New Mexico’s auto insurance laws are designed to encourage all drivers to keep their cars properly covered in order to reduce the amount each driver must pay in the event of an accident. This is to ensure that all road users are protected and also works to keep insurance premiums low by promoting safe driving.
New Mexico car insurance requirements include a provision that you must provide proof of insurance or other financial liability at the time you register your vehicle. Driving without proof of insurance or financial liability is a serious offense and can result in severe penalties.
Since New Mexico is a damage state, a driver at fault must be found in every accident. For this reason, New Mexico auto insurance laws require minimum liability coverage to ensure that all drivers are covered. The minimum coverage required is $25,000 for injury or death to one person, $50,000 for injury or death to more than one person and $10,000 for property damage.