When you’re shopping for automobile insurance from a New Mexico insurance agency, its helps to know what types of coverage will be included in most policies. It’s important to know what to expect while you’re shopping, as well as become familiar with common terms used. Most policies will include comprehensive, collision, liability and uninsured motorist coverage.
Comprehensive, Collision and Liability
Most commonly, you’ll be offered a policy which includes both comprehensive and collision coverage. If you’re making payments on your vehicle, your loan company may actual require you to carry both. When a New Mexico insurance agency discusses collision coverage, that applies to any damage on your vehicle from an accident with another vehicle or a direct collision with another object. Comprehensive coverage is for damage not caused by accidents, such as severe weather, fire, colliding with animals or theft. Liability, which is legally required in nearly every state, typically includes property damage and bodily injuries that result from an accident in which you’re at fault.
Unfortunately, one out of every eight drivers operates a vehicle without insurance. If you’re unlucky enough to be in an accident involving one, your policy should address any damage that results. This type of coverage is standard with nearly all insurance policies.
In addition to these standard types of insurance, you might also encounter personal injury payments and additional medical coverage. Your New Mexico insurance agent will be able to recommend a policy that works best for you. A combination of coverages will work together to protect you financially.