New Mexico’s insurance laws make it difficult to drive without insurance. New Mexico is the fourth largest state for uninsured motorists with an estimated 21.8% of drivers driving uninsured, based on the latest study from the Insurance Information Institute. According to the Insurance Information Institute, this means that drivers who are involved in an accident with an uninsured driver have a 1 in 5 chance of being hit by one. You are not only putting others in financial risk, but also putting yourself at risk of legal or financial consequences.
New Mexico requires minimum insurance
New Mexico state law requires all drivers to carry bodily injury and property damage liability. Currently, drivers at minimum must have a 25/50/10 policy.
- $25,000 per person to cover bodily injury/death
- $50,000 for bodily injury/death
- Property damage: $10,000 per accident
New Mexico drivers will pay $385 per year for minimum coverage, based upon annual premiums quoted by Quadrant Information Services. Experts recommend that drivers consider buying a comprehensive policy with collision and comprehensive coverage.
Liability covers only the damages you cause another person. It does not cover financial losses or damages to your vehicle or yourself. Uninsured motorist coverage will cover you for medical and repair costs if you are injured in an accident caused by an uninsured driver.
Driving without insurance in New Mexico can result in severe penalties
Even if it is the first incident, drivers in New Mexico driving without insurance face an immediate suspension of both their license and registration. Driving without insurance may also lead to an SR-22 requirement being issued.
You could spend up to 90 days in jail and be fined up to $300 if it’s your first offense. A subsequent offense could result in you being sentenced to six months imprisonment and a $1,000 fine. A judge could give a harsher sentence if you are convicted for driving without insurance twice more.
Drivers who cause an accident without insurance can face imprisonment and more severe fines. New Mexico has one of the highest vehicle death rates in the country (20.2 travelers per 100,000 people), so reckless driving — especially without insurance — is severely penalized.
Fees for new-mexico’s online verification system for insurance
New Mexico recently partnered with PASCO Inc. to develop an online insurance identification database through Validati. Both drivers and insurance companies can submit proof of insurance at www.driveinsured.com. You will be issued notice by mail if you do not have adequate insurance or you receive a ticket from the police.
You have 30 days from the date you receive a mail letter to prove your insurance coverage before your registration is suspended. To reinstate your license, you must comply with this deadline. Drivers can pay this fee online through the MVD New Mexico portal.
In an accident and not having insurance
New Mexico can be very dangerous for those who do not have insurance. You will not only face the above-mentioned penalties, but you could also be subject to a financial burden that can take years to pay off.
A similar risky decision is not having enough insurance. You may believe that your financial security is assured if you are involved in an accident. Although you may be technically more financially secure than someone without insurance, you still have to pay for any damage you cause, even if your coverage limits are exceeded. If you crash into a car with passengers, your medical expenses could quickly exceed your minimum liability policy limits. You are responsible for any excess beyond the policy limits if you don’t have insurance. A civil court can seize your assets and garnish wages in order to collect the amount owed.
Car insurance is meant to protect you and your passengers from financial ruin. Driving without it will lead to long-term legal and financial consequences.
Questions frequently asked
What happens if you give false information about your insurance?
The state ramifications for driving without insurance are severe, but providing false insurance information can lead to criminal charges. Your license could be suspended, you may spend time in jail, and you may have to pay a substantial fine. Law enforcement can quickly find out if drivers have provided false information about their insurance with New Mexico’s online system for verifying their coverage.
Your policy could be cancelled if you lie to your insurance company in order to be approved for a rate reduction or get approval. This would make it more difficult and costly to get a policy with another insurer.
What is the cost of New Mexico car insurance?
The average cost of car insurance in the United States is $1,674 a year for full coverage, based on quoted annual premiums. Full coverage premiums in New Mexico average $1,419 per year. New Mexico drivers average $255 less for full coverage than the national rate.
Does New Mexico require SR-22s?
Yes, New Mexico requires drivers to fill out an SR-22 form under certain circumstances. Driving without insurance in New Mexico is one example of a qualifying situation.
Which are the top New Mexico insurance companies?
Bankrate ranks the top insurance companies based on customer satisfaction scores, financial strength, coverage, and discounts. Based on our review of these factors, the best companies in New Mexico are Allstate, American Family, Geico, Safeco and State Farm. Each driver will have their own preferences about the best car insurance provider. It is a good idea to compare quotes and choose the coverage that best suits your needs in order to find the right insurer.