A minimum amount of auto insurance is required in New Mexico. Drivers must insure their vehicles with at least $25,000 in bodily injury liability coverage per injured person to a maximum of $50,000 per accident, as well as $10,000 of property damage liability coverage. Beyond that, all insurance coverage is optional. To help you design a policy, the agents at Reid Insurance Group in Lovington, NM, explain what you should look for when buying auto insurance.

What to Consider When Buying Car Insurance

The Right Types of Coverage

How risk averse are you? If you have little risk tolerance, purchase the maximum amount of insurance coverage possible. For the utmost protection, raise your policy limits above the bare minimum and buy collision coverage—which pays to repair the car if you're at fault in an accident—and comprehensive coverage, which covers non-collision damages from hazards like fire, flood, theft, and vandalism. If you are more risk averse, you can keep coverage and policy limits at a minimum to reduce monthly premiums.

An Appropriate Deductible

The deductible is the amount you must pay out of pocket on a claim before the insurance company starts to contribute. With your level of risk tolerance still in mind, set a deductible you feel comfortable with. The lower the deductible, the less you pay in the event of an accident, but the more you pay each month. If you have little risk tolerance, choose the lowest deductible amount available.

The Lowest Possible Price

Once you have set your limits, deductible, and coverage types, ask the insurance agent if you qualify for any discounts. Insurers offer lower premium rates for people who have good credit, a clean driving record, completed a driver safety course, and good grades. You can also save money by bundling the auto insurance coverage with a homeowners or life insurance policy. The more you buy from one provider, the less you pay for each policy.

A careful examination of your auto insurance options using the information above should help you save money and select the right policy. For expert advice, contact one of the experienced insurance agents at Reid Insurance Group. For nearly seven decades, they have been Lea County's most trusted independent agency. Visit their website or call (575) 396-3645 to request a quote.