Packaging Your Auto Insurance

Many companies let you package auto insurance with additional insurance policies such as homeowners insurance, renters insurance, or boat insurance to help you save money. Brian Sanchez knows how to navigate New Mexico’s numerous insurance companies to help you find insurance packages that fit your needs and help lower your premiums.

Types of Automobile Insurance

Auto Insurance

New Mexico law requires people who drive in New Mexico to pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car and pays other people’s medical expenses when you are at fault in a covered accident.

Liability Insurance

Liability insurance doesn’t pay to repair or replace your car or to treat your injuries. Consider buying other types of coverage – such as medical payments, collision, and comprehensive – to pay for these expenses.

Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver’s costs if you’re in an accident. Other drivers could sue you to collect the difference. Consider buying more than the basic limits to protect yourself financially.

Collision Coverage

The cost of repairing or replacing your car after an accident. You will only receive the amount of your car’s actual cash value, minus your deductible. Actual cash value is the market value of a car like yours without damages.

If you still owe money on your car, your lender will require you to have collision and comprehensive coverages.

Comprehensive Coverage

The cost of replacing or repairing your car if it is stolen or damaged by fire, vandalism, hail, falling objects, or an event other than a collision. Comprehensive coverage also pays for a rental car or other temporary transportation if your car is stolen. Your policy won’t pay for an auto theft unless you report it to police. Payment is limited to your car’s actual cash value, minus your deductible.

Uninsured/Underinsured Motorist Coverage

Your expenses from an accident caused by an uninsured motorist, a motorist who did not have enough insurance or a hit-and-run driver.

There are two types of uninsured motorist/underinsured coverage: The Bodily injury portion can pay for medical bills, lost wages, pain and suffering, disfigurement, and permanent or partial disability. The property damage can pay for auto repairs, a rental car, and damage to items in your car. There is usually an automatic $250 deductible.