Insurance requirements for registering a car in New Mexico
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All registered vehicles in New Mexico must be insured against liability or "financial liability". The minimum financial liability requirements for drivers in New Mexico are as follows:
Minimum $25,000 for injury or death per person; this means you need to carry at least $50,000 with you for the fewest possible number of people involved in the accident (two drivers).
$10,000 minimum for property damage liability
This means that the total minimum financial liability you will require is $60,000 to cover personal injury or death, as well as liability for property damage.
- New Mexico law also requires that your insurance policy include uninsured or underinsured motorist coverage that will protect you if you are involved in an accident with a driver who does not have the legally required liability insurance. You have the option to cancel this coverage in writing if you wish.
New Mexico Motor Vehicle Insurance Plan
New Mexico has a government program called the New Mexico Motor Vehicle Insurance Plan that helps ensure that high-risk drivers get the auto insurance they require by law. If the insurers have denied the driver, the driver may apply under this program for auto insurance.
proof of insurance
When you register your vehicle with the New Mexico Department of Motor Vehicles, you must show proof of insurance. Acceptable proof of insurance coverage includes:
Valid insurance card issued by an authorized insurance company
Copy of current insurance policy
Letter from the insurance company on company letterhead confirming your insurance policy
Electronic verification system
New Mexico uses an electronic verification database to track the insurance status of all state-registered vehicles. Your insurance company is required to report changes to your insurance policy.
If the database does not prove that you have the required legal insurance, you will be given a specific deadline to update your information in the system. If you fail to update your information in the system, your registration will be suspended.
Penalties for Violation
If your vehicle registration has been suspended due to an insurance violation, you must obtain valid insurance and ask the insurer to update the information in the electronic database. You will also have to pay a $30 recovery fee.
Cancellation of insurance
If you need to cancel your insurance while your vehicle is in storage or repair, you can file a signed non-use statement with the New Mexico State Insurance Identification Database. This means that you will not be subject to any fines or disqualification if you do not drive this vehicle on the roads of New Mexico. You must complete an affidavit annually to maintain your uninsured registration.
If you cancel your insurance because you sold a car, you must first send a letter confirming your mandatory car insurance to the Department of Motor Vehicles Financial Responsibility Section.
For more information, or to register a vehicle or renew your vehicle registration, contact the New Mexico Department of Motor Vehicles through their website.
