New Mexico Auto Insurance: Minimum Coverage & Rates
New Mexico requires 25/50/10 liability coverage and is an at-fault state.
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New Mexico at a Glance
25/50/10
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Optional
PIP and uninsured motorist coverage are not required by law
Source: state DMV, insurance department and statute records, verified July 2026
State Requirements
New Mexico operates as a tort state, meaning at-fault drivers are financially liable for damages they cause. The state requires all drivers to carry proof of insurance and enforces compliance through random verification and traffic stops. New Mexico also mandates uninsured/underinsured motorist coverage at the same limits as your liability policy — a requirement that sets it apart from most states.
Bodily Injury Liability
Property Damage Liability
Uninsured/Underinsured Motorist (UM/UIM)
Cost Overview
$39–$71/mo
Typical monthly rate in New Mexico, minimum-coverage policies
Rate data: NerdWallet, ValuePenguin and Insurify, 2026
Find the Lowest Rate That Still Protects You
Find Your Lowest RateFrequently Asked Questions
Is New Mexico a no-fault or tort state?
New Mexico is a tort state, meaning the at-fault driver is financially responsible for damages. You can sue the at-fault driver for costs exceeding your coverage, and you can be sued if you cause an accident. This makes carrying liability limits above the 25/50/10 minimum critical if you have assets to protect.
Coverage Types
Liability Insurance
The only legally required coverage in New Mexico. 25/50/10 minimums protect other people, not you or your vehicle. You remain personally liable for any damages exceeding your policy limits.
Uninsured/Underinsured Motorist
Pays your medical bills and vehicle damage when hit by an uninsured driver. New Mexico mandates this at the same limits as your liability, but you can reject it in writing.
Collision Coverage
Pays to repair your vehicle after an at-fault accident, minus your deductible. Only cost-effective if your car is worth more than 10 times the annual collision premium.
Comprehensive Coverage
Covers theft, vandalism, hail, glass damage, and animal collisions. New Mexico's high rate of catalytic converter theft and frequent windshield damage from gravel roads make this relevant even for minimum-coverage buyers.
Full Coverage
Bundles liability, collision, and comprehensive. Required by lenders but rarely economical for vehicles worth under $5,000 — you'll pay more in premiums than you'd recover in a total-loss claim.
SR-22 Insurance
A state-required filing proving you carry insurance after a DUI, multiple violations, or driving uninsured. The SR-22 itself costs $15–$35 to file, but the underlying high-risk policy increases premiums 80–150%.