New Mexico Insurance

Basic Auto Insurance

According to the New Mexico Motor Vehicle Division, the basic auto insurance that you need to have is:

• $25,000 for bodily injury to or death of one person,
• $50,000 for bodily injury to or death of two or more persons, and
• $10,000 for property damage in any one accident.

This is the absolute minimum that is acceptable within the state. Most insurers have standard and basic policies. Standard policies may cost more but will provide additional benefits such as:

• Collision coverage and additional property damage coverage
• Comprehensive coverage
• Additional Bodily injury liability coverage
• Uninsured/underinsured motorist coverage

Basic auto insurance will meet the state requirements for liability coverage and can be purchased through any New Mexico licensed insurance provider. Out-of-state insurance is allowed if it meets the basic requirements.

If you fail to have at least basic insurance, your vehicle registration will be rescinded, and you will not be able to drive it. You’ll have to provide proof of insurance and pay a $30 fee to have your registration reinstated.

Required Insurance Documents

It is important to carry your insurance card on you. New Mexico is one of the few states where police are not required to accept electronic proof of insurance. The required document should be issued as a paper copy and be available for each vehicle on your policy. The state also verifies insurance through the New Mexico Insurance Identification Database (IIDB).

Your Insurance Card

Your insurance card has to be provided on paper upon request. You may need to present the card:

• If you are stopped by a police officer during a spot check
• If you are stopped for a traffic violation
• When you’re involved in a crash
• Before a vehicle inspection

If you don’t present the card, then you could be fined. Additionally, if you fail to carry insurance, then you could have your license suspended, be subject to insurance surcharges, be fined, or be required to complete community service.

Insurance Fraud

Insurance fraud is taken seriously in New Mexico and will be prosecuted as a crime. New Mexico defines insurance fraud as intentionally providing false, incomplete, or misleading information to obtain insurance benefits. Penalties depend upon the amount of loss and can include

• Up to $10,000 in fines
• A jail or prison sentence of up to nine years
• Restitution

How to Report Fraud to the State

If you suspect someone you know is committing fraud, you can report it to the state Office of Superintendent of Insurance Criminal Division online or by calling 505-795-1755. Fraud makes insurance rates higher for everyone in New Mexico, which is why it’s important to report it. Those tips are confidential and kept anonymous.