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This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state.

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Insurance 101

The Basics:

Types of coverages:

- Liability: In the case of an accident, that's your fault or you are "liable" for. This will cover Property damage, and bodily injury caused to the other parties involved. Does not cover you or your vehicle!
- Unisured/Unisured motorist: In the case of an accident, where someone hits you, and they dont have insurance, this will cover you from bodily injury or any property damage.
- Comprehensive: This will cover from any fire, theft, vandalism, wind, hail, breakage of glass, or impact with an animal.
- Collision: This will cover from any sory of collision, tree, or vehicle even if its your fault.
- Medical Payments: This will pay for immediate injury (caused by accident) treatment. Covers you, and passengers in the covered vehicle. Regardless

In Depth:

Liability insurance

Liability insurance pays for damages and injuries you cause to another party if you are at fault--or "liable"--in an auto accident. There are two separate parts to this coverage: Bodily Injury liability and Property Damage liability.

Bodily Injury liability covers injuries caused to the other party.
Property Damage liability covers damage caused to the other party's property, such as their car. If you have liability limits of 25/50/10, this means:

$25,000 worth of bodily injury caused to another single person
$50,000 maximum payout for bodily injury per accident
$10,000 of property damage coverage

You can choose limits higher than 25/50/10 (and this is highly recommended), but these are the minimum limits of liability insurance required in New Mexico. Higher limits are recommended because one simple accident could leave you liable for hundreds of thousands--if not millions--of dollars in damages and medical expenses belonging to another party. Even if you don't think you have sufficient assets to warrant the expense of higher coverage, one asset you have that is often overlooked are your future earnings. If you are liable for more damages than you have coverage for, you will likely lose all your assets, savings, and equity in your house--and have your future wages garnished at a rate of anywhere from 33% to 50%.

Underinsured and Uninsured motorist coverage
With significant numbers of New Mexico residents driving without insurance, Uninsured/Underinsured Motorist coverage is another important coverage. This provides bodily injury coverage for you and everyone in your vehicle if you are hit by someone who does not have insurance. It also provides property damage coverage for your vehicle under the same circumstances. This type of coverage can also cover you if the person who hits you causes more damage than his or her policy can cover. In some cases, this coverage can also cover a hit-and-run accident.

Medical payments
This coverage provides coverage for immediate injury treatment when these injuries are caused by a car accident. You, your family members, and passengers of your car are covered, regardless of who is at fault in the accident.

This coverage pays for any physical damage to your vehicle caused by a collision. This includes damages that are your fault, and also those that are not your fault. If your policy has Collision coverage, the policy will pay for any repairs up to the fair market value of the car (in most cases). Collision coverage is usually subject to a deductible. The deductible is the portion of the claim that is your financial responsibility. The higher deductible you select, the lower your insurance premium will be, and vice versa. If your vehicle is financed, the finance company will probably require you to purchase this coverage.

Comprehensive (other than collision)
This coverage covers damage to your vehicle not caused by a collision. It also covers "acts of God". Fire, theft, vandalism, glass breakage, hurricane, and flood are all events usually covered by Comprehensive coverage (please review your policy for exact details). Like Collision coverage, Comprehensive coverage will pay for repairs up to the fair market value of your car, is usually subject to a deductible, and will probably be required if you are financing your vehicle.

Towing and Roadside Assistance
Covers a tow when your vehicle is not drivable due to a covered loss, and roadside assistance coverage varies between policies. Review your policy for details.

Rental Reimbursement
Covers the costs of a rental vehicle (up to a daily limit) when your car is being repaired due to a loss that is covered by your policy. Usually Comprehensive and Collision are required in order to purchase this coverage.

Agency News:

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