Car Insurance Requirements in New Mexico (2025)
New Mexico requires drivers to have minimum liability coverage of 25/50/10.
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Written byElizabeth Rivelli
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Elizabeth Rivelli
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
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Edited byBecky Helzer
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Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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Table of contents
Nearly every U.S. state, including New Mexico, requires drivers to carry car insurance. Because requirements vary by state, it’s important to know your state’s insurance laws.
Here’s what you need to know about New Mexico car insurance requirements to ensure you’re adequately protected.
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New Mexico car insurance requirements
In New Mexico, drivers must carry personal liability insurance with minimum coverage limits of 25/50/10.[1] As an alternative to liability car insurance, you can get a surety bond or make a cash deposit of $60,000 with the New Mexico State Treasurer.
The following table shows the minimum car insurance requirements in New Mexico.
Coverage  | Minimum Requirements |
|---|---|
| Bodily injury liability | $25,000 per person / $50,000 per accident |
| Property damage liability | $10,000 per accident |
Bodily injury liability insurance
Bodily injury liability insurance covers your financial responsibility if you cause an accident that injures other drivers or their passengers. It pays for the injured person’s medical expenses, lost wages, and other non-medical costs.[2]
This coverage includes two separate limits: one for a single person’s injuries in an accident and a second for all injuries in an accident. In New Mexico, a minimum-coverage policy provides $25,000 for one person’s injuries and $50,000 for all injuries in an accident.
It’s important to know that bodily injury liability insurance covers only injuries to others. If you or your passengers are hurt in an accident you caused, it won’t pay for your medical bills.
Property damage liability insurance
Property damage liability insurance pays to repair or replace someone else’s property if you cause an accident that damages it. For example, if you hit another car and cause $5,000 in damage, your property damage liability pays for repairs up to your policy limits.
This coverage also pays for damage to storefronts, buildings, fences, mailboxes, and other property your vehicle hits. In New Mexico, a minimum-coverage liability policy includes $10,000 for all property damage you cause in an accident.
Property damage liability insurance doesn’t cover your vehicle. If you’re at fault in an accident and your car is damaged or totaled, optional collision insurance covers the cost of repairs or replacement.
New Mexico car insurance laws/programs
New Mexico drivers who can’t get insurance because of their credit history or driving record can buy coverage through the New Mexico Motor Vehicle Insurance Plan. This program allows New Mexico residents to get auto insurance even if they’re unable to purchase a policy on the voluntary market due to certain risks.
The New Mexico Motor Vehicle Insurance Plan is managed by the Western Association of Automobile Insurance Plans (WAAIP). To get coverage in New Mexico, you can call the WAAIP at 1 (800) 227-4659 and an agent will connect you with a company that will insure you.
Do you need more than state-minimum coverage in New Mexico?
A state-minimum insurance policy in New Mexico covers other people’s losses when you cause an accident. Many insurance professionals recommend buying higher liability limits than your state requires to protect yourself financially.[3]
A liability-only policy doesn’t cover your vehicle repairs, but it may be sufficient if your car is older and you can afford to replace it. While more expensive, a full-coverage insurance policy covers your losses when you cause an accident.[4]
Full coverage provides more protection, but it has a higher premium than liability-only insurance, which is the cheapest coverage you can get. A full-coverage insurance policy in New Mexico averages $148 per month, according to Insurify data.
Penalties for driving without proof of insurance in New Mexico
New Mexico will suspend your registration if you drive without auto insurance. You’ll receive a Notice of Suspension of Registration letter in the mail, and within 10 days, you must return your vehicle registration and license plates to the motor vehicle division (MVD).
Failure to do so within the allotted time frame may lead to additional consequences, including criminal penalties. To reinstate your registration, you’ll need to purchase auto insurance and pay a $30 fee.
Cheapest liability-only car insurance in New Mexico
Liability insurance covers another person’s injuries and property damage when you cause an accident. In New Mexico, the law requires all drivers to carry a minimum amount of liability insurance.
The average cost of liability car insurance in New Mexico is $68 per month, but rates vary by insurance company and your driver profile. The table below shows the cheapest average liability insurance rates from several of the best insurers in New Mexico.
The below rates are estimated rates current as of: Thursday, July 3 at 12:00 PM PDT.
Insurance Company | Average Monthly Quote |
|---|---|
| National General | $58 |
| The General | $60 |
| Progressive | $67 |
| Bristol West | $71 |
| Root | $71 |
| Safeco | $80 |
| Dairyland | $87 |
| Direct Auto | $96 |
| GAINSCO | $97 |
| State Farm | $98 |
| USAA | $118 |
| Liberty Mutual | $143 |
| GEICO | $150 |
| Allstate | $193 |
| Farmers | $231 |
| Nationwide | $234 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest full-coverage car insurance in New Mexico
A full-coverage policy includes liability, collision coverage, and comprehensive coverage. While a full-coverage policy is optional for most drivers, lenders typically require it if you lease or finance your car.[5]
In New Mexico, the average cost of full-coverage car insurance is $148 per month. See below for average full-coverage quotes from a few of the cheapest insurance companies.
The below rates are estimated rates current as of: Thursday, July 3 at 12:00 PM PDT.
Insurance Company | Average Monthly Quote |
|---|---|
| Progressive | $122 |
| Root | $128 |
| National General | $142 |
| State Farm | $151 |
| Safeco | $151 |
| The General | $156 |
| Direct Auto | $182 |
| USAA | $182 |
| Bristol West | $192 |
| GEICO | $194 |
| Dairyland | $212 |
| Liberty Mutual | $216 |
| GAINSCO | $248 |
| Allstate | $299 |
| Farmers | $357 |
| Nationwide | $363 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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Optional car insurance coverages to consider
If you own a vehicle in New Mexico, having adequate coverage can protect you if you have an accident or need to file another type of claim. These optional car insurance coverages can help fill in the gaps:
Roadside assistance coverage
Roadside assistance covers fuel delivery, battery replacements, lockouts, flat-tire changes, and several miles of towing.
Gap coverage
If your car is totaled or stolen and you owe more than it’s worth, gap insurance covers the difference between the car’s value and what you still owe the lender.[6]
Medical payments coverage
Medical payments coverage pays for your and your passengers’ medical expenses following an accident, regardless of fault. It usually kicks in when you’re the at-fault driver.
Uninsured/underinsured motorist coverage
Uninsured/underinsured motorist insurance helps pay for your medical expenses and property damage if you’re in an accident with a driver who’s uninsured or doesn’t have enough coverage to pay for your losses in full.
Rental car reimbursement coverage
Rental car reimbursement pays for a loaner vehicle while your car is being repaired after a covered claim.
New car replacement coverage
If your car is totaled or stolen, new car replacement insurance pays to replace it with a brand-new one of a similar make and model, without factoring in depreciation.
New Mexico car insurance requirements FAQs
If you’re shopping for the best car insurance in New Mexico, the answers to these frequently asked questions can help you choose the best policy for your situation and budget.
Yes. Car insurance is a legal requirement in New Mexico. Vehicle owners must carry at least 25/50/10 in personal liability insurance.
Yes. You must have car insurance to register a vehicle in New Mexico. If you don’t maintain car insurance that meets the state’s coverage requirements, the state will suspend your registration.
In New Mexico, car insurance follows the car. So, for example, if you give a friend permission to drive your car and they cause an accident, they’d be covered under your car insurance policy.
While you may be able to get car insurance in New Mexico with an out-of-state driver’s license, you typically need a license from the state where your vehicle is parked to get insurance.
Most insurance professionals recommend that your auto insurance liability limits match or exceed your personal net worth. This helps protect your assets if someone sues you after a serious accident.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- New Mexico Motor Vehicle Division. "Insurance."
- National Association of Insurance Commissioners. "Auto Insurance."
- National Association of Insurance Commissioners. "A Shopping Tool for Automobile Insurance."
- Insurance Information Institute. "What is covered by collision and comprehensive auto insurance?."
- National Association of Insurance Commissioners. "What You Should Know About Auto Insurance Coverage."
- Insurance Information Institute. "What is gap insurance?."
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Elizabeth Rivelli
Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and Insurance.com.
Elizabeth has been a contributor at Insurify since October 2022.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.