Understanding New Mexico's Auto Insurance Requirements And Minimums

New Mexico requires all drivers to have minimum auto insurance coverage, including liability insurance. The minimum liability insurance amounts are $25,000 for bodily injury or death per person, $50,000 total for bodily injury or death per accident, and $10,000 for property damage per accident. This is often referred to as 25/50/10 liability coverage. New Mexico is an at-fault state, meaning the driver responsible for an accident is financially responsible for any resulting damages.

Minimum liability insurance requirements

In New Mexico, drivers are legally required to have a minimum amount of auto insurance, including liability insurance. This is because New Mexico is a fault-based insurance state, meaning that a driver who causes an accident is responsible for paying compensation to those they have harmed.

The minimum liability insurance requirements in New Mexico are:

• $25,000 for bodily injury to or death of one person
• $50,000 for bodily injury to or death of two or more people
• $10,000 for property damage in any one accident

These requirements are often referred to as "25/50/10 liability coverage". This means that your insurance will cover up to $25,000 of bodily injury liability per person, $50,000 of bodily injury liability total per accident, and $10,000 of property damage liability per accident.

Liability insurance covers injuries and property damage that you cause to others in an accident. For example, if you injure another driver or a passenger in an accident, your liability insurance will cover their medical bills and lost wages up to your coverage limit. It is important to note that liability insurance does not cover your own personal injuries or property damage. If you want insurance to cover your own losses in an accident that you cause, you will need to purchase additional insurance.

While the minimum liability insurance requirements in New Mexico are $25,000/$50,000/$10,000, it is recommended that drivers consider purchasing higher coverage amounts to better protect themselves and their families. The insurance industry recommends having bodily injury liability limits of at least $100,000 per person and $300,000 per occurrence. Additionally, drivers should consider their individual circumstances and needs when determining the appropriate amount of insurance coverage.

Collision and comprehensive insurance

While collision and comprehensive insurance are not mandated by New Mexico state law, they are still important types of coverage to consider. Collision coverage pays for damages to your car resulting from a collision with an object (e.g. a telephone pole or guard rail) or as a result of flipping over. It also covers damage caused by potholes. The average cost is about $290 per year, and collision coverage reimburses you for the costs of repairing your car, minus the deductible.

Comprehensive coverage, on the other hand, covers damage to your car caused by disasters "other than collisions". This includes damage from contact with animals, natural disasters such as earthquakes, floods, hurricanes, tornadoes, and volcanic eruptions, theft of the entire car or parts of the car, and fallen objects such as trees, branches, ice, or projectiles. The average cost of comprehensive coverage is a little over $134 per year, making it a cost-effective option considering the range of damages it covers.

If you finance or lease a vehicle in New Mexico, lenders usually require collision and comprehensive insurance to protect their investment from damage or total loss. It is recommended to do the math and consider the age of your car to determine if purchasing collision or comprehensive coverage is economically sensible.

Uninsured/underinsured motorist coverage

Uninsured motorist bodily injury (UMBI) coverage pays for the medical bills of the policyholder and their passengers injured in an accident with an uninsured motorist. The per-person limit applies to each injured person, while the per-accident limit applies if multiple people in the car are injured.

Uninsured motorist property damage (UMPD) coverage pays to repair or replace the policyholder's vehicle. Instead of UMPD, drivers in New Mexico can use collision insurance, which covers vehicle repairs after an accident.

Additionally, drivers have the option to purchase underinsured motorist coverage, which includes $25,000 in underinsured motorist bodily injury coverage per person (up to $50,000 per accident) and $10,000 in underinsured motorist property damage coverage per accident. Underinsured motorist coverage helps pay for a car accident if the at-fault driver has insurance but not enough coverage.

While not mandatory, uninsured/underinsured motorist coverage can provide valuable protection if you are involved in an accident with an uninsured or underinsured driver. In New Mexico, an average of 22% of drivers on the road don't have car insurance, so there is a 1 in 5 chance the other driver won't have coverage if you get into an accident.

Medical payments coverage

MedPay is similar to Personal Injury Protection (PIP) insurance, as both cover medical expenses regardless of who caused the accident. However, MedPay typically offers less coverage than PIP, excluding provisions for lost wages or assistance with home tasks that the injured person cannot manage. Additionally, MedPay does not require the policyholder to pay any deductibles or copays.

The cost of MedPay is relatively low, often less than $10 per month. It can be purchased even if you already have health insurance or personal injury protection. While MedPay provides benefits, it may not cover as much as other insurance policies. However, it can provide faster coverage if you are found to be at fault for an accident.

When filing a MedPay claim, it is important to contact your insurer as soon as possible after the accident. Provide the necessary information to your health care provider and inform them if you will be billed directly or if the insurance company will be billed. Keep track of all your medical expenses and consult with a personal injury lawyer if needed to ensure you receive the proper medical treatment and navigate the claims process.

Penalties for driving without insurance

In the state of New Mexico, it is illegal to drive any motor vehicle without proof of insurance or financial responsibility. The New Mexico Mandatory Financial Responsibility Act requires all drivers in the state to have minimum liability car insurance or an alternate form of financial responsibility, such as a bond. Driving without either is a misdemeanor and can result in the suspension of your vehicle registration.

The penalty for driving without insurance in New Mexico is a fine of up to $300, up to 90 days of jail time, or a combination of both. If you don't return your license plates and vehicle registration to the New Mexico Motor Vehicle Division (MVD) right after the suspension, that fine can increase to $1,000. Alternatively, the court may penalize you with jail time of up to six months, or a combination of fines and imprisonment.

If you have insurance but cannot prove it when you are pulled over or are in an accident, you are guilty of an "administrative violation", similar to a seat-belt ticket. In New Mexico, your citation might be dismissed if you can provide the court with proof of valid insurance within 15 days of the citation date.

If you are caught driving without insurance, your car insurance premium will likely increase. You can avoid these consequences by meeting New Mexico's minimum car insurance requirements.

Frequently asked questions