Home Insurance and Car Insurance in New Mexico

Homeowners Insurance Coverage Options in

Home insurance isn’t a legal requirement in New Mexico, but if you’re buying your home with a mortgage loan, your lender will probably require it. Most home insurance policies sold in New Mexico cover a stable set of named perils and circumstances, and it’s important to understand the limitations to your home insurance coverage before something happens. Typical policies will include most of the following types of home insurance coverage:

• Dwelling coverage protects the structure of your home, including walls, roof, windows and doors
• Personal property coverage helps cover losses that occur inside your home, like furniture or appliances—even when damaged or stolen outside the home.
• Liability coverage can defend and protect you from lawsuits if a person is injured on your property. It also helps protect you if you damage another person’s property
• Guest medical protection coverage pays medical expenses when someone is injured on your property.
• Coverage for other structures, such as detached garages.
• Additional living expenses coverage helps pay for lodging, food, laundry and other services if your home is rendered uninhabitable by a covered loss.

When buying home insurance, pay close attention to whether the coverage is for the actual cash value or the full replacement value. The former will only cover losses up to their current value and factors in depreciation. The full replacement value coverage, by comparison, will pay to completely replace the loss—even if materials costs have gone up.

Common Causes of Loss in

Like many other states, most of the hazards faced by New Mexico homeowners tend to be weather-based. Common causes of loss in the state include:

• Wildfires
• Earthquakes
• Theft and property crime
• Flooding

Additional Coverage Options Recommended for Homeowners

New Mexico home insurance policies tend to cover your dwelling, personal property, liability, medical payments and living expenses due to loss of use. Additional coverage you may want to consider can include:

• Flood insurance: Flooding isn’t covered under most standard home insurance policies. Flood insurance can be purchased through your insurance company or through the National Flood Insurance Program (NFIP).
• Sump pump coverage: If your sump pump and pipes clog, it can lead to costly damage. This type of insurance isn’t usually included in a home insurance policy but you can buy an endorsement.
• Additional coverage for personal property: In some cases, your base home insurance policy may prove insufficient for paying the cost to replace or repair expensive items, such as jewelry, artwork or large electronics. If you own any of these items, you may want to buy additional coverage to protect them.

Our Home Insurance Partners in

SelectQuote makes shopping for a home insurance policy simple. We partner with some of the most trusted home and auto insurance companies who operate in states like New Mexico, comparing their rates and coverages to find the right coverage for your situation at a price that fits your budget.

What is the average home insurance cost in ?

Average home insurance rates in New Mexico can vary based on several details. The value of your home, its location, and potential hazards such as flooding or wildfire can come into play. According to the Insurance Information Institute, New Mexico homeowners insurance on average costs $1,017—just $200 shy of the national average.² In fact, the average home insurance cost in New Mexico for SelectQuote customers is $93.12 a month.**

Homeowners Insurance Discounts in

If you’re concerned about the cost of your New Mexico home insurance, you’re not alone. Fortunately, there are plenty of discounts available. In addition to lowering your premiums through a higher deductible, you can look for the following discounts:

• Discounts for filing fewer claims
• Customer loyalty discounts
• Discounts for installing home security systems
• Discounts for installing home security systems
• Bundled policy discounts for home and auto insurance coverage

Auto Insurance Laws and Requirements

New Mexico, like all other states, requires drivers to carry a minimum amount of insurance coverage to protect them from financial liability in the event of a car accident. This minimum liability coverage falls into two categories: bodily injury liability and property damage liability.

Bodily injury liability coverage pays for expenses related to injuries or death of another driver or pedestrian when you’re at fault for an accident. Property damage liability coverage helps cover expenses related to property damage such as vehicles, homes, buildings and more, if you’re found to be at fault for the accident. Legal minimums for liability coverage are as follows⁴:

• Bodily injury liability coverage: $25,000 per person and $50,000 per accident
• Property damage liability coverage: $10,000 per accident

Note that these limits may not pay for all damages incurred as a result of an accident, so you may want to purchase coverage that increases these limits.

In addition to liability coverage, you may be asked to purchase additional types of auto insurance coverage depending on whether your vehicle is leased or financed. Such insurance includes:

• Uninsured motorist coverage, which can cover your medical expenses if the other driver is at fault and has no insurance.
• Underinsured motorist insurance, which helps pay the difference if you are in an accident where another driver is at fault and doesn’t have enough liability coverage.
• Medical payments coverage, which can help pay for medical or funeral expenses for you or your passengers if hurt in an accident.
• Collision coverage, which pays for expenses to repair or replace your car if it’s been damaged in an accident (regardless of fault).
• Comprehensive coverage, which can repair or replace your vehicle if it’s been stolen or damaged by an animal, fallen object, storm or vandalism.

All data on average expenditures is provided by the Insurance Information Institute.

Teen Driving Laws

New Mexico requires all drivers, regardless of age, to be covered by auto insurance. You can add your teen driver to your existing policy or have them shop for their own. It’s typically cheaper to add them to your policy.

New Mexico requires drivers under the age of 18 to go through a graduated license program to get their license. The graduated program begins with a learner’s permit and a driver’s education program. Teen drivers must drive with adults who are 21 years of age or older and complete 50 hours of supervised practice. The teen must then maintain a clean driving record for 90 days before obtaining their provisional license.

The provisional license requires that the teen pass the Department of Motor Vehicles (MVD) road skills exam and not drive with any passengers in the vehicle under the age of 21 who is not an immediate family member. There are also restrictions on when a driver may drive (between midnight and 5 a.m. unless heading to school work, religious functions or in a medical emergency). More information on the graduated license program can be found at the New Mexico MVD’s education portal.

Car Registration Information

Registering your vehicle in New Mexico requires you to provide several documents, including an odometer statement, purchase agreement (or dealer’s invoice) and a manufacturer’s certificate of origin (MCO). The MCO must be original.

Much like other states, you’ll also be required to provide proof of insurance, specifically the minimum liability auto insurance policies. You can do this with your current car insurance card, a copy of your existing policy or a letter from the insurance carrier attesting to your coverage.

What is the average car insurance cost in ?

What you pay for car insurance rates in New Mexico depends on several factors, but chief among them are your driving history and the type of car you drive (sports cars and luxury SUVs are more expensive to insure, for example). That’s not the only consideration, however. Other common influences on your car insurance premiums include:

• Your credit rating
• Where you live
• Your car’s annual mileage
• How often and what you use your car for
• Your deductible when filing claims

The average car insurance cost in New Mexico for SelectQuote customers is $223.64 per month.***

Car Insurance Companies in

SelectQuote provides New Mexico residents with quotes from leading auto insurance companies. We can compare rates and discounts from a wide range of trusted insurance carriers in just minutes. This allows us to help you save time and money when buying insurance coverage.