you can’t do without if you own a vehicle in New Mexico. In the Land of Enchantment, all motorists are required to purchase auto insurance with the following requirements:
- Bodily injury liability to protect you when accused of causing physical harm to third parties. The minimum required is $25,000 per person and twice the amount for an accident involving multiple persons.
- Property damage liability (PDL) to protect you when you cause physical damage to other people’s properties. The least amount required is $10,000 per accident.
- Uninsured motorist coverage that protects you from unpaid property damage and bodily damage you sustain after colliding with an uninsured motorist. However, you can reject this coverage in writing.
Having seen the basic auto insurance required, the next question is: do you need more than the basic auto insurance? Family Insurance Associates in Ruidoso, NM, is here to set the record straight.
Why do you need more than basic car insurance coverage?
Meeting the state-required minimums is excellent, but you will need more than the basic coverage for optimal protection. Here are the reasons:
Basic insurance has a low limit
In case of a severe accident, the state-required car liability limits are insufficient. For instance, the $25,000 required by New Mexico won’t get you very far. Medical expenses alone can quickly exceed $30,000. Add legal costs to that amount, and you could be in serious trouble.
That said, we recommend motorists increase their liability limits. Besides, we recommend umbrella insurance if you want broader coverage.
Basic insurance covers other people
You will notice that state-required coverages are all about other people, leaving you and your car uncovered. As such, you must consider other coverages like comprehensive, collision, MedPay, among other coverages to protect your family, yourself, and the car.
Are you shopping for auto insurance in Ruidoso, NM, and its environs? Please get in touch with Family Insurance Associates for an affordable quote.