New Mexico Car Insurance Requirements (Updated for 2025)
New Mexico law requires all drivers to maintain minimum liability insurance. Failure to comply can result in fines, license suspension, and registration revocation. It’s essential to understand the required coverage levels to remain legal on the road.
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Minimum Liability Coverage in New Mexico
As of 2025, New Mexico requires drivers to carry the following minimum liability coverage:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $10,000 per accident
This is commonly referred to as “25/50/10” coverage.
Uninsured/Underinsured Motorist Coverage
New Mexico insurers must offer UM/UIM coverage, but it is optional. You may reject it in writing. This coverage protects you if you’re hit by a driver without enough insurance.
Optional Coverages to Consider
- Comprehensive Coverage
- Collision Coverage
- Medical Payments (MedPay)
- Rental Reimbursement
- Roadside Assistance
Proof of Insurance Requirements
New Mexico drivers must carry proof of insurance and present it during traffic stops, accidents, and vehicle registration. The state also operates an electronic insurance verification system to monitor compliance.
Penalties for Driving Without Insurance
- First Offense: Fines up to $300, license suspension, and vehicle registration revocation
- Subsequent Offenses: Higher fines and longer suspensions
- Reinstatement: Requires proof of insurance and payment of fees
SR-22 Filing Requirements
If your license is suspended due to a lapse in coverage or an uninsured accident, you may be required to file an SR-22—a certificate of financial responsibility—for up to three years.
Compare Auto Insurance Quotes in New Mexico
Premiums in New Mexico vary depending on your ZIP code, vehicle, driving record, and policy type. Use the tool below to compare quotes and find the most affordable coverage for your needs:
FAQs
Is car insurance required in New Mexico?
Yes. All drivers must carry liability insurance to legally operate a vehicle in the state.
Can I reject uninsured motorist coverage?
Yes, but only in writing. UM/UIM coverage is optional but strongly recommended for added protection.
What is an SR-22 in New Mexico?
An SR-22 is a certificate your insurer files with the state to prove you carry the required insurance after a serious violation or lapse in coverage.