Car Insurance in New Mexico
New Mexico requires drivers to carry at least 25/50/10 in liability coverage, plus uninsured/underinsured motorist coverage that can be waived in writing. As an at-fault state, the driver who causes a crash is responsible for the other party’s damages.
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New Mexico at a glance
Data as of 2023Average cost
$1,082/yr
≈ $90/mo
vs U.S. average
-16%
below the national avg of $1,282/yr
Required minimums
25/50/10
BI / BI per accident / PD ($K)
Source: NAIC (2023). Annual average expenditure per insured vehicle.
New Mexico requires drivers to carry at least 25/50/10 in liability coverage, plus uninsured/underinsured motorist coverage that can be waived in writing. As an at-fault state, the driver who causes a crash is responsible for the other party’s damages.
Because uninsured driver rates in New Mexico are above the national average, the uninsured motorist coverage is worth keeping. Comparing carriers is the easiest way to find affordable coverage.
New Mexico minimum car insurance requirements
New Mexico requires $25,000 of bodily injury liability per person, $50,000 per accident, and $10,000 in property damage liability, plus uninsured/underinsured motorist coverage that you can waive in writing. Lenders require collision and comprehensive on financed vehicles.
Uninsured/underinsured motorist coverage is required unless rejected in writing.
How much does car insurance cost in New Mexico?
The average driver in New Mexico pays $1,082 per year for auto insurance — that's 16% below the U.S. national average of $1,282/yr. Lower-than-average rates often reflect lower traffic density, fewer claims per insured vehicle, or less stringent coverage requirements.
New Mexico vs the national average
16% below the national average of $1,282/yr.
Source: NAIC (2023). Annual average expenditure per insured vehicle.
How New Mexico premiums have changed since 2019
Auto insurance costs in New Mexico have risen 16% over the past five years. The 2022–2023 jump mirrors a national trend: rising repair costs (vehicle complexity and parts inflation), more frequent severe accidents, and higher litigation costs pushed premiums up faster than overall inflation.
5-year trend: New Mexico vs national average
New Mexico is up 16% from $933 in 2019 to $1,082 in 2023.
Source: NAIC Auto Insurance Database Report (2022/2023), Table 4 — Average Expenditure.
Types of car insurance coverage
A New Mexico policy is built from a few core coverages. Liability is required; the rest are optional but often worth it.
| Coverage | What it covers | Required? |
|---|---|---|
| Liability | Injuries and property damage you cause to others | Required (state minimum) |
| Collision | Repairs to your own car after a crash | Optional* |
| Comprehensive | Theft, fire, weather, vandalism, animal strikes | Optional* |
| Uninsured motorist | Your costs if the at-fault driver has no insurance | Varies by state |
*Collision and comprehensive are usually required by your lender if you lease or finance your vehicle.
Driving without car insurance in New Mexico
Driving uninsured in New Mexico can be costly. Penalties typically include fines, suspension of your license and registration, and reinstatement fees. If you cause an accident while uninsured, you can also be held personally responsible for the other party's injuries and damage. You may also be required to file an SR-22 certificate to reinstate your license.
How to find cheaper car insurance in New Mexico
Rates for the same driver can vary widely between insurers in New Mexico, so comparing several quotes is the most effective way to save. A few other ways to lower your premium:
- Raise your deductible if you can cover it in a claim
- Ask about every discount you qualify for
- Keep a clean driving record and good credit (where the state allows it as a rating factor)
- Reconsider collision and comprehensive on an older vehicle
For more, see our guides on how to lower your premium and what affects your rate.
Coverage requirements last verified May 29, 2026. Always confirm current minimums with your state’s Department of Insurance.
New Mexico car insurance FAQs
Common questions about auto insurance in New Mexico
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