New Mexico Car Insurance Laws and Requirements (2023)

New Mexico law dictates the minimum requirements for insurance coverage that all drivers must carry. All drivers in New Mexico must hold 25/50/10 in liability coverage. Additionally, drivers can pick from a long list of additional coverages for added protection.

Minimum Car Insurance Requirements in New Mexico

The minimum car insurance requirements in New Mexico^[1] are:

• $25,000 for bodily injury liability or death of one person

• $50,000 for bodily injury liability or death of two or more people

• $10,000 for property damage liability per accident

New Mexico is an at-fault state for car accidents. That means that whoever caused an accident is liable for the damages of their victims.

Bodily Injury Liability

Bodily injury liability is part of your liability car insurance coverage. If you cause an accident, this coverage will help cover the other party’s medical expenses. This type of coverage will not cover your own medical expenses for injuries sustained in a car accident you caused. Bodily injury liability coverage is required in New Mexico.

Property Damage Liability

Property damage liability is the other half of your liability car insurance. It covers repair costs and damage expenses to the other cars involved in an accident you caused. This coverage does not cover damage to your own car in an accident you were at fault for. Property damage liability coverage is required in New Mexico.

Is state minimum car insurance enough in New Mexico?

The minimum required car insurance coverage in New Mexico provides drivers with a solid foundation of auto insurance coverage, but it may not be enough for everyone.

The minimum property damage liability insurance, for example, only protects you up to $10,000. This is a relatively small amount that won’t cover everything, especially if you’re involved in an accident with multiple cars.

Optional Car Insurance Coverage for New Mexico

New Mexico drivers who want to be protected in any situation should consider bolstering the minimum car insurance coverage with the following supplemental car insurance coverages:

Collision Coverage

Collision coverage covers damages to your car after a collision with another vehicle or object. If your vehicle is a total loss, collision coverage will reimburse you for the actual cash value of your vehicle. This is a great addition to the required property damage liability coverage in New Mexico, which applies only to the damages to the other driver’s vehicle.

Comprehensive Coverage

Complementing your collision coverage, comprehensive insurance covers damage to your vehicle that occurs during an event that is not a collision with another vehicle or object. This may apply in situations of vandalism, theft, weather damage, or a run-in with an animal. Adding comprehensive and collision coverage together creates a full-coverage car insurance policy.

Uninsured/Underinsured Motorist Coverage

If an uninsured (or underinsured) driver causes an accident and you suffer bodily injury, uninsured motorist coverage will cover your medical expenses. If the at-fault driver surpasses their bodily injury liability coverage limits, your underinsured motorist coverage will cover the rest of your medical expenses.

Other Supplemental Coverage

Add-ons to your auto insurance policy can come in handy if you’re ever involved in an accident. Roadside assistance in particular can be helpful if you’re stranded and need a tow to a repair facility, and most insurance providers offer it.

Also consider MedPay, otherwise known as medical payments insurance. This type of coverage isn’t required under state law like it is in many no-fault states, but if you’re injured in a car accident and are having trouble paying medical bills afterward, you’ll be glad you added it to your policy.

Penalties for Driving Uninsured in New Mexico

It is illegal to drive in New Mexico without the minimum car insurance coverage. You need continuous proof of insurance that meets the minimum amount prescribed by state law. If you don’t carry insurance, the potential ramifications include

• A $300 fine

• Imprisonment for up to 90 days

• Suspension of your motor vehicle registration

If you let your insurance lapse, it will usually cost more to get it back. That’s why it’s important to maintain continuous insurance, even if you’re not planning to drive for a while.

Minimum Requirements for High-Risk Drivers in New Mexico

Depending on the specific offense, high-risk drivers in New Mexico are likely to face higher auto insurance rates and may have to jump through other hoops to get back on the road. New Mexico doesn’t require an SR-22 certificate to prove financial responsibility as other states do, but you may have to take a driving class or even petition the court to restore your license.

More Information for High-Risk Drivers in New Mexico

DUI Insurance in New Mexico

Cheapest Minimum Car Insurance in New Mexico

Car insurance companies weigh different factors to determine what to quote drivers on their car insurance policies. Minimum coverage generally means lower car insurance rates. It also means low coverage limits, which may cost you if you’re ever involved in an accident. Here are the cheapest car insurance quotes for minimum coverage in New Mexico.

How to Find Cheap Car Insurance in New Mexico

Trying to find affordable car insurance in New Mexico? Compare car insurance quotes online to see what different insurance companies are charging for similar policies. Comparing quotes is one of the easiest ways to save money on car insurance.