New Mexico car insurance laws


New Mexico’s car insurance laws mandate that drivers have liability insurance to legally drive. This is crucial as there were 46.786 car accidents in New Mexico last year, resulting in 392 deaths. This shows that New Mexico needs to have strong insurance coverage.

It is essential to understand your minimum requirements and any optional coverages in order to build a solid policy for car insurance. This will provide adequate coverage in the case of an accident or other mishap. You can purchase additional coverage if you are able to meet the minimum requirements.

New Mexico has laws regarding car insurance

New Mexico’s auto insurance requirements for liability insurance are 25/50/10, as we have already stated. New Mexico drivers must have uninsured motorist coverage. Below is a list of the minimum coverage you must have:

  • Bodily Injury Liability: $25,000 Per Person and $50,000 Per Accident
  • Property damage liability: $10,000 per accident
  • Uninsured motorist bodily Injury: $25,000 per Person and $50,000 per Accident
  • Property damage to uninsured motorists: $10,000 for each accident
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New Mexico’s minimum coverage cost is $337. This is $226 lower than the $563 national average. The Land of Enchantment offers full coverage, including collision and comprehensive, at $1,388 annually, compared with the national average of $1738.

New Mexico offers liability insurance

In insurance, liability means you are responsible to pay the accident costs if you cause it. New Mexico’s liability insurance laws protect you and you won’t have to pay any out-of-pocket expenses in an at-fault incident. Are the minimum requirements sufficient to adequately cover you?

Experts would disagree. You might not have enough coverage in the event of a serious accident. For example, think about what could happen if you run a red light and hit a car waiting to turn left. The $25,000 minimum coverage may be canceled if the driver sustains serious injuries and requires expensive rehabilitation. The driver would be responsible for any additional costs that may arise.

New Mexico’s PD liability can also be quite low compared with other states, especially when you consider that the average cost of a new car in America is over $40,000. Ten Thousand dollars will not be enough if the other vehicle in an accident is a luxury or newer model.

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Is New Mexico a no fault state?

New Mexico is not among the 12 no-fault states. These laws were created to reduce the number of traffic accident cases. You can only sue in no-fault states. Personal injury protection is a type insurance that covers you regardless of who caused the accident.

New Mexico does not allow this to be the case. Instead, there are three options for you to take after an accident that was not your fault.

  • You can file a claim against your insurer. They will use subrogation to obtain a judgment from another driver’s insurance company.
  • You can file a Third-Party Claim with the insurer of the other driver.
  • You can sue the other driver for personal injury.

Driving without insurance in New Mexico can result in severe penalties

If you are caught driving in this state without insurance, there are several possible penalties. After 30 days, you will be sent a notice suspending your registration. After the suspension is lifted, you will be liable for a $100 fine and other fees. Otherwise, you will be unable to drive legally.

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Additional options for auto insurance in New Mexico

While you must meet New Mexico’s auto insurance requirements you don’t need to stop there. It is a smart idea to increase your coverage as much as possible. These optional coverage options are also available in New Mexico.

  • Collision coverage: This covers the cost of your car being damaged in an accident. (Remember that liability only covers the damage to another car). A deductible can be added at the time you buy the policy. You may not want collision coverage if your vehicle is old and in poor condition. However, collision coverage is worth the cost if your car has any value.
  • Comprehensive: Commonly bundled with collision. Comprehensive covers non-accidental mishaps such as theft, vandalism, and natural disasters. For example, if a tree falls on you car during a storm. If you lease or finance your car, it may have a deductible.
  • Injuries (medpay): These can help you pay your medical bills if you are in an accident. You can also get medical care if you are hurt while walking, riding a bike or riding in another person’s vehicle.
  • Gap insurance Your insurer may send you a check if your vehicle is totaled. However, it will only be for the car’s depreciated price. Gap insurance pays for any excess on your car loan so you don’t have to pay extra.
  • Towing and labor coverage: If you require roadside assistance, this type of coverage kicks into effect. This coverage may include towing fees, tire changes and jump starts as well as lockout assistance. You should carefully read your policy documents to understand the extent of this coverage, as it varies from one insurer to another.
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Questions frequently asked

Which New Mexico car insurance company is best?

There are many good New Mexico insurers that can write policies. You can shop around and get free quotes online from several. You should look for low premiums, financial stability, and exceptional customer service. Get started with our Best Car Insurance In New Mexico page.

What amount of liability insurance do you need?

It all depends on your budget, but experts recommend purchasing more coverage than what is required by New Mexico insurance laws. You should aim for 100/300/50 coverage, which will cover most accidents.

Which optional coverages should you have?

It depends on your individual situation and personal preferences. You should have collision and comprehensive coverage if your vehicle is older and more valuable. Gap coverage is an option if you have a car loan. In an emergency, you may find it easier to have coverage such as labor and towing.