Almost every state has laws stating that people have auto insurance, but the actual regulations regarding auto insurance vary from state to state - so the type of coverage that you require depends on the state in which you live in.

Even if there are no laws, it is highly recommended that you have some form of cover; otherwise you may end up paying out huge amounts of money in the event of an accident, or even losing your home, in a worst-case scenario.


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You Can Save Money On Your New Mexico Auto Insurance

Everybody in New Mexico is looking for ways to save money these days. We try to save money on everything from groceries to gas to electricity. It isn't easy. We are back to the age of clipping coupons, running errands all in one area in the same day to conserve gas, shutting off lights to keep the electric bill down and hanging out at home a little more playing scrabble and renting movies instead of shelling out $9 per person to see a movie we hope turns out to be ok.

It doesn't have to be that way with auto insurance. If we are smart shoppers, we can save some money. In order to do this there are a few things that everyone who is looking to buy insurance or having to renew insurance should research and explore. Not every one of these will save each individual or family money, but it is definitely worth doing some comparing, both on the net and by calling some trusted agents in your area.

Deductibles can make a difference in your premiums. It is important to add everything up and see if you have a low deductible and the premium is higher because of it, will you be saving or losing money - especially if there is an accident you have to pay the deductible for.

There are many parts of an insurance policy and depending upon how old the car you own is and the condition it is in - and how often and how far you drive it - you may not need a policy with all the bells and whistles that a new Cadillac or Mercedes would need. Also, if you use the car mostly for leisure, it is important to let your insurance company know because it could save you a good deal of money.

Good credit can save money on insurance. The insurance companies assume that if you are responsible with your bills, you will probably be responsible with the other things in your life, like your car and your home, so they take those things into consideration.

Parking in your garage, living in a low crime or rural area, having an alarm and either owning your own home or living in the same place for a number of years show stability, thus helping keep your premiums stable. Also, putting your homeowner's and auto insurance on the same policy can sometimes save you money depending upon the company you purchase from.

There are other ways to lower your premiums, but these are the most prevalent. Check with an insurance professional for other ways to keep your premiums down. There are a lot of ways that unless we look below the surface, we just don't know about.

Car Insurance Q & A

Question: If someone borrows my car and crashes it, does my insurance apply, or does theirs?
Answer: Generally speaking, the liability follows the car, so your insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits.

Question: If a child goes to college with mom or dad’s car, are they covered under the parents’ personal auto policy?
Answer: This can vary from company to company. Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary disputes later on.

Question: Do I need ‘gap’ insurance?
Answer: If your vehicle is on finance, and its value is now less than the amount you owe, then yes you need gap insurance. If you owe less than its value, then no, you do not need gap insurance.