Auto Insurance Question New Mexico NM
Reader’s Question
I‘ve heard that I should have clear driving record in New Mexico to save on auto insurance. But what will happen if I met an accident and I filed a claim? Will it affect my premiums?
Mon
Albuquerque, NM
Nice question, Mon.
To start with, insurance companies are generally diligent with insurance risk – even about auto insurance. The insurance companies take notes of any driving records so if you file claims for your auto insurance; this means that you have met an accident. And this could be unfavorable to both you and the company. To give a straight answer, yes, your auto insurance premiums would definitely be affected when you file for claims. The increase would be due to chargeable claim (claims that are considered your fault). However, the extent of the increase differs from company to company. The determinant would be the result of the investigation of the accident. The worst consequence would be non-renewable of your auto insurance policy. The worst case with this worst consequence is the accident due to drink and drive.
If you’re thinking of not filing claim for your auto insurance even on minor accidents, this will not do you good either. If the other party decides to sue you or claim his rights of liability for the accident a few weeks after, your auto insurance company in New Mexico may not honor your policy because of the delayed claims. Even if they have to honor your policy, it will already be difficult for them to investigate. The right thing to do is always contact your auto insurance company of any accident no matter how minor you think it is.
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