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New Mexico Car Insurance


Car insurance rates divide New Mexico as neatly as desert and mountains do. The high country pays the most, but even in the more costly cities and towns, the difference as you compare insurance companies can be hundreds or even thousands of dollars. Find your ZIP on the New Mexico map below. Choose from six age groups and three coverage levels to get the average car insurance rate for your neighborhood.

New Mexico Car Insurance Requirements
Average Car Insurance Rates in New Mexico
Car Insurance Companies in New Mexico

New Mexico car insurance requirements

New Mexico state law requires the following minimum car insurance coverage:
Minimum bodily injury liability$25,000/$50,000
Minimum property damage liability$10,000

What you need to know about car insurance in New Mexico

Penny Gusner
Consumer Analyst

New Mexico Car Insurance Laws

New Mexico requires motorists to liability insurance 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.

Largest car insurance companies for New Mexico by market share

RankCompany / GroupDirect Premiums Written ($)Market Share (%)
1State Farm Group223,33219.93
2Farmers Insurance Group161,60414.42
3Berkshire Hathaway Insurance126,09211.25
4Progressive Insurance Group110,6799.88
5Allstate Insurance Group96,3128.59
6USAA Group92,7388.28
7Liberty Mutual Insurance Companies56,3355.03
8Hartford Insurance Group41,5093.70
9Sentry Insurance Group40,8663.65
10Loya Insurance Group25,5172.28
Source: A.M. Best market share rankings are based on direct premiums written in 2013.