Car Insurance In New Mexico 2026: Laws, Costs, Requirements & Companies

After analyzing the New Mexico insurance market, I’ve seen firsthand how car insurance requirements can vary and impact drivers differently. This guide is designed to provide everything you need to know about car insurance in New Mexico, from the type of coverage that is required to the type of coverage you might consider based on the biggest risk factors in the state.

Does New Mexico Require Car Insurance?

Yes, New Mexico requires that all drivers carry a minimum amount of liability coverage, and choosing to drive without insurance or without proof of insurance can be a misdemeanor leading to severe legal consequences.

New Mexico maintains “25/50/10” mandatory liability limits, which means:

• Bodily Injury Liability ($25,000 per person) for medical bills or funeral expenses for one person injured in an accident where you were at fault.
• Bodily Injury Liability ($50,000 per accident), which is the maximum amount your insurer will pay for all injuries to multiple people in a single accident where you were at fault.
• Property Damage Liability ($10,000 per accident) for repairs or replacement of another person’s property, like their car or any property that was damaged.

How Much Insurance Should You Get In New Mexico?

New Mexico has fairly low state minimums, especially for things like property damage. In the case of a serious accident, $10,000 in property damage will typically not be enough to cover modern vehicles.

That is why drivers in the land of enchantment should consider optional coverages to increase their protection.

Uninsured/Underinsured Motorist (UM/UIM)

New Mexico consistently ranks among the states with the highest numbers of uninsured drivers, with an estimated 25% of all drivers in New Mexico lacking any insurance at all.

So, if you get in an accident caused by another driver and they don’t have insurance, adding this level of protection can cover your medical bills, property damage, and lost wages. Even if the other driver does have insurance, if they maintain state minimums, $10,000 may be insufficient to repair your car.

Full Coverage

Full coverage includes comprehensive and collision, and this can protect against things like non-collision accidents, theft, severe weather, and wildfires.

Areas like Albuquerque recorded 710 car thefts per 100,000 residents in the first half of 2025, highlighting the need to protect yourself against vehicle theft.

The state is also prone to flash flooding, wildfires, and hail storms, none of which are covered by anything other than comprehensive coverage.

Loan/Lease Gap Coverage

Drivers in New Mexico who currently have a loan or lease on their vehicle should strongly consider this type of gap coverage. In the event of an accident or theft, this gap coverage can help pay the remaining balance on your loan.

Roadside Assistance

With vast areas of the state sparsely populated in between major cities, you must have insurance to protect against the high cost of long-distance towing, flat tire changes, or other roadside services.

How Much Is Car Insurance In New Mexico?

The minimum coverage in New Mexico averages between $457 and $991 annually ($38 and $83 per month). Full coverage, including comprehension and collision coverage, averages $2,049 to $2,198 annually ($171 and $183 per month).

There are, however, several other factors to your driving habits, driving history, and coverage type that can impact your costs:

• Low-income car insurance: While New Mexico has no government-sponsored program, those who need low-cost insurance can get the basic state minimum, which averages around $200 per year from regional providers.
• Non-owner car insurance: If you don’t own a car but you still want insurance for when you borrow or rent one, your premiums are based on age, with teenagers paying over $800 per year, but older adults in their 40s paying around $300 per year.
• Temporary car insurance: There are very few carriers in New Mexico offering temporary car insurance, but short-term policies for 3 months averages $300.
• Senior car insurance: Drivers in their 60s pay an average of $1,524 to $2,291 per year for full coverage or $721 per year for minimum state liability coverage.
• Teen car insurance: Teens are in the highest risk category, meaning their premiums can go up. Full coverage for 18-year-olds on their own policies averages $3,612 to $4,148, while minimum coverage can still be between $641 to $1,233.
• SR-22 car insurance: For high-risk drivers requiring an SR-22 (such as after a DUI), they can expect annual premiums for full coverage between $2,594 and $2,989.
• College Students: For full coverage, college students can expect annual fees of around $2,149.
• Bad Credit: Credit score plays a significant role in the premiums that drivers pay, with a roughly 92% increase in premiums for someone with a poor credit score versus someone with a good credit score.
• With a speeding ticket: A single speeding violation typically increases premiums by 20%.

These figures are general estimates and can vary depending on the insurer and your personal driving profile.

Which Car Insurance Companies Operate In New Mexico?

These insurers offer a range of coverage options and discounts tailored to New Mexico:

• Allstate
• American Family Insurance
• Amica Mutual Insurance Company
• Farmers Insurance
• GEICO
• Liberty Mutual
• Nationwide
• Progressive
• State Farm
• Travelers
• USAA
• Central Insurance
• Dairyland
• Farm Bureau Financial Services
• Fred Loya Insurance
• GAINSCO
• Kemper
• Mercury Insurance
• The General
• AAA
• Direct Auto Insurance
• National General Insurance
• Safeco

Note: You can use the New Mexico Office of Superintendent of Insurance Company Search tool to find all licensed providers in the state.

While these insurers offer many coverage types, Insuranceopedia can help you compare different policies and quotes to find the best fit for your needs.

How To Get Lower Insurance Premiums In New Mexico

There are many ways the drivers in New Mexico can help keep their premiums down, especially given the nearly 30% increase that has happened over the last 2 years.

Complete A State-Approved Accident Prevention Course

Drivers who are 55 or older and voluntarily complete an accident prevention course from an approved facility can get a mandatory premium discount, usually around 10%, for 3 years.

Adjust PIP Allowable Expenses

Drivers are allowed to choose different coverage limits for their personal injury protection, so while you might have to carry it, opting for a lower limit can reduce your premiums.

Use Your Health Insurance

Similarly, you can opt out of personal injury protection entirely if you have an employer-provided health insurance policy that would cover any injuries you sustain relating to a car accident. Being able to use this policy can help cut your premiums.

Request An Uninsured Motorist (UM) Rejection Form

UM/UIM has to be offered by all insurance providers, given the high risk of uninsured motorists in the state, but you do not have to legally carry it. If you don’t want to carry it and thus you want to reduce your premiums by getting rid of it, you have to submit a form in writing rejecting this coverage.

Bundle Your Policies

One great way to keep costs low is to bundle multiple Insurance products or policies. If, for example, you have homeowners insurance or renters insurance, you can typically bundle these with the same insurance provider and enjoy multipolicy discounts between 15% and 25% across all of your insurance products.

Low Mileage

If you have a vehicle that you don’t use regularly, you might qualify for a low-mileage discount. Each insurance provider is different, but generally, qualifications are vehicles used for fewer than 7,000 to 12,000 miles per year.

Monitor Your Driving

Many national and regional providers offer significant discounts between 10% and 30% off your premiums if you allow the company to track or monitor your driving behavior. This usually relies on an app through your phone or a device in your car that tracks things like how hard you brake, when you speed, or what time of day you drive. Good driving habits can qualify you for good discounts.

Proof Of Insurance In New Mexico

All drivers in New Mexico are legally required to have car insurance, and the state relies on an Insurance Identification Database, which matches registered vehicles to their active insurance policies.

All drivers are required to carry proof of their insurance at all times while driving, when registering a vehicle, or after an accident. This can include an auto insurance card, a copy of your full insurance policy, or a verification letter from your insurance company on company letterhead. You can also show a digital version on your mobile phone.

If you get caught without insurance or you are unable to provide proof of insurance, it can cost hundreds of dollars in fines, result in a vehicle suspension, license plate confiscation, impoundment of your vehicle, and jail time.

The reinstatement process requires that you purchase a new policy, update your information in the state database, wait for verification, pay your fees, and then provide your VIN as evidence to link your insurance policy to your vehicle.

New Mexico State Driving Laws

New Mexico has many driving laws that pertain to mandatory insurance, seat belts, teen drivers, and what to do after an accident. Knowing each of these can make it easier for drivers to make informed decisions.

Fault State

So it’s a fault state, which means whichever driver is found to be legally at fault for causing an accident is also legally responsible for paying any resulting damages. A driver can recover damages even if they are only partially at fault, as well, given the comparative negligence system, but compensation gets reduced by whatever percentage of blame falls on that same driver.

Drivers Without Insurance

The Mandatory Financial Responsibility Act states that driving without insurance brings fines, possible imprisonment, suspension of registration/plates, and financial responsibility for damages.

Uninsured Motorist Coverage

Insurance companies in New Mexico have to offer uninsured motorist coverage, but if you don’t want it, you have to submit your request in writing.

Seat Belt Laws

All drivers and passengers have to wear seatbelts or specific child booster seats and car seats. This is a primary enforcement law, which means that you can be pulled over specifically for not wearing a seatbelt.

Distracted Driving Laws

It’s illegal to use any type of handheld mobile device while driving, even if you are stopped at a stop sign or a traffic light, with the exception of calling for emergency help.

Teen Driving Laws

New Mexico uses a Graduated Driver Licensing (GDL) program so teens can get their permit at age 15, with restrictions, and then for 12 months receive a provisional license. After that, and reaching minimum age/driving record requirements (16.5 or 18 + 6 months clean record), teens get a full license.

Statute Of Limitations For Claims

New Mexico’s statute of limitations for personal injury or wrongful death is 3 years after an accident or death, but 4 years for property damage. If you are submitting a claim against a government entity, it is 90 days.

Cancellation/Non-Renewal Notification Laws

Insurance providers must give you 10 days’ written notice if they are canceling for non-payment. If you take out a new policy within the first 60 days, an insurance provider can cancel for any reason as long as they give you 10 days’ notice. Once you have had a policy for at least 60 days, your insurance company needs reasonable cause, and they have to give you 30 days’ notice.

Self-Insurance

If you meet New Mexico criteria and have a cash deposit or surety bond for all of your respective vehicles, you can self-insure with approval from the Superintendent of Insurance.

SR-22s

New Mexico does not have SR-22 laws, but if a driver from another state is under an SR-22 provision, they will still need to maintain that certificate for their original time frame with the original issuing state.

Car Inspection Requirements

Only vehicles in Bernalillo County (which includes Albuquerque) have to undergo an emissions test every two years. Vehicles brought from out of state have to undergo a VIN inspection.

Defensive Driving

Drivers who complete a defensive driving course might qualify for insurance discounts and, on a case-by-case basis, might qualify for a guilty deferred sentence from the court, but it will not remove points from your record.

When Is A Car Declared A Total Loss?

New Mexico uses the Total Loss Formula (TLF), meaning once the cost of repairs and salvage is equal to or greater than the actual cash value of your car, it’s declared a total loss.

When To Report An Accident

Drivers have to notify the police if an accident involves injury, death, or property damage of $500 or more. Written reports must be filed with the Department of Transportation (MVD) within five days of the accident, usually done by the police.

Civil Suit Thresholds

There are no caps in New Mexico for civil suit thresholds, but there are caps for claims against government entities or medical malpractice.

New Mexico Car Insurance Contact Information

If you are dealing with any issues pertaining to your insurance, license reinstatement, or other car insurance-related issues, there are several organizations you might need to contact.

1. New Mexico Office of Superintendent of Insurance (OSI)

If you have an unresolved dispute with your insurance provider over an increase to your premiums, a cancellation of your policy, or a claim, you can contact OSI. You can also contact this department to report any suspected insurance fraud or verify that a particular agent or company is legally registered within the state.

Contact Information:

• Consumer Assistance Hotline: (855) 427-5674
• Main Office (Santa Fe): (505) 827-4601
• Email (Consumer Questions): osi.consumer@state.nm.us
• Physical Address: 1120 Paseo de Peralta, Suite 428, Santa Fe, NM 87501
• Website: osi.state.nm.us

2. New Mexico Motor Vehicle Division (MVD)

The MVD, part of the Taxation and Revenue Department, is who you contact over issues of reinstating your vehicle registration if, for example, it got suspended because of an insurance lapse, verifying your insurance within the state’s DriveInsured database, or registering a new vehicle.

Contact Information:

• General Information Hotline: (888) 683-4636 (888-MVD-INFO)
• Insurance Identification Database (IIDB) Call Center: (866) 891-0665
• MVD Financial Responsibility Section: (505) 383-2315 (Albuquerque area)
• Website: newmexico.gov

3. New Mexico Department of Transportation (NMDOT)

If you have any questions about accident data or Highway safety, this is who you contact.

Contact Information:

• Main Office: (505) 795-1401
• Website: dot.nm.gov

Common New Mexico Car-Related Crime And Fatalities

New Mexico has implemented things like automated license plate readers to help tackle previously high levels of vehicle theft, but there are still high crime rates and fatalities for which drivers need to be prepared.

Traffic Fatality Data

New Mexico recorded nearly 400 traffic fatalities in 2025 and the same in 2024. Despite changes to law enforcement and penalties for things like distracted driving and driving under the influence, New Mexico still has some of the highest rates of traffic fatalities per capita.

New Mexico also leads in the highest per capita rate of pedestrian fatalities across the nation. There is an average of 100 pedestrian-related deaths from car accidents every year.

Common Accident Causes

The leading factor behind these accidents and accident fatalities has to do with distracted driving, which has been involved in over 20% of all accidents in New Mexico. In fact, New Mexico has some of the highest rates of distracted driving fatalities across the United States.

Another 38% of all fatal car accidents involve alcohol, and a similar 38% of all fatalities over the last several years involved speeding, which represents the second-highest cause of all fatal car accidents.

Though not as high-risk, there are still many accidents that involve wildlife collisions, especially in the fall, and car accidents from November to March because of ice and snow, especially at night.

Vehicle Theft Trends

Albuquerque has some of the highest rates of vehicle theft across the state, though rates from 2025 dropped by 42% as compared to 2024. A big reason behind this reduction is the use of automated license plate readers.

Still, New Mexico is ranked 4th across the nation for its high rates of vehicle thefts, and is something for which drivers should be prepared and insured.