New Mexico requires motorists to carry liability limits of just $25,000 per person and $50,000 per accident for bodily injury and $10,000 for property damage. If you own a home or have substantial savings, those amounts are too low. Even a minor fender-bender can rack up $10,000 in damage to a newer car.
Uninsured/underinsured motorist bodily injury coverage is offered together in New Mexico, along with uninsured motorist property damage (UMPD). All of these coverages must be offered to you, though you can reject them.
But with the high number of uninsured drivers, an estimated 26 percent, according to the Insurance Research Council, keeping uninsured motorist coverage on your policy is a smart idea unless you have health insurance that you know will cover you for injuries sustained in an auto accident.
Collision coverage is usually a better buy if you want to have your car repairs covered -- because it covers the damage even when you're at fault.
Uninsured penalties: As far as penalties go for driving without insurance, New Mexico's aren't very severe, which may account for why there are so many drivers doing it. If the Motor Vehicle Division (MVD) finds that your registered car isn't in compliance with the state's financial responsibility law, it will suspend your vehicle's registration and registration of your vehicle(s) will be denied until insurance is obtained. Driving without insurance is a misdemeanor, and you can receive a fine of up to $300.
Storing your vehicle: If you put a vehicle in storage or take it off the road to be restored, you must submit an Affidavit of Non-Use with the New Mexico Insurance Identification Database (IIDB). Your registration will then be noted as "unknown" for insurance purposes and you won't incur any penalties for the vehicle being uninsured – as long as you don't drive on the road.