New Mexico is not a no-fault state when it comes to car insurance. Instead, it has adopted a tort system for settling claims, which means that one driver is determined to be legally responsible for the accident, and injured people can sue him or her to collect damages.
For this reason, drivers must have third party liability insurance in place. The bodily injury liability portion of the policy pays for the cost of medical bills, rehabilitation expenses and lost wages incurred as a result of the accident. Property damage liability insurance pays for the cost of repairing the other driver’s vehicle, as well as public property damaged in the accident. Public property includes sign posts, guard rails and mailboxes.
Buying the minimum level of coverage required by law may not be enough New Mexico car insurance protection if you are involved in a serious accident. Your car insurance will only pay out up to the policy limit you choose; any damages that you are responsible over this amount must be paid by you personally.
Rather than run the risk of financial ruin because of your involvement in a car accident, get quotes from a number of companies so that you can get the best rates for your coverage. Then you can buy the level of protection that you need.