Car Insurance Requirements in New Mexico (2025)
New Mexico requires drivers to have minimum liability coverage of 25/50/10.
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Nearly every U.S. state, including New Mexico, requires drivers to carry car insurance. Because requirements vary by state, it’s important to know your state’s insurance laws.
Here’s what you need to know about New Mexico car insurance requirements to ensure you’re adequately protected.
New Mexico car insurance requirements
In New Mexico, drivers must carry personal liability insurance with minimum coverage limits of 25/50/10.1 As an alternative to liability car insurance, you can get a surety bond or make a cash deposit of $60,000 with the New Mexico State Treasurer.
The following table shows the minimum car insurance requirements in New Mexico.
Bodily injury liability insurance
Bodily injury liability insurance covers your financial responsibility if you cause an accident that injures other drivers or their passengers. It pays for the injured person’s medical expenses, lost wages, and other non-medical costs.2
This coverage includes two separate limits: one for a single person’s injuries in an accident and a second for all injuries in an accident. In New Mexico, a minimum-coverage policy provides $25,000 for one person’s injuries and $50,000 for all injuries in an accident.
It’s important to know that bodily injury liability insurance covers only injuries to others. If you or your passengers are hurt in an accident you caused, it won’t pay for your medical bills.
Property damage liability insurance
Property damage liability insurance pays to repair or replace someone else’s property if you cause an accident that damages it. For example, if you hit another car and cause $5,000 in damage, your property damage liability pays for repairs up to your policy limits.
This coverage also pays for damage to storefronts, buildings, fences, mailboxes, and other property your vehicle hits. In New Mexico, a minimum-coverage liability policy includes $10,000 for all property damage you cause in an accident.
Property damage liability insurance doesn’t cover your vehicle. If you’re at fault in an accident and your car is damaged or totaled, optional collision insurance covers the cost of repairs or replacement.
New Mexico car insurance laws/programs
New Mexico drivers who can’t get insurance because of their credit history or driving record can buy coverage through the New Mexico Motor Vehicle Insurance Plan. This program allows New Mexico residents to get auto insurance even if they’re unable to purchase a policy on the voluntary market due to certain risks.
The New Mexico Motor Vehicle Insurance Plan is managed by the Western Association of Automobile Insurance Plans (WAAIP). To get coverage in New Mexico, you can call the WAAIP at 1 (800) 227-4659 and an agent will connect you with a company that will insure you.
Do you need more than state-minimum coverage in New Mexico?
A state-minimum insurance policy in New Mexico covers other people’s losses when you cause an accident. Many insurance professionals recommend buying higher liability limits than your state requires to protect yourself financially.3
A liability-only policy doesn’t cover your vehicle repairs, but it may be sufficient if your car is older and you can afford to replace it. While more expensive, a full-coverage insurance policy covers your losses when you cause an accident.4
Full coverage provides more protection, but it has a higher premium than liability-only insurance, which is the cheapest coverage you can get. A full-coverage insurance policy in New Mexico averages $144 per month, according to Insurify data.
Penalties for driving without proof of insurance in New Mexico
New Mexico will suspend your registration if you drive without auto insurance. You’ll receive a Notice of Suspension of Registration letter in the mail, and within 10 days, you must return your vehicle registration and license plates to the motor vehicle division (MVD).
Failure to do so within the allotted time frame may lead to additional consequences, including criminal penalties. To reinstate your registration, you’ll need to purchase auto insurance and pay a $30 fee.
Cheapest liability-only car insurance in New Mexico
Liability insurance covers another person’s injuries and property damage when you cause an accident. In New Mexico, the law requires all drivers to carry a minimum amount of liability insurance.
The average cost of liability car insurance in New Mexico is $68 per month, but rates vary by insurance company and your driver profile. The table below shows the cheapest average liability insurance rates from several of the best insurers in New Mexico.
Cheapest full-coverage car insurance in New Mexico
A full-coverage policy includes liability, collision coverage, and comprehensive coverage. While a full-coverage policy is optional for most drivers, lenders typically require it if you lease or finance your car.5
In New Mexico, the average cost of full-coverage car insurance is $144 per month. See below for average full-coverage quotes from a few of the cheapest insurance companies.
Optional car insurance coverages to consider
If you own a vehicle in New Mexico, having adequate coverage can protect you if you have an accident or need to file another type of claim. These optional car insurance coverages can help fill in the gaps: