New Mexico Auto Insurance Guide
Whether you’re hiking in Cibola National Forest, looking for UFOs in Roswell, doing business in Albuquerque, exploring Carlsbad
Caverns or discovering historic Santa Fe, the Land of Enchantment has miles of open road and places to go. From Shiprock to Las
Cruces, Gallup to Clovis and all points in between,
car insurance
is crucial to being a responsible New Mexico driver.
Auto Insurance Resources for NM State Residents
As of 2010, there were over 1.2 million registered vehicles in the Land of Enchantment. The Insurance Research Council
estimates that 29% of New Mexico drivers are uninsured, one of the highest rates in the nation! In the most current
statistics available, the New Mexico Department of Transportation Traffic Safety Bureau reported at total of 49,613
traffic accidents in 2002. The majority, 32,017, involved property damage only; 17,198 involved injuries and 398 were
fatal. Driver inattention and tailgating were the most common causes, followed by speed and alcohol use. Uninsured,
inattentive and reckless drivers are good reasons to make sure you have enough car insurance while living and driving
in the Land of Enchantment.
New Mexico State Minimum Car Insurance
New Mexico state law requires you to carry a minimum amount of car insurance or face severe penalties. New Mexico has
a tort-based system. That means if you cause an accident, you can be sued. While New Mexico does not require you to carry
uninsured/underinsured motorist coverage, additional personal liability or Collision and Comprehensive, if you own property
or other valuable assets, you would be wise to supplement the minimum requires shown below:
- $25,000 bodily injury per person per accident
- $50,000 bodily injury for all persons per accident
- $10,000 property damage liability
New Mexico Car Insurance Laws
New Mexico law requires that you carry proof of New Mexico auto insurance in your vehicle and produce it if a law
enforcement officer asks to see it. Driving without minimum New Mexico car insurance is a misdemeanor and carries a
fine up to 300. You will also lose your vehicle registration and have to pay a fee to reinstate it.
To deal with the high rate of uninsured drivers, New Mexico created an Insurance Identification Database in 2002,
which compares all registered vehicles against a list of insured vehicles provide by insurance companies in New Mexico.
If your vehicle is shown as registered but you aren’t listed as having New Mexico auto insurance, the state will notify
you by mail. Failure to respond or show proof of insurance carries a $100 fine.
Regulating Agency and References
New Mexico Public Regulation Commission/Insurance Division
This agency is responsible for regulating vehicle insurance policies sold in New Mexico. For more information, visit
their website at
www.nmprc.state.nm.us/id.htm/
New Mexico Motor Vehicle Division
This is the agency responsible for licensing drivers and registering vehicles. You can learn more about New Mexico
auto insurance requirements, penalties and related information at
www.mvd.newmexico.gov//
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC
provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government
officials who regulate the conduct of insurance companies and agents in their respective states or territories.
Visit NAIC at www.naic.org
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at
www.iii.org/
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