New Mexico Car Insurance Laws—All You Need to Know

In New Mexico, all drivers must carry liability coverage following a 25/50/10 pattern.
Written by Olivia Rose
Reviewed by Kathleen Flear
Dec 9, 2021
In New Mexico, drivers must carry liability insurance with limits of $25,000 bodily injury coverage per person, $50,000 bodily injury coverage per accident, and $10,000 property damage coverage per accident.
Car insurance
might seem trivial, though it’s anything but. Property damage and medical costs can add up quickly after an accident, and without insurance, you’re responsible for paying those bills out of pocket if you were at fault.
Good thing
Jerry
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trusted comparison tool
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Now, here’s all you need to know about New Mexico car insurance laws. 

Car insurance requirements in New Mexico

All drivers in New Mexico must hold liability coverage.
Minimum liability coverage: 25/50/10
$25,000 bodily injury per person
$50,000 bodily injury per accident
$10,000 property damage per accident

Liability coverage in New Mexico

Liability coverage
pays for medical expenses and property damages for other drivers if you are at fault in an accident. This might include things like a busted bumper or an ambulance bill. 
Liability coverage does not cover your medical expenses or property damage if you are at fault in an accident.

State-mandated car insurance limits

An insurance limit is the maximum amount of coverage your provider will give you in a particular coverage category. The limits in New Mexico are as follows:
  • $25,000 in
    bodily injury coverage
    per person means that your insurance provider will contribute no more than $25,000 in bodily injury coverage per person in an accident where you are at fault
  • $50,000 in bodily injury coverage per accident means that your insurance provider will contribute no more than $50,000 in bodily injury coverage **in total** per accident in an accident where you are at fault
  • $10,000 in
    property damage coverage
    per accident means that your insurance provider will contribute no more than $10,000 in property damage coverage per accident in an accident where you are at fault
You can—and should—increase these limits if you can afford to. While a higher limit will mean a slight increase to your premium, it offers significantly more coverage to protect you in case of a bad accident.
Key Takeaway You must have liability coverage with $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage coverage per accident if you are driving in New Mexico. 

Do New Mexico’s required insurance minimums provide enough coverage?

New Mexico’s required insurance minimums are low compared to other states. You’re best off purchasing both higher limits and additional coverage
A $10,000 property damage liability limit is extremely low and will be immediately exhausted if you ever cause a collision that totals even one vehicle worth more than $10,000 (which is quite likely). 
And $25,000 per person and $50,000 per accident bodily injury liability limits can be hit quickly if you harm multiple people in a collision—especially if anyone goes to the hospital.
Because New Mexico is an at-fault state, at-fault drivers (and their insurers) are liable for all damages and expenses to victims resulting from an accident. This is another good reason to make sure you have high limits for your liability insurance.
Key Takeaway New Mexico’s required insurance minimums are rather low, so you’re better off purchasing higher limits to protect yourself in the event of an accident. 

New Mexico is a diminished value state

New Mexico is a diminished value state, which means victims of car collisions can file claims with the at-fault driver’s insurance provider for loss in value of their vehicle after an accident. 
To file a claim for diminished value in New Mexico, you must meet the following criteria:
  • You cannot be the at-fault driver of the collision
  • You need documentation to process your claim, which includes photos, records of repairs made to your car, and proof of the value of your car by a reputable source
  • Your claim must be made within four years

Penalties for driving without insurance in New Mexico

Driving without car insurance in New Mexico can result in one or more of the following penalties:
  • Up to a $300 fine
  • Imprisonment for up to 90 days
  • Suspension of your
    vehicle registration
  • Confiscation of your license plate

Optional auto insurance coverage in New Mexico

Where to buy car insurance in New Mexico

If you need car insurance in New Mexico,
Jerry
is here to help!
As a
car insurance
expert and
trusted comparison tool
, Jerry is the easiest and most effective way to find an insurance policy that is customized for you.
After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. So why do all that extra work when Jerry can do it better?
"So. Easy. Seriously, this service is the best. We are now saving close to $500 a year on car insurance with our same great coverage. My anxious self avoided awkward cancellation calls with my previous provider.
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