New Mexico Minimum Car Insurance Requirements
The state of New Mexico mandates that all drivers carry a certain minimum amount of liability insurance in order to drive legally. This is not too uncommon, and such insurance protects both you and other drivers. Outlined below are the mandatory minimum liability insurance coverage amounts you must carry as a driver in New Mexico.
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $10,000 property damage per accident
Failure to provide proof of insurance when asked by law enforcement can result in you being hit by some hefty penalties. It is also important to remember that if you have an auto loan or lease your vehicle, your lender or leasing company may require you to carry additional insurance.
New Mexico Liability Car Insurance
Liability insurance is the only type of insurance New Mexico requires all drivers to carry. This insurance will cover bodily injuries and property damage you cause to another drive in an accident you are found to be at fault for. Liability coverage will pay for things like lost wages and auto repair bills. Keep in mind that your liability insurance plan will never cover any of your injuries or damage to your property.
Diminished Value Policy in New Mexico
New Mexico is one of 15 states that is a diminished value state. This means that drivers can try to recover diminished value from the at-fault driver’s insurance company if they experience losses when selling their vehicle. Following an accident, even if your car has been fully repaired, its value has still taken quite the hit. If you see evidence of these losses during the selling process, you can make a diminished value claim with the other person’s insurer.
In order to file such a claim in the state of New Mexico, you must meet the following requirements:
- You were not responsible for the accident
- You can provide documentation of the accident, including photos and records of repairs
- The accident happened no longer than 4 years ago
- New Mexico does have uninsured motorist coverage for such claims.
Car Insurance Limits in New Mexico
Coverage limits refer to the maximum amount of money your insurance company will payout in the event of a claim. Limits also are the minimum amount of insurance a state mandates all drivers must carry. In the state of New Mexico, those limits are expressed as 25/50/10. Each number on a liability insurance policy represents a different aspect of it. A look into those categories and what they cover can be found below.
- Bodily injury per person is the maximum amount of money your insurer will pay for one person’s injuries in an accident you caused.
- Bodily injury per accident is how much your insurance company will cover for all injuries you cause in an accident.
- Property damage per accident is the amount that your insurance company will payout for damages to the property you cause in an accident.
Is New Mexico’s Mandatory Car Insurance Minimums Enough Coverage?
The mandatory minimum liability insurance coverage for the state of New Mexico is pretty average when compared to other states, but this does not mean it is good. Carrying only the state-mandated insurance amounts can leave you and your assets at risk. It is highly recommended you increase coverage limits and look into policy add-ons when going about shopping for car insurance. Anything that is not covered by your insurer will more likely than not land back in your lap. That can be detrimental to your finances. It would be best to prepare for accidents as best as you can.
Driving Without Proof of Car Insurance in New Mexico
As touched on briefly in a previous section, driving without insurance in the state of New Mexico has some serious consequences. Listed below is what you could be facing should you choose to drive without car insurance in New Mexico.
- Up to 90 days in jail (up to 6 months if it is your second or subsequent offense)
- A fine ranging from $300-$1,000, depending on your case
- License suspension
- SR-22 Requirement
Additional Types of Car Insurance in New Mexico
Since New Mexico only mandates drivers to carry liability insurance, it would be worth it to look into some insurance policy add-ons in order to strengthen your coverage. Listed below are some common types of car insurance you can add to your plan.
- Collision: This coverage protects your car against damage it sustains when in an accident with another vehicle.
- Comprehensive: Comprehensive insurance covers damage your vehicle sustains when it is not in use. Some perils covered by this insurance include theft and extreme weather.
- Medical Payments: This insurance will pay medical bills you and your passenger(s) accumulate following an accident.
- Gap Coverage: This coverage can help cover the difference in what you own on your auto loan and what actual cash value of your vehicle. This could come in handy if your car is totaled before you have the chance to pay off your loan.
- Roadside Assistance: If your car breaks down on the highway, roadside assistance can off a lending hand by resolving technical issues your vehicle is facing.
- Uninsured/Underinsured Motorist Coverage: Despite car insurance being mandatory in nearly every state, some people choose to drive without it. If you end up in an accident with such a driver, it can be frustrating. Uninsured/underinsured motorist coverage can help pay for expenses you have following an accident with a driver who lacks proper car insurance.
Car Insurance is Important For Any New Mexico Driver
Not only does carrying a car insurance policy keep you on the right side of the law, it always assures you and your assets have some protection should you end up in a collision. Failure to possess such a policy is illegal and leaves your finances at risk. You should also make an effort to increase coverage limits and utilize policy add-ons to make sure you are getting the full range of coverage you need as a driver.
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*This product may not be available in every state, please call an agent for more information.