New Mexico Car Insurance Requirements

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Like most of the Western states, New Mexico shows some flexibility where car insurance is concerned. They allow for one form of financial responsibility proof besides auto insurance. In the following paragraphs, one will understand the financial responsibility option, liability insurance otherwise required, proof of insurance necessary, penalties for not meeting the driver’s obligation, and legal environment for New Mexico.

New Mexico Financial Responsibility

There are only two means of establishing financial responsibility in the state of New Mexico. On the one hand, a person is allowed to deposit a $60,000 surety bond or cash with the office of the state treasurer. The other choice is of course to opt for traditional liability insurance.

New Mexico Liability Insurance

The majority of New Mexico residents choose to buy and carry liability insurance. For the many who elect to do so, the state has established minimums. These are listed as follows:

* Bodily injury coverage for the injuries or death of a single individual per accident of $20,000.
* Bodily injury coverage for the injuries or death of multiple individuals per accident of $50,000.
* Property damage coverage per accident of $10,000.

Additional forms of insurance coverage are also available optionally. These include uninsured motorist coverage and collision coverage. New Mexico is well known as the state that contains the most uninsured motorists in all of America. A shocking twenty-nine percent of the state’s residents do not have auto insurance. Because of this, considering uninsured motorist coverage is a smart idea.

New Mexico Proof of Insurance

Once a driver has purchased his or her insurance and had the car registered, the individual is required to have his or her insurance proof or the alternative deposit receipt in the vehicle all of the time. The insurance company will furnish a customer an insurance card, assuming the liability insurance option is chosen. The card will contain all necessary information that a police officer would need if he or she stopped the driver, such as vehicle information, policy number, and the customer’s name.

New Mexico Penalties for Not Having Insurance or Financial Responsibility

There are a few penalties in store for those do not maintain the mandatory insurance or responsibility. Should a driver be stopped by a police officer and not have his or her insurance proof, it can be submitted later showing that the driver had insurance when he or she was actually stopped. If the driver is actually driving without insurance, penalties include being charged with a misdemeanor or alternative criminal charges, the loss of vehicle registration, and fines in excess of $300.

New Mexico Legal and Regulatory Environment

New Mexico has set up its Insurance Identification Database, also known as the IIDB. Insurance companies have to alert the state if a driver has the necessary insurance or not. The insurance company will update the database if a person allows his or her insurance to lapse. The state will send the driver a letter if it learns that such insurance has been dropped. One can learn more by going to their website at the following address:

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