Car Insurance in New Mexico

For drivers in New Mexico, car insurance is required to fulfill financial responsibility of car ownership, and is required to legally operate a vehicle. The following minimum liability auto insurance requirements have to be met:

  • Bodily injury or death limit of $25,000 for one individual
  • Bodily injury or death limit of $50,000 for more than one individuals in one accident
  • Property damage limit of $10,000 in one accident

Car owners must purchase a car insurance policy from a licensed insurance agency. When you purchase coverage, the New Mexico Insurance Identification Database (IIDB) will be electronically notified. If you do not wish to buy insurance, you can deposit $60,000 in the form of cash or surety bond with the New Mexico State Treasurer’s Office. Out-of-state insurance is acceptable as long as it meets the minimum requirements.

New Mexico car insurance laws require you to provide proof of insurance when registering your car. This can be a current auto insurance identification card, a copy of the current insurance policy, or a letter from your insurance carrier on a company letterhead that details all your insurance information. Insurance rates are determined by various factors like the car’s make and model, driver’s age, and driving history.

If you do not maintain minimum liability insurance, your vehicle registration can be suspended. You will receive a notice for Verification of Mandatory Automobile Insurance when you drop insurance. Thirty days after that, you will be sent a Notice of Suspension of Registration. If you do not wish to maintain registration on your car, you must return the vehicle registration and the license plate to the Motor Vehicle Division within ten days of receiving this letter. If you fail to comply with this rule, you will face criminal penalties as well. If you are caught driving without insurance, you will be fined up to $300 or more.

In order to regain driving privileges if your registration is suspended, you will have to provide proof of insurance electronically. You will then be eligible to apply for registration reinstatement. The reinstatement fee for a suspended registration of $30 has to be paid as well.

What are the New Mexico car insurance requirements for proving that you have a policy when registering your vehicle?

It is very important that you have proof of insurance at the time of registering your vehicle. This can be demonstrated with three forms, namely a current or valid auto-insurance card, an exact copy of your valid insurance policy or an official letter from your insurance provider, stating that you have sufficient insurance coverage.

How low should auto insurance quotes New Mexico be in order to be considered cheap?

The average rates of car insurance are fairly high in New Mexico. So much so that they are around $100 more than the national average. Typically, vehicle owners in New Mexico pay around $1,900 annually for insurance coverage. So anything lower than this rate can be considered cheap but that too according to individual circumstances as well as the driving record and the type of demographic and zone that you belong to.

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