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New Mexico Car Insurance Laws: Minimum Coverage, Penalties and SR-22

New Mexico car insurance law: minimum liability limits, fault or no-fault, uninsured motorist coverage, proof of insurance, penalties for driving uninsured, SR-22, title and registration.

Quick answers for New Mexico

Minimum coverage required
Under New Mexico's Mandatory Financial Responsibility Act, an owner may not let an uninsured vehicle be driven, and no one may drive one. NMSA 1978, §§66-5-205, 66-5-208
At-fault or no-fault
New Mexico uses the at-fault (tort) system: the driver who causes a crash is responsible for the resulting injuries and damage, paid through liability insurance. Alabama Department of Insurance, State Auto Insurance Laws (national table)
Driving without insurance
Driving, or allowing the driving of, an uninsured vehicle is a misdemeanor punishable by a fine of up to $300, up to 90 days in jail, or both; NMSA 1978, §§66-5-205, 66-5-205.1, 66-8-7; New Mexico MVD, Insurance FAQs
SR-22 filing
New Mexico may require persons convicted of certain motor vehicle offenses, or who have failed to pay accident judgments or settlements, to file evidence of financial responsibility with the MVD, by filing evidence of an insurance policy, a surety bond, or a certificate of a cash deposit. NMSA 1978, §§66-5-205(D), 66-5-218, 66-5-229(A)-(B)

Last verified: 2026-10-27

Required coverage

Minimum coverage requiredUnder New Mexico's Mandatory Financial Responsibility Act, an owner may not let an uninsured vehicle be driven, and no one may drive one. Required evidence of financial responsibility is 25/50/10: $25,000 for bodily injury or death of one person, $50,000 for bodily injury or death of two or more people in one accident, and $10,000 for property damage. Instead of an insurance policy, an owner may use a surety bond or a cash deposit with the state treasurer totaling $60,000.
Chapter 66 (Motor Vehicles), unannotated NMSA on NMOneSource; see sections 66-5-205 and 66-5-208.
Source: NMSA 1978, §§66-5-205, 66-5-208
At-fault or no-faultNew Mexico uses the at-fault (tort) system: the driver who causes a crash is responsible for the resulting injuries and damage, paid through liability insurance. The Alabama Department of Insurance's national table of state auto insurance laws lists New Mexico among the "Tort States."
Source: Alabama Department of Insurance, State Auto Insurance Laws (national table)
Uninsured motorist coverageEvery auto liability policy for a vehicle registered or principally garaged in New Mexico must include uninsured motorist coverage, which also includes underinsured motorist coverage, at no less than the minimum liability limits for bodily injury and property damage (and up to the policy's liability limits if the insured wants). The named insured has the right to reject UM coverage; if rejected, it need not be added to a renewal by the same insurer unless the named insured asks in writing. UM property damage coverage may exclude the first $250 of loss.
Source: NMSA 1978, §66-5-301
Proof of insuranceOwners and drivers must carry evidence of financial responsibility in the vehicle at all times while it is driven on New Mexico highways; when coverage is an insurance policy, evidence in print or on a portable electronic device is acceptable, and showing it on a device is presumed not to be consent to access other contents of the device. Insurers report policies to the New Mexico Insurance Identification Database (IIDB), and proof of insurance is required to register a vehicle.
IIDB: https://www.mvd.newmexico.gov/vehicles/insurance/
Source: NMSA 1978, §66-5-229(C)-(D); New Mexico MVD, Insurance

Driving without insurance and SR-22

Driving without insuranceDriving, or allowing the driving of, an uninsured vehicle is a misdemeanor punishable by a fine of up to $300, up to 90 days in jail, or both; a person is not convicted if they produce in court evidence of insurance valid when the citation was issued. A driver cited after an accident has the license plate removed and receives a 30-day temporary operation sticker; the plate is returned after proof of insurance and a $25 reinstatement fee (waived if proof of coverage in effect at the time is provided within 15 days). If the IIDB shows a vehicle as uninsured, the MVD sends a verification letter and, if not resolved within 30 days, suspends the registration; the owner must return the registration and plate within ten days of the suspension notice.
IIDB suspension process: https://www.mvd.newmexico.gov/vehicles/insurance/
Source: NMSA 1978, §§66-5-205, 66-5-205.1, 66-8-7; New Mexico MVD, Insurance FAQs
SR-22 filingNew Mexico may require persons convicted of certain motor vehicle offenses, or who have failed to pay accident judgments or settlements, to file evidence of financial responsibility with the MVD, by filing evidence of an insurance policy, a surety bond, or a certificate of a cash deposit. The MVD may waive the filing requirement after one year of providing satisfactory evidence, unless an accident claim is pending or a judgment is unpaid.
Source: NMSA 1978, §§66-5-205(D), 66-5-218, 66-5-229(A)-(B)

Your rights with insurers

Cancellation and nonrenewalUnder the Superintendent of Insurance's rule, once a policy has been in effect 60 days, an insurer may cancel only if the policy was obtained by material misrepresentation or fraud; willful or negligent acts substantially increased the hazard; the driver's license of the named insured or a household or regular driver was revoked or suspended; or the named insured presented a fraudulent claim, with at least 15 days' written notice stating the reason. Cancellation for a substantial change in the risk requires at least 30 days' written notice with the reason. A nonrenewal notice must be mailed at least 30 days before the policy expires.
Source: 13.8.4.8-13.8.4.9 NMAC
Total loss rulesA "salvage vehicle" is one damaged (excluding hail damage, under department rules) to the point that the owner, leasing company, lender or insurer considers it uneconomical to repair and that is not then repaired by the owner, or one deemed uneconomical to repair for which an insurer made a total loss payment, whether or not it is later repaired. Salvage and nonrepairable vehicles may not be sold without a branded title, and nonrepairable vehicles may be sold only to licensed wreckers and may not be rebuilt for road use.
Source: NMSA 1978, §66-1-4.16 (definition) and §66-3-10.1

Title and registration

Transferring a car titleWhen a registered vehicle is sold, its registration expires; the seller must notify the Motor Vehicle Division of the sale (date, buyer's name and address, vehicle description) and record the actual odometer mileage on the transfer document. Before driving the vehicle, the buyer must present the registration and the properly assigned title to the MVD and obtain a new title and registration; failing to apply within thirty days of the transfer is a penalty assessment misdemeanor. A title fee applies (and excise tax).
MVD: https://www.mvd.newmexico.gov/vehicles/vehicle-registration/how-to-title-a-vehicle/
Source: NMSA 1978, §§66-3-101, 66-3-103; New Mexico MVD, How to Title a Vehicle
Registering after you moveA person with a valid driver's license from their home state may drive in New Mexico but must obtain a New Mexico license upon becoming a resident. Vehicles registered in New Mexico must carry insurance from a company licensed in New Mexico to show as insured in the state's insurance database.
Source: NMSA 1978, Chapter 66, Article 5 (driver license exemptions); New Mexico MVD, Insurance FAQs

Car Insurance & Vehicle Laws FAQ

What is the minimum car insurance required in New Mexico?
Under New Mexico's Mandatory Financial Responsibility Act, an owner may not let an uninsured vehicle be driven, and no one may drive one. Required evidence of financial responsibility is 25/50/10: $25,000 for bodily injury or death of one person, $50,000 for bodily injury or death of two or more people in one accident, and $10,000 for property damage. Instead of an insurance policy, an owner may use a surety bond or a cash deposit with the state treasurer totaling $60,000.
Is New Mexico a no-fault car insurance state?
New Mexico uses the at-fault (tort) system: the driver who causes a crash is responsible for the resulting injuries and damage, paid through liability insurance. The Alabama Department of Insurance's national table of state auto insurance laws lists New Mexico among the "Tort States."
Is uninsured motorist coverage required in New Mexico?
Every auto liability policy for a vehicle registered or principally garaged in New Mexico must include uninsured motorist coverage, which also includes underinsured motorist coverage, at no less than the minimum liability limits for bodily injury and property damage (and up to the policy's liability limits if the insured wants). The named insured has the right to reject UM coverage; if rejected, it need not be added to a renewal by the same insurer unless the named insured asks in writing. UM property damage coverage may exclude the first $250 of loss.
Can you show proof of car insurance on your phone in New Mexico?
Owners and drivers must carry evidence of financial responsibility in the vehicle at all times while it is driven on New Mexico highways; when coverage is an insurance policy, evidence in print or on a portable electronic device is acceptable, and showing it on a device is presumed not to be consent to access other contents of the device. Insurers report policies to the New Mexico Insurance Identification Database (IIDB), and proof of insurance is required to register a vehicle.
What is the penalty for driving without insurance in New Mexico?
Driving, or allowing the driving of, an uninsured vehicle is a misdemeanor punishable by a fine of up to $300, up to 90 days in jail, or both; a person is not convicted if they produce in court evidence of insurance valid when the citation was issued. A driver cited after an accident has the license plate removed and receives a 30-day temporary operation sticker; the plate is returned after proof of insurance and a $25 reinstatement fee (waived if proof of coverage in effect at the time is provided within 15 days). If the IIDB shows a vehicle as uninsured, the MVD sends a verification letter and, if not resolved within 30 days, suspends the registration; the owner must return the registration and plate within ten days of the suspension notice.
When do you need an SR-22 in New Mexico, and for how long?
New Mexico may require persons convicted of certain motor vehicle offenses, or who have failed to pay accident judgments or settlements, to file evidence of financial responsibility with the MVD, by filing evidence of an insurance policy, a surety bond, or a certificate of a cash deposit. The MVD may waive the filing requirement after one year of providing satisfactory evidence, unless an accident claim is pending or a judgment is unpaid.
How much notice must an insurer give before canceling car insurance in New Mexico?
Under the Superintendent of Insurance's rule, once a policy has been in effect 60 days, an insurer may cancel only if the policy was obtained by material misrepresentation or fraud; willful or negligent acts substantially increased the hazard; the driver's license of the named insured or a household or regular driver was revoked or suspended; or the named insured presented a fraudulent claim, with at least 15 days' written notice stating the reason. Cancellation for a substantial change in the risk requires at least 30 days' written notice with the reason. A nonrenewal notice must be mailed at least 30 days before the policy expires.
When is a car a total loss in New Mexico?
A "salvage vehicle" is one damaged (excluding hail damage, under department rules) to the point that the owner, leasing company, lender or insurer considers it uneconomical to repair and that is not then repaired by the owner, or one deemed uneconomical to repair for which an insurer made a total loss payment, whether or not it is later repaired. Salvage and nonrepairable vehicles may not be sold without a branded title, and nonrepairable vehicles may be sold only to licensed wreckers and may not be rebuilt for road use.
How do you transfer a car title in New Mexico?
When a registered vehicle is sold, its registration expires; the seller must notify the Motor Vehicle Division of the sale (date, buyer's name and address, vehicle description) and record the actual odometer mileage on the transfer document. Before driving the vehicle, the buyer must present the registration and the properly assigned title to the MVD and obtain a new title and registration; failing to apply within thirty days of the transfer is a penalty assessment misdemeanor. A title fee applies (and excise tax).
How long do you have to register your car after moving to New Mexico?
A person with a valid driver's license from their home state may drive in New Mexico but must obtain a New Mexico license upon becoming a resident. Vehicles registered in New Mexico must carry insurance from a company licensed in New Mexico to show as insured in the state's insurance database.

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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.