As a “fault” state, New Mexico law says that when motorists are at-fault for a car accident, they are also responsible for covering the costs associated with the event. For that reason, the state requires all drivers to possess a minimum amount of liability insurance — a type of coverage that protects you from paying out-of-pocket for medical and property damage expenses. Dedicated to helping policyholders better understand their auto coverage needs, Alcorn Insurance Agency in Chama, NM, explores the basics of this type of protection.  

Guide to Liability Insurance for Motorists   

Bodily Injury

In New Mexico, drivers are required to have a minimum of $50,000 in liability insurance to cover the costs associated with the physical harm or death of others. If only one individual is injured, the coverage should provide at least $25,000 in funds.

These funds are typically used to pay for medical expenses, legal fees, lost income, pain and suffering damages, or funeral costs other parties face. If you are sued for injury-related damages, this coverage can also offer you some legal defense protection.

Property Damage

In some cases, at-fault parties may not hurt others, but instead harm other assets — such as vehicles, buildings, or road signs. The property coverage included with auto liability insurance is used to finance expenses related to the repair or replacement of these assets. In New Mexico, drivers should have a minimum of $10,000 of property damage liability coverage.

What Liability Insurance Doesn’t Cover

Liability insurance can give you peace of mind if you are an at-fault motorist in a collision. However, it won’t protect you from any damages or costs you experience. So, if you total your vehicle or break your arm in an accident you cause, you will have to pay out-of-pocket.

Fortunately, you can get the financial protection you need by expanding the terms of your auto insurance policy. Collision coverage, for example, will help repair or replace damaged personal property or cars in at-fault accidents. Comprehensive coverage can provide even more assurance since it pays for vehicle damage expenses caused by noncollision incidents, such as theft, vandalism, or weather.

Whatever coverage you use your auto policy for, keep in mind that funds won’t apply automatically. You must first pay the deductible before insurance funds kick in. Typically, the lower your premium, the higher your deductible.

When it comes to optimizing auto liability insurance and other types of coverage, the insurance agents at Alcorn Insurance Agency provide comprehensive expertise and affordable rates. As a local, independent insurance agency in Rio Arriba County, this team will deliver personalized assistance to every policyholder, while making sure the needs of the modern consumer are met. Call (575) 756-2197 to request a quote and protect against on-road risks.