New Mexico Car Insurance Laws and Requirements (2024)
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Written byJennifer Pendell
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Jennifer PendellInsurance 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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Edited byJackie Cohen
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Jackie Cohen is an editorial manager at Insurify specializing in property & casualty insurance educational content. She has years of experience analyzing insurance trends and helping consumers better understand their insurance coverage to make informed decisions about their finances.
Jackie's work has been cited in USA Today, The Balance, and The Washington Times.
Updated November 21, 2024
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Table of contents
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.
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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.
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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.
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
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 Company ▲▼ | Monthly Quote for Minimum Coverage ▲▼ |
|---|---|
| Travelers | $91 |
| Dairyland | $92 |
| Bristol West | $102 |
| Nationwide | $156 |
| Liberty Mutual | $118 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer'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
Is car insurance mandatory in New Mexico?
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.
Is New Mexico a no-fault state?
No. New Mexico is an at-fault state. The person who causes the accident is responsible for damages.
Does New Mexico require uninsured motorist protection?
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.
Do you need car insurance to register a car in New Mexico?
Yes. You need proof of insurance at the time you register the car.
How can I find cheap car insurance in New Mexico?
Find affordable car insurance in New Mexico by comparing car insurance quotes online using Insurify. Comparing quotes helps you make sure you’re getting the best deal you can.
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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 50+ 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.
Related articles
More cities in New Mexico
Sources
- New Mexico Motor Vehicle Department. "State Minimum Car Insurance Requirements."
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Jennifer PendellInsurance 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.
Jackie Cohen is an editorial manager at Insurify specializing in property & casualty insurance educational content. She has years of experience analyzing insurance trends and helping consumers better understand their insurance coverage to make informed decisions about their finances.
Jackie's work has been cited in USA Today, The Balance, and The Washington Times.
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