New Mexico Minimum Coverage Car Insurance: Requirements and Costs (December 2024)

New Mexico's minimum coverage liability limits are 25/50/10. The average cost of state minimum car insurance coverage is $536 annually or about $45 monthly.

Updated: December 10, 2024

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New Mexico mandates that all drivers have minimum car insurance coverage, which includes $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $10,000 for property damage liability. Since New Mexico is an at-fault state, the driver responsible for the accident bears the financial responsibility for damages.

The average monthly cost for state minimum car insurance in New Mexico is $45. Although the actual premium can vary depending on several factors, New Mexico residents can find the cheapest car insurance in New Mexico options that meet minimum car insurance requirements without compromising on necessary coverage.

TABLE OF CONTENTS

New Mexico Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in New Mexico
Cheapest Companies in New Mexico for Minimum Coverage
Add-On Coverages in New Mexico
Penalties for Driving Without Insurance in New Mexico
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from the New Mexico Office Of the Superintendent of Insurance and Quadrant Information Services to give you the most accurate cost data for a range of New Mexico drivers.

These rates reflect the cost of minimum coverage car insurance requirements in New Mexico as of December 2024.

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New Mexico Minimum Coverage Car Insurance Requirements

In New Mexico, drivers are required to carry minimum coverage auto insurance to operate a vehicle legally. This ensures financial responsibility in the event of an at-fault accident. The minimum amounts specified by New Mexico law are:

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident

As New Mexico is a fault state, the person determined to have caused an accident is responsible for paying the damages incurred by the other party. This system may influence your insurance premium since the coverage must account for the possibility of being at fault in an accident and the associated financial liabilities.

DOES NEW MEXICO REQUIRE COLLISION AND COMPREHENSIVE COVERAGE?

New Mexico does not mandate collision and comprehensive coverage as part of its state minimum auto insurance requirements. However, if you finance or lease a vehicle, lenders usually insist on collision and comprehensive insurance to protect their investment from damage or total loss.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if you were hit by an animal
	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased

The table reflects New Mexico's minimum car insurance requirements, including bodily injury and property damage liability. Specific coverage details depend on the individual policy's terms and conditions.

Average Cost of Minimum Coverage Car Insurance in New Mexico

Many factors influence the cost of minimum car insurance rates, but age is the most significant. In New Mexico, drivers aged 22 to 29 have the highest premiums due to their higher likelihood of being involved in accidents and less driving experience.

The table below presents the average minimum coverage cost in New Mexico per age group, providing a clear overview of how age influences insurance rates in the state.


22-29	$638	$53
30-59	$536	$45
60 +	$546	$46

Cheapest Companies for Minimum Coverage Car Insurance in New Mexico

New Mexico residents seeking economical minimum coverage auto insurance options will find Progressive and State Farm affordable.

Progressive: $353 per year; $29 per month
State Farm: $391 per year; $33 per month

Finding a cost-effective insurance plan is essential, but it's equally important to choose coverage that aligns with your individual needs. Consider exploring the best car insurance in New Mexico for a comprehensive comparison that helps secure the right policy for you.

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Age Group:30-59


Progressive	$353	$29
State Farm	$391	$33
GEICO	$429	$36
Iowa Farm Bureau	$524	$44
Farmers	$531	$44
Kemper	$562	$47
Nationwide	$602	$50
Allstate	$899	$75

Optional Add-On Coverages in New Mexico

New Mexico offers various optional add-on coverages, including collision, comprehensive, uninsured/underinsured motorist, medical payments and rental car reimbursement. While not mandated, these coverages can protect drivers financially from accidents, theft, natural disasters and other unexpected events. Understanding how much car insurance you need can help you make informed decisions for your protection on the road.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance	Damage to your vehicle if you are at fault or damages that exceed policy limits
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault	Vehicle damage or injuries to the other driver
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down	Cost of parts or repairs needed after the tow
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen	Vehicle depreciation or overdue loan payments
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event	Fuel, insurance or other rental extras
Collision Coverage	Repairs to your car after an accident, regardless of fault	Damage due to theft, vandalism or natural disasters
Comprehensive Coverage	Repairs to non-collision damages from events like theft, fire or hail	Damages from a collision or personal injuries
Towing and Labor Coverage	Towing and basic roadside assistance labor costs at the site of your vehicle's breakdown	More extensive repairs needed at a garage
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems	Original parts that came with your vehicle
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident	Non-accidental deaths or injuries
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars	Regular use, like your daily commute

Penalties for Driving Without Insurance in New Mexico

In New Mexico, the cost of a ticket for driving without insurance can vary depending on your history of the offense. You might face a fine for a first offense, whereas repeated violations can lead to harsher penalties. For example, if you've been caught without insurance before, you could expect more severe consequences each time you drive uninsured.

Additional penalties for driving without at least minimum coverage in New Mexico include:

Fine for the violation: If you are caught driving uninsured, you may be fined starting from $300.
Vehicle being towed: Your car may be taken away, and you have to pay for towing and storage costs.
Suspension of vehicle registration: Authorities can suspend your registration and stop you from legally driving your car.
License suspension: Authorities may suspend your driving privileges for a certain period, and once you are eligible, you must pay to restore your license.
Mandatory filing of SR-22: An SR-22 is a certificate proving you have the required insurance, which can raise your premiums for years.
Jail time: If you are involved in an accident without insurance, you can face jail time for up to six months.

It's essential to follow the law by maintaining at least the state minimum coverage for your vehicle in New Mexico.

What to Do if Your Policy Is Canceled

When a car insurance policy is canceled in New Mexico, drivers should immediately seek a new policy to maintain continuous coverage and comply with state insurance requirements. Driving without insurance is illegal; thus, you must avoid using your vehicle until insured again. Contact your former insurance agent or seek quotes from other insurers for swift coverage.

The New Mexico Motor Vehicle Division (MVD) will be notified if you're driving without insurance, as insurers are required to report the status of your policy. If the MVD discovers you're uninsured, you could face fines, vehicle registration suspension and other penalties.

Remember, it's essential to carry at least the state minimum coverage to protect yourself and comply with New Mexico law.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in New Mexico may have been canceled for a few reasons:

Non-Payment of Premium: If you didn't pay your premium on time, the insurance company might cancel your policy.
Fraud: Lying on your insurance application or filing a false claim can lead to cancellation.
License Suspension: If your driver's license gets suspended, most insurers will cancel your coverage.
Moving Out of State: If you move to a different state, your New Mexico policy might be terminated.
Violations or Accidents: A series of traffic violations or accidents may make your insurance company consider you high-risk, resulting in cancellation.

FAQ: New Mexico Minimum Coverage Car Insurance

Here, we address common questions about policy minimums, coverage options and penalties for noncompliance in New Mexico.

What is the minimum car insurance coverage in New Mexico?

In New Mexico, the minimum coverage for car insurance includes $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $10,000 for property damage liability per accident. This state minimum coverage ensures that drivers have a fundamental level of financial protection in the event they cause harm to others or their property while operating a vehicle.

Why does New Mexico require minimum automobile liability coverage for motorists?

New Mexico mandates minimum coverage auto insurance to ensure that motorists have the financial means to cover damages or injuries they may cause in an accident. This requirement protects the policyholder, other drivers and pedestrians from bearing the full cost of potential accidents.

Do you need comprehensive insurance in New Mexico?

In New Mexico, comprehensive insurance is not legally required. However, considering its benefits, drivers may purchase it to protect against theft, vandalism or natural disasters. Review what comprehensive insurance entails and decide if it's right for your needs.

What happens if you drive uninsured in New Mexico?

Driving uninsured in New Mexico can lead to severe penalties. Expect to face fines starting at $300, vehicle registration suspension and possibly a driver’s license suspension. Continuous offenses can escalate sanctions and result in higher costs and longer suspensions.

Carrying state minimum auto insurance is a legal requirement when operating a vehicle in New Mexico. If caught driving without it, aside from immediate fines and suspensions, you'll be held personally liable for any damages incurred during an accident.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick 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 knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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