New Mexico is a tort state for car insurance purposes. When an accident occurs, one driver must be deemed to be at fault, and that person (through his or her insurance company) is responsible for paying for the damages caused.
Under state law, drivers must have third party liability insurance in place. Bodily injury liability coverage pays out on claims made by the occupants of the other vehicle for medical bills, rehabilitation expenses and lost wages. It also pays out a funeral benefit in the event the accident was a fatal one. The minimum amount of protection required by law is $25,000 to compensate a single accident victim and $50,000 to pay for all injuries and damages stemming from the same event.
Property damage liability coverage to pay for the cost of repairs to the other driver’s vehicle and any public property damaged in the accident is also required. At least $10,000 in protection must be in place.
Uninsured/underinsured motorist coverage is recommended for drivers in the state. It kicks in when the at-fault driver in an accident either does not have insurance or does not have enough coverage to pay for the damages he or she caused. When requesting quotes for coverage from different providers, be sure to ask that this add-on protection be included.