10 Top Ways to Lower Auto Insurance Costs in Santa Fe, NM

Feel like you’re a prisoner to an overpriced auto insurance policy? Trust us, many Santa Fe consumers feel financially strained by their auto insurance policy.

You have so many auto insurance companies to pick from, and though it is a good thing to have multiple companies, lots of choices makes it harder to locate the cheapest rates.

It’s a good idea to do rate comparisons quite often since insurance rates change frequently. Even if you got the best price a couple years back you will most likely find a better rate today. There is a lot of bad advice regarding auto insurance on the internet, so with this article, you’re going to get some great ideas on how to reduce your auto insurance bill.

Free Santa Fe Auto Insurance Quotes

When shopping for auto insurance there are multiple ways to compare rate quotes from local in Santa Feauto insurance companies. The recommended way to find the lowest rates is to use the internet to compare rates. This is very easy and can be done in several different ways.

  • The most efficient way consumers can make multiple comparisons is an all-inclusive rate comparison (click to open form in new window). This method keeps you from doing repetitive form entry for every auto insurance company. A single, simple form gets rate comparisons from multiple low-cost companies.
  • A less efficient way to get comparison quotes consists of going to the website for every company you want to comare to complete their respective quote request forms. For sake of this example, let’s assume you want rates from Farmers, Safeco and GMAC. To get rate quotes you would need to visit each site to input your insurance information, and that’s why the first method is more popular.

    For a list of links to insurance companies in Santa Fe, click here.

It doesn’t matter which method you choose, just ensure you are comparing exactly the same deductibles and coverage limits on every quote you get. If your comparisons have different values for each quote it will be impossible to determine the lowest rate in Santa Fe. Having just a slight variation in coverages can make a big difference in price. And when comparison shopping, comparing a large number of companies provides better odds of finding lower pricing.

These ten discounts can lower your rates

Car insurance companies don’t list every available discount very clearly, so here is a list both the well known as well as the least known discounts you could be receiving.

  • Good Students Pay Less – Getting good grades can be rewarded with saving of up to 25%. This discount can apply up to age 25.
  • Clubs and Organizations – Belonging to certain professional organizations could qualify you for a break on your policy.
  • Drive Less and Save – Driving fewer miles can qualify you for better rates on cars that stay parked.
  • Defensive Driver – Taking part in a course teaching defensive driving skills could save 5% or more and easily recoup the cost of the course.
  • Paperless Signup – Some insurance companies will give a small break for buying a policy and signing up online.
  • Discount for New Cars – Putting insurance coverage on a new car can be considerably cheaper due to better safety requirements for new cars.
  • Government Employees – Simply working for the federal government could cut as much as 10% off with certain companies.
  • Discounts for Safe Drivers – Drivers who avoid accidents can pay as much as 50% less than their less cautious counterparts.
  • Theft Prevention System – Cars that have factory anti-theft systems are stolen less frequently and therefore earn up to a 10% discount.
  • Discount for Swiching Early – Select companies give a discount for switching to them prior to your current policy expiring. The savings is around 10%.

It’s important to note that some credits don’t apply to all coverage premiums. The majority will only reduce the price of certain insurance coverages like comprehensive or collision. So when it seems like it’s possible to get free car insurance, you’re out of luck.

For a list of providers with the best auto insurance discounts in Santa Fe, click here.

Even more information can be read at the New Mexico Insurance Division website. New Mexico drivers can find a variety of consumer forms, view agent and company licensing information, file complaints about a company, and learn about specific coverages.New Mexico insurance quotes

Other useful links include this online resource for auto insurance quotes in New Mexico and this page of Santa Fe insurance agents.

Auto insurance coverage basics

Learning about specific coverages of a auto insurance policy can be of help when determining the best coverages at the best deductibles and correct limits. The terms used in a policy can be difficult to understand and coverage can change by endorsement. Listed below are the usual coverages found on most auto insurance policies.

Uninsured and underinsured coverage – This coverage provides protection when other motorists either have no liability insurance or not enough. Covered claims include medical payments for you and your occupants and also any damage incurred to your vehicle.

Since many New Mexico drivers carry very low liability coverage limits (New Mexico limits are 25/50/10), it only takes a small accident to exceed their coverage. So UM/UIM coverage should not be overlooked.

Liability car insurance – Liability coverage protects you from damage or injury you incur to other’s property or people that is your fault. This coverage protects you from claims by other people. It does not cover damage sustained by your vehicle in an accident.

Coverage consists of three different limits, per person bodily injury, per accident bodily injury, and a property damage limit. As an example, you may have policy limits of 50/100/50 that translate to $50,000 bodily injury coverage, $100,000 for the entire accident, and a limit of $50,000 paid for damaged property.

Liability coverage pays for claims like medical services, attorney fees, bail bonds, loss of income and pain and suffering. How much liability should you purchase? That is up to you, but it’s cheap coverage so purchase as much as you can afford. New Mexico state minimum liability requirements are 25,000/50,000/10,000 but drivers should carry better liability coverage.

Collision – Collision insurance will pay to fix damage to your vehicle caused by collision with another vehicle or an object, but not an animal. You have to pay a deductible and the rest of the damage will be paid by collision coverage.

Collision coverage pays for claims like colliding with a tree, hitting a mailbox, rolling your car, hitting a parking meter and backing into a parked car. Paying for collision coverage can be pricey, so analyze the benefit of dropping coverage from vehicles that are 8 years or older. Another option is to raise the deductible in order to get cheaper collision rates.

New Mexico insurance quotes

Coverage for medical payments – Med pay and PIP coverage reimburse you for short-term medical expenses for things like pain medications, ambulance fees and doctor visits. They are often used to cover expenses not covered by your health insurance plan or if you lack health insurance entirely. Medical payments and PIP cover all vehicle occupants and also covers if you are hit as a while walking down the street. Personal injury protection coverage is not available in all states and gives slightly broader coverage than med pay

Comprehensive coverages – Comprehensive insurance covers damage caused by mother nature, theft, vandalism and other events. You first have to pay a deductible then the remaining damage will be covered by your comprehensive coverage.

Comprehensive can pay for things like damage from a tornado or hurricane, hail damage, a tree branch falling on your vehicle, a broken windshield and hitting a deer. The maximum payout your auto insurance company will pay is the ACV or actual cash value, so if it’s not worth much more than your deductible it’s probably time to drop comprehensive insurance.

Cheaper insurance is a realistic goal

Low-cost auto insurance is definitely available both online in addition to many Santa Fe insurance agents, and you need to price shop both to have the best chance of lowering rates. Some companies do not provide you the ability to get quotes online and usually these smaller companies provide coverage only through local independent agents.

As you shop your coverage around, you should never reduce needed coverages to save money. There are many occasions where someone sacrificed liability limits or collision coverage to discover at claim time that their decision to reduce coverage ended up costing them more. The aim is to buy enough coverage at a price you can afford while not skimping on critical coverages.