Minimum Car Insurance 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.

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."

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.