New Mexico Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

New Mexico drivers must carry minimum insurance coverage of 25/50/10, which means you need an auto insurance policy with at least $25,000 bodily injury liability limits per person and up to $50,000 per accident, with $10,000 for property damage liability. Failure to meet these minimum requirements can lead to penalties and fines. You will also not be able to register your vehicle in New Mexico. Having minimum coverage will protect you against some financial loss in the event of an accident, but choosing higher liability limits and getting additional coverage will provide better protection for you and your vehicle.

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What Is the Minimum Car Insurance Requirement in New Mexico?

When figuring out how much car insurance you need in New Mexico, drivers and vehicle owners should evaluate their needs and circumstances. For those looking for the most affordable option, a policy that meets the state minimum car insurance requirements may be enough. That includes:

  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $10,000 per accident for property damage

If you want complete protection against expenses related to covered perils, you can get higher liability limits for an additional cost.


What Does This Minimum Coverage Mean?

New Mexico car insurance laws state that drivers in the state must have liability insurance. This type of coverage pays for the other party’s bodily injuries and property damage if you cause the accident. The minimum liability limits in New Mexico are 25/50/10, which means you need to carry a policy with at least $25,000 per person for bodily injuries and a total of $50,000 per accident for all parties involved. For property damage liability, which pays for damages you cause to another person’s car or home, the minimum coverage requirement is $10,000.

How Much Does the Minimum Car Insurance Cost in New Mexico?

Auto insurance rates in New Mexico will vary depending on individualized factors. Insurance carriers will consider the driver’s age, ZIP code, driving history, credit score and other relevant factors. Costs of car insurance will also differ by company. To find the most accurate policy, it is best to compare personalized quotes from multiple insurance providers.

For the average driver, the cheapest option for New Mexico minimum car insurance is from MetLife, with an average rate of $441 per year.

Cheapest Minimum Liability Car Insurance in New Mexico

Cheapest Minimum Car Insurance in New Mexico
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These prices are only estimates based on rates for an average New Mexico driver and should not be used to compare insurance prices.

MoneyGeek collected and compared average rates for a state minimum coverage of 25/50/10 from different car insurance providers in New Mexico. The sample driver profile is a 40-year-old male resident driving a 2010 Toyota Camry with a clean driving record and good credit score.


What Is the Minimum Car Insurance Requirement in New Mexico While Leasing a Car?

New Mexico’s car insurance laws set the minimum requirements necessary to drive a vehicle in the state. However, leasing companies may have different limit thresholds. Typically, leasing companies require full coverage auto insurance with minimum liability limits of 100/300/50. Contact your financial leasing company to find out their New Mexico car lease insurance requirements. When shopping for a leased car, make sure you read and understand all the terms of the agreement and the necessary car insurance coverage set by the company.

How much auto insurance you need will depend on your needs. While a minimum car insurance policy may be enough for some drivers, MoneyGeek generally recommends at least 50/100/50 full coverage insurance.

New Mexico ranks fourth-worst in the nation in terms of uninsured motorists, with 21.8% of drivers having no auto insurance. If an uninsured or underinsured motorist hits you, you will not be covered for injuries or property damage. A full coverage car insurance policy is the best way to protect you against financial loss.

Penalties for Driving Without Car Insurance in New Mexico

New Mexico car insurance laws state that you cannot operate a motor vehicle in the state without auto insurance. You must carry proof of insurance when you drive and present it if a law enforcement officer requests it. Additionally, you will need this document to register a motor vehicle in New Mexico. Driving without car insurance or proof of insurance will result in the following penalties and fines:

  • Vehicle registration suspension until proof of insurance is provided
  • License suspension until submission of proof of insurance for the second and subsequent offenses
  • Reinstatement fee at a minimum of $300 and a maximum of $1,000
  • Jail time

Frequently Asked Questions About Car Insurance in New Mexico

When looking for the best auto insurance policy, New Mexico drivers may have some questions in mind. Here are some of the most commonly asked questions to help you get started.

Learn More About Car Insurance

About the Author


Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.