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New Mexico Car Insurance Laws and Requirements (Updated September 2022)

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Jennifer Pendell

By: Jennifer Pendell

Edited by Jackie Cohen

Updated June 17, 2022

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.

Quick Facts

  • Car insurance is required by law in New Mexico.
  • Drivers in New Mexico must carry 25/50/10 in liability coverage.
  • If caught driving uninsured, drivers face $300 in fines, registration suspension, and jail time.

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.

Why is car insurance required in New Mexico?

Auto insurance protects drivers from financial liability in the event of an accident. Depending on a policy’s specific coverage limitations, car insurance may cover everything from vehicle damage to medical bills.

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.

See More: Cheap Car Insurance in New Mexico

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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.

See More: Average Cost of Car Insurance in New Mexico

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.

See More: High-Risk Car Insurance in New Mexico

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.

Insurance CompanyMonthly Quote for Minimum Coverage
Travelers$91
Dairyland$92
Bristol West$102
Nationwide$156
Liberty Mutual$118
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

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.

Frequently Asked Questions

  • Yes. You must carry 25/50/10 to meet the state’s auto insurance requirements. That’s $25,000 for bodily injury or death of one person, $50,000 for bodily injury or death of two or more people, and $10,000 of property damage liability.

  • No. New Mexico is an at-fault state. The person who causes the accident is responsible for damages.

  • No. However, you should consider carrying it anyway. If you’re in an accident caused by an uninsured motorist (or if you’re the victim of a hit-and-run), uninsured motorist coverage will protect you.

  • Yes. You need proof of insurance at the time you register the car.

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  • Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.

Jennifer Pendell
Jennifer Pendell

Insurance Writer

Jennifer Pendell is a personal finance expert. She specializes in breaking down dense subjects to make them easier for consumers to understand, with a particular interest in homeowners, renters, and auto insurance concepts. She studied at the University of Iowa.

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Sources

  1. New Mexico Motor Vehicle Department. "State Minimum Car Insurance Requirements." Accessed June 15, 2022