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New Mexico's minimum liability limits are 25/50/10, and the 10 refers to $10,000 of property damage. Uninsured/underinsured motorist coverage is not mandatory here, but insurers must offer it, and recent court and regulatory activity has made that offer more specific.
After the New Mexico Supreme Court's decision in Kileen v. Tamberin in June 2025, the Office of the Superintendent of Insurance issued Bulletin 2025-013, requiring insurers to offer UM/UIM on a per-vehicle cost basis and to obtain a knowing rejection before excluding it. On the enforcement side, the MVD uses the New Mexico Insurance Identification Database to check coverage electronically, and an uninsured vehicle can have its registration suspended and its plates confiscated. Owners must surrender the registration and plate within ten days of a suspension notice, so read any MVD letter promptly.
| Minimum liability | 25/50/10 (BI per person / BI per accident / PD, in $1,000s) |
|---|---|
| Other required coverage | None beyond liability |
| Fault system | At-fault (tort) |
| Credit-based insurance scores | Allowed |
New Mexico minimum liability limits
To register and drive a car in New Mexico you need at least this much liability coverage:
- $25,000 for injuries to one person in an accident you cause.
- $50,000 in total for injuries to everyone in that accident.
- $10,000 for damage to other people's property, such as their car.
Tip: The minimum is a legal floor, not a recommendation. If a serious crash costs more than your limits, you could be personally responsible for the rest. See how much liability coverage you may need.
Other required and offered coverage
Insurers must offer uninsured/underinsured motorist (UM/UIM) coverage, and a 2025 Superintendent of Insurance bulletin requires the offer to be made per vehicle and the rejection to be knowing and in writing.
Learn more about uninsured motorist coverage and personal injury protection.
Is New Mexico a no-fault state?
New Mexico is an at-fault (tort) state. The driver who causes a crash is responsible for the other people's injuries and property damage, which is normally paid by that driver's liability insurance. Injured people can claim against the at-fault driver's insurer or, in some cases, sue.
New Mexico uses pure comparative fault: your recovery is reduced by your percentage of fault but never completely barred (Scott v. Rizzo, 1981).
Read more: at-fault vs. no-fault states explained.
Can insurers use your credit in New Mexico?
Status: Allowed. The Office of the Superintendent of Insurance lists insurance credit score among the factors insurers use and says companies are permitted to use your credit score in determining the cost of your insurance.
See how credit affects car insurance for the bigger picture.
Penalties for driving uninsured in New Mexico
Vehicles without minimum liability insurance can have registration suspended, denied or delayed, and plates can be confiscated with a citation for no proof of insurance. Owners must return the registration and plate to the MVD within ten days of a Notice of Suspension of Registration, and criminal penalties are possible.
The MVD works with a New Mexico Insurance Identification Database (IIDB) run by PASCO. Insurers report coverage to it electronically and update it when you buy a new policy.
If you are ordered to file proof of insurance, see what SR-22 insurance is.
Tips for New Mexico drivers
- Check the UM/UIM line for each vehicle. Under OSI Bulletin 2025-013, insurers must offer it on a per-vehicle cost basis and the rejection must be knowing.
- Know that $10,000 of property damage can be quickly used up. The 25/50/10 minimum is the legal floor, not a measure of what a crash can cost.
- Respond to any MVD suspension notice quickly. The owner of an uninsured vehicle must return the registration and plate to the MVD within ten days of receiving the notice.
- File a non-use affidavit if a car will not be driven. The MVD says there is no penalty for a vehicle you do not drive on New Mexico roads, but the affidavit must be completed each year.
- Verify your policy appears in the state database after you buy it. Insurers notify the Insurance Identification Database electronically, so confirm it is reported.
When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.
Official resources
- Insurance regulator: New Mexico Office of the Superintendent of Insurance
- Motor vehicle agency: New Mexico Motor Vehicle Division
Your state insurance department can answer questions about your rights and handle complaints about insurers.
Frequently asked questions
What is New Mexico's minimum car insurance requirement?
New Mexico requires $25,000 per person and $50,000 per accident for bodily injury or death, plus $10,000 for property damage, often written 25/50/10. The requirement comes from the state's Mandatory Financial Responsibility Act. Those limits cover damage you cause to others, not your own car or injuries.
Is uninsured motorist coverage required in New Mexico?
It is not mandatory, but insurers must offer it. The Office of the Superintendent of Insurance says insurers must meaningfully offer UM/UIM coverage, and under Bulletin 2025-013 they must offer it per vehicle. Coverage can be excluded only after a knowing rejection, so review your forms to see whether you accepted or declined it.
What happens if my car is uninsured in New Mexico?
The MVD can suspend, deny or delay your vehicle registration and confiscate your plates, and you can receive a citation for no proof of insurance. These offenses do not carry points but require a court appearance. You must return your registration and plate within ten days of receiving a Notice of Suspension.
How does New Mexico track insurance coverage?
The MVD works with the New Mexico Insurance Identification Database, operated by PASCO. Insurers electronically report coverage and notify the database when you obtain insurance. If you buy a new policy after a suspension notice, your insurer's electronic report is one way coverage is confirmed, though you should keep your proof of insurance handy.
Sources
- New Mexico MVD – Insurance
- New Mexico MVD – Chapter 11: Mandatory insurance
- New Mexico OSI – Bulletin 2025-013 (UM/UIM per-vehicle offer)
- New Mexico OSI – Auto insurance
- Matthiesen, Wickert & Lehrer – Contributory negligence/comparative fault laws in all 50 states
General information only. State rules change. Confirm current requirements with the New Mexico Office of the Superintendent of Insurance or your insurer before you buy. This page is not insurance or legal advice.