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New Mexico Car Insurance Regulations & Required Coverage

New Mexico requires drivers to maintain financial responsibility in the form of an insurance policy or posting cash or bond with the state treasury. Most often, people will opt for simply getting a car insurance policy. New Mexico has certain minimum requirements and insurance laws that you should be aware of if you currently live in, plan on moving to or are just visiting the state.

New Mexico operates under a tort system. Their insurance laws dictate that after an accident, someone must always be found at fault for causing the accident. Once someone is found to be at fault, they and their insurance company are then held financially responsible for covering any resulting expenses from the accident.

Required Coverage

All personal vehicles in New Mexico require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage
Minimum New Mexico Car Insurance Requirements
Bodily Injury Liability $25,000 / $50,000 Limit
Property Damage Liability $10,000 Limit

Additional insurance coverage can include:

  • Uninsured / Underinsured Motorist Liability Coverage
  • Comprehensive and Collision Coverage

Uninsured or Underinsured insurance coverage pays for expenses related to being in an accident with someone who does not have adequate coverage or any coverage at all to pay for the resulting bills.

Comprehensive and collision coverage are two optional, but important insurance coverages. Collision will pay for expenses related to fixing or replacing your vehicle after an accident while comprehensive covers other, non-collision related damages such as fire damage or your vehicle being stolen. We have compiled a list of most stolen vehicles in New Mexico. If your vehicle is a popular target, this coverage is even more important to have

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy
  • Deposit $60,000 cash/bond with the New Mexico state treasurer's office

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID card
  • Copy of your insurance policy
  • Letter from your insurance company (on company letterhead)

You must maintain proof of insurance and financial responsibility and present it:

  • If asked by a police officer
  • If notified by the New Mexico MVD

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance, you can face one of the following penalties:

  • Fines of $300 or more
  • Misdemeanor charges
  • Suspension of your vehicle's registration
  • Additional reinstatement fees

New Mexico Insurance Agents

Albuquerque Car Insurance | Las Cruces Car Insurance | Rio Rancho Car Insurance | Santa Fe Car Insurance | Roswell Car Insurance | Farmington Car Insurance | Clovis Car Insurance | Hobbs Car Insurance | Alamogordo Car Insurance | Carlsbad Car Insurance | Los Alamos Car Insurance