New Mexico Auto Insurance

New Mexico Auto Insurance Laws

New Mexico auto insurance laws require drivers to provide the minimum mandatory liability auto insurance on any registered vehicle in the state. This insurance must be obtained through an authorized insurance company which has received approval from the state of New Mexico.

No vehicle will be registered in the state of New Mexico without proof of the minimum liability auto insurance. The minimum liability auto insurance coverage in New Mexico is $20,000.00 of bodily injury insurance for each individual, $50,000.00 for two or more injured people and $10,000.00 for property damage. Any auto insurance policy purchased in New Mexico must include the minimum liability amounts. You may choose to buy a surety bond or deposit $60,000.00 with the state as an alternative to the minimum mandatory liability insurance policy, as that’s unique in New Mexico auto insurance requirements.

You must carry proof of insurance with you at all times. Uninsured and underinsured motorist is not required by New Mexico law but the insurance company must offer you the option to purchase this coverage when you buy your minimum coverage. Should you choose not to take this option, you will have to sign a paper stating that you turned down the coverage. As in most states, New Mexico auto insurance laws do not require comprehension and collision coverage.

More Information on New Mexico Auto Insurance Laws

New Mexico state laws require all vehicles to be covered by the minimum liability coverage. This law also applies to rental vehicles. Your insurance policy usually covers rental vehicles. The credit card you use to rent the car may also cover the insurance on the vehicle. If this is not the case, you will be required to purchase the minimum liability auto insurance policy from the rental car company. The rental company insurance will be about $7.00 to $14.00 per day. Be sure to carry the rental agreement in the car at all times. This is your proof of insurance should you be involved in an accident or get stopped for a traffic violation.

If you are involved in an accident or experience any type of traffic stop in the state of New Mexico, the police officer will request proof of insurance. You must have the proof of insurance even if you are not at fault. The state of New Mexico monitors insurance coverage via the New Mexico Insurance Identification Database. All insurance policies in the state are reported electronically by the insurance company as well as any lapses in policy coverage. Lack of insurance could result in fines, loss of your license and revocation of your registration.

You must obtain the minimum insurance before you register your car, or it’s violating New Mexico auto insurance laws. You will not be allowed to register your car without proof of insurance. There is no wait time allowed for you to insure your vehicle. Off-highway vehicles and non-operational vehicles do not require the minimum liability auto insurance.


The penalties for not carrying current minimum liability auto insurance in the state of New Mexico include fines, loss of your registration, and being charged with a misdemeanor. The fine is $300.00. The suspended registration will mean that no one can operate your vehicle.


Your proof of insurance should be kept in the car at all times. This proof needs to include the name of the insurance company and the policy holder’s name. It also needs to have the make, model, and year of the vehicle being covered on it as well as the individuals covered by the policy. The vehicle’s VIN number and the dates of coverage are also required to assure the law enforcement officer that the insurance is current, and adhering to the rules make a person is compliance of New Mexico auto insurance laws. Insurance identification cards, a current copy of the policy, or a financial responsibility certificate from the state are acceptable forms of proof.