Is car insurance required in New Mexico?

Yes. According to state laws, you cannot operate a motor vehicle in New Mexico without auto insurance. You should carry a minimum of 25/50/10 in liability insurance. Furthermore, you should be able to present proof of insurance if a law enforcement officer asks. Failure to comply with New Mexico car insurance laws can result in penalties, fines and even jail time.

Do you need car insurance to register a car in New Mexico?

Yes. New Mexico vehicle owners should provide proof of insurance when registering a car. You should also carry this document with you when you drive. Failure to provide proof of insurance when a law enforcement officer asks may subject you to fines and other penalties.

What is “basic” car insurance in New Mexico?

Generally, basic car insurance refers to the state minimum coverage requirements. In New Mexico, this refers to 25/50/10 liability coverage limits. You should have at least this level of coverage to legally drive your vehicle in New Mexico. Otherwise, you will face penalties, fines or jail time.

Does insurance follow the car or driver in New Mexico?

The type of coverage will determine whether auto insurance will <a href="https://www.claimsjournal.com/news/national/2014/06/05/249762.htm" target="_blank">follow the car or driver</a>. New Mexico car insurance typically follows the car. That means your policy will pay for expenses even if you are not the one driving the vehicle if an at-fault accident happens.

Can you get car insurance without a license in New Mexico?

New Mexico vehicle owners can purchase an auto insurance policy without a driver’s license . However, the process may be a bit more complicated. Additionally, not all companies offer car insurance to people without a license.

Is New Mexico a no-fault state and what does this mean?

No, New Mexico is not a no-fault state. That means the insurance policy of the driver who caused the accident will cover expenses for bodily injuries and property damage.

Is PIP coverage required in New Mexico?

No, personal injury protection (PIP) is not required in New Mexico. That is because New Mexico is an at-fault state, where the insurer of the driver who caused the accident takes care of all expenses that the other party incurs due to injuries or property damage. However, if you want coverage for your injuries and vehicle, adding PIP insurance is a good option.

Does New Mexico require uninsured motorist insurance?

No. Uninsured motorist insurance is not a requirement in New Mexico. However, the state has the fourth-worst rate of uninsured motorists in the nation. So, purchasing uninsured motorist coverage will provide you with more protection against possible financial loss.

Does New Mexico allow for diminished value compensation after an accident?

Yes, New Mexico allows diminished value compensation after an accident. This means New Mexico drivers can file diminished value claims to compensate for the difference in the lowered market value of the car from before and after a car accident. The statute of limitations for diminished value claims in New Mexico is four years.

How do car insurance requirements change after a DUI in New Mexico?

Generally, New Mexico car insurance requirements do not change after a DUI . However, your auto insurance rates will likely be much more expensive than before.v

What is a CARCO inspection and is it required?

A CARCO inspection refers to an independent pre-insurance inspection that will verify and document the condition of your car, including its physical condition, mileage and any existing options and accessories. Some states require CARCO inspections, but New Mexico is not one of them.

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.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in New Mexico
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in New Mexico
FAQs

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.

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.

MoneyGeek also ranked the best car insurance companies in New Mexico for those who want strong service and affordable rates.

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 Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

CARCO Group. "CARCO FAQs: Pre-Insurance Inspection FAQs." Accessed July 9, 2021.
Claims Journal. "Does Automobile Insurance Follow the Car or the Driver?." Accessed July 9, 2021.
CollisionClaims.com. "Diminished Value in New Mexico." Accessed July 9, 2021.
Consumer Federation of America. "Penalties for Driving Without Auto Insurance by State." Accessed July 9, 2021.
Insurance Information Institute. "2020 Insurance Fact Book." Accessed July 9, 2021.
Insurance Information Institute. "Background On: Compulsory Auto/Uninsured Motorists." Accessed July 9, 2021.
Insurance Information Institute. "Facts + Statistics: Uninsured Motorists." Accessed July 9, 2021.
Kelley Blue Book. "Penalties for Driving without Car Insurance by State." Accessed July 9, 2021.
Nationwide. "What States Have No-Fault Insurance?." Accessed July 9, 2021.
New Mexico Motor Vehicle Division. "DWI Information." Accessed July 9, 2021.
New Mexico Motor Vehicle Division. "Insurance." Accessed July 9, 2021.
New Mexico Motor Vehicle Division. "Register Your Vehicle." Accessed July 9, 2021.

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