You may know that insurance is a necessity for operating a motor vehicle with a valid driver’s license, but many drivers do not know that states specify their own requirements for mandatory minimum insurance coverage in the event of an automobile accident. If you find yourself in an accident without the legally mandated minimum insurance, even if you were not at fault in the accident you may still face penalties. New Mexico is no different, and has its own mandates for minimum insurance requirements.
According to the New Mexico Motor Vehicle Department website, your insurance must cover a minimum liability of $10,000 for property damage in any single accident, $25,000 for death or personal injury to one person and $50,000 for death or personal injury to two or more persons.
If you do not provide proof of insurance through a state-licensed insurance company, your vehicle registration may be suspended. You or your insurance agent will need to provide mandatory proof of insurance filed in the state database to be reinstated, and you must pay a $30.00 reinstatement fee. Your registration will generally be updated and reinstated within one business day. Driving an unregistered vehicle may pose a risk if you are in an accident or pulled over for a traffic violation.
It is important to make sure you also have uninsured/underinsured motorist coverage in amounts equal to your liability coverage. This protects and insures you and your family if you are hit and injured by an uninsured driver or one with insufficient coverage.
This post does not constitute legal advice and should be used for reference purposes only, and not as a substitute for qualified legal counsel.