What is a Tort State in Terms of Car Insurance?
Reader’s Question:
I’m moving to Santa Fe, New Mexico next month, is New Mexico a “tort state”, what does “tort state” actually means? If it is, what effect does it do regarding my car insurance?
Marty
Santa Fe, NM
Yes, New Mexico is a tort state. By definition, “tort” is an injury to another individual or damage to a property which is compensated under law. The injury or damage can be done willfully, negligently or in other instances involving liability. With regards to car insurance, each State tends to be either a Tort State or a No-Fault State. With this, someone must be found to be at fault for causing the accident under a tort system. Then, the at-fault party is held responsible for the damages incurred. The policies and regulations for a tort system vary from state to state.
This means that Santa Fe, New Mexico drivers are financially responsible for the property damage and personal injury they may cause during a car accident. New Mexico’s standard liability coverage requirements are 25/50/10. This means that your car insurance policy should cover $25,000 per individual for bodily injuries you cause to the other persons, and up to $50,000 for all, and $10,000 for damage you cause to the other party’s personal property. Uninsured and underinsured motorist coverage, as well as collision and comprehensive coverage are optional for the standard liability policies. New Mexico determines car insurance rates based on driving record, age, area you live in, and the type of vehicle you drive. However, you may have the option to consider getting higher coverages than the required state minimums.
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