Frequently Asked Questions

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Frequently Asked Questions

Can I keep the car insurance I have from my previous state of residence?
You can keep the car insurance from your previous state of residence if it meets the minimum amount of liability coverage required by New Mexico:
  • Bodily Injury Liability Insurance

â—¦ One person: $25,000

â—¦ Two or more people: $50,000

  • Property Damage Liability Insurance: $10,000

For more information: New Mexico Auto Insurance Get a Quote and Save

Do I need to cancel my insurance if I am moving to another state?
Whether you should cancel your car insurance when moving to another state or not, depends on the auto insurance provider you have chosen. If your car insurance company has branches outside of the borders of New Mexico, you should notify the company of your move. Providing your insurance carrier with your new address will allow you to continue using their car insurance policy adjusted for your new state of residence. However, if your auto insurance company does not cover this new state, you will be expected to find a new auto insurance company that does.

For more information: New Mexico Auto Insurance Get a Quote and Save

How can I avoid a license suspension if I choose not to insure my vehicle?
Owners of motor vehicles in New Mexico are required by a state law to purchase a minimum amount of liability coverage. Vehicles that do not have auto insurance, will be denied registration by the New Mexico MVD. Vehicle owners might face strict penalties such as fines, jail time, and vehicle registration suspension. You will be mailed a Verification of Mandatory Automobile Insurance letter if you have failed to provide proof of car insurance to the New Mexico Insurance Identification Database (IIDB). One month after you receive this letter, you will receive a Notice of Suspension of Registration. You must provide auto insurance within these 30 days in order to avoid a registration and license suspension.

For more information: New Mexico Auto Insurance Get a Quote and Save

If I have been in an accident, what property damage do I have to report?
If you have been involved in an accident while operating your motor vehicle, you are required by New Mexico state law to report all damages to person and property to the New Mexico DMV office and your car insurance company. The property damage liability insurance covers damages to vehicles and property (house, building, fence, lamppost, etc).

For more information: New Mexico Auto Insurance Get a Quote and Save

If I live outside of the state for half the year, am I still required to have car insurance?
If you are a New Mexico resident who works or studies out-of-state, or is on active duty in the military, you are still required to have car insurance. You can keep the insurance you have bought in New Mexico, as long as your vehicle remains in the state. The following documents must be submitted to the New Mexico Insurance Identification Database (IIDB):

For more information: New Mexico Auto Insurance Get a Quote and Save

What is the minimum liability insurance coverage?
Drivers in New Mexico are required to obtain a minimum amount of liability car insurance in order to legally operate a motor vehicle. Without car insurance, drivers will not be able to register and title their vehicles. The minimum amounts of liability insurance required by New Mexico are:
  • Bodily Injury Liability Insurance

â—¦ One person: $25,000

â—¦ Two or more people: $50,000

  • Property Damage Liability Insurance: $10,000

For more information: New Mexico Auto Insurance Get a Quote and Save

What proof of insurance can I provide when registering my car?
New Mexico requires proof of insurance when registering vehicles at the New Mexico DMV office. That proof of insurance can be obtained from your car insurance company and you should always carry it with you when operating your vehicle. The proof of insurance can be:
  • Current car insurance card
  • Copy of your current car insurance policy
  • Letter from your car insurance company verifying your car insurance coverage

Without any of these proofs of car insurance, you will not be able to register your vehicle at the DMV. You will also recieve a vehicle registration suspension if found driving without one of the aforementioned forms of proof of insurance.

For more information: New Mexico Auto Insurance Get a Quote and Save

What type of car insurance am I required to have?
New Mexico has a state requirement that all motor vehicles have liability insurance. Drivers are required to obtain minimum liability amounts if they want to own and operate motor vehicles. The required car insurance consists of:
  • Bodily Injury Liability Insurance
  • Property Damage Liability Insurance

There is another type of insurance known as uninsured and underinsured coverage which covers the costs of an accident when a driver does not have car insurance.

For more information: New Mexico Auto Insurance Get a Quote and Save

What will happen if I fail to get or keep car insurance?
New Mexico residents who operate their motor vehicles without the minimum amount of liability car insurance required, will have their vehicle s registration suspended. You will receive a Notice of Suspension of Registration letter from the New Mexico MVD. The New Mexico Mandatory Financial Responsibility Act requires residents to return their vehicle registration and license plates to the New Mexico DMV within 10 days of receiving this notice. If you fail to do so, you will face severe criminal penalties.

For more information: New Mexico Auto Insurance Get a Quote and Save

Which types of vehicles need to be insured?
Every type of vehicle operated in the state of New Mexico is required to apply for vehicle insurance. The minimum amount of liability insurance required in New Mexico are:
  • Bodily Injury Liability Insurance to one person: $25,000
  • Bodily Injury Liability Insurance to two or more people: $50,000
  • Property Damage Liability Insurance: $10,000

For more information: New Mexico Auto Insurance Get a Quote and Save