You are required by law to maintain automobile insurance. You choose a carrier, pick a plan, pay your premiums, and assume you’re covered as you motor around in your vehicle.
But are you? Is it enough to merely be ‘street legal’ in New Mexico? It’s important to understand how your state’s insurance laws impact you, especially when you are involved in a car accident.
Which type of auto insurance is required by law in New Mexico, and should you consider more?
Minimum Car Insurance Requirements in New Mexico
New Mexico auto insurance requirements call for minimum liability coverage of:
- $25,000 per person for bodily injury liability
- $50,000 of bodily injury coverage per accident, and
- $10,000 of property damage per accident.
This is known as the 25/50/10 insurance rule as set by the Mandatory Financial Responsibility Act (New Mexico Statutes 66-5-201). The rule applies to almost all New Mexico vehicles except for government vehicles, farm equipment, self-insured vehicles, or any transport the owner vows to not operate on New Mexico roads.
In rare situations, a motorist can forego standard automobile insurance, provided they can put up at least a $60,000 cash deposit or surety bond in case of a crash. The bottom line is that all drivers on New Mexico roads must demonstrate proof of financial responsibility.
Consequences of Driving Without Insurance in New Mexico
They might call it “The Land of Mañana,” but if you get caught driving without proof of financial responsibility, New Mexico doesn’t play. Uninsured motorists can expect at least a $300 fine and:
- Up to 90 days incarceration
- Suspension of your vehicle’s registration, and
- Confiscation of your vehicle’s license plate
The likelihood of more serious penalties increases if the uninsured driver is involved in a crash or any subsequent offenses, such as driving without a license or while impaired. New Mexico penalties for no insurance can rise to $1000 dollars and 120 days of jail/prison time.
The driver could even be required, through an SR-22 form, to register as a high-risk driver, guaranteeing the added punishment of higher insurance premiums.
You don’t want to be the person caught driving without insurance, especially in an accident. Then again, getting crashed into by an uninsured or underinsured driver can also set you back.
Understanding Uninsured and Underinsured Motorist Coverage
New Mexico requires all insurance carriers to offer uninsured and underinsured motorist coverage to policyholders on a per-vehicle basis. Drivers are strongly encouraged to add this level of coverage. In fact, most policies automatically apply it unless the policyholder signs a waiver.
Here are two reasons why you should never waive uninsured/underinsured coverage:
- Nearly 1 in 4 New Mexico motorists are uninsured, according to the Insurance Information Institute. This means that if you get into an auto crash, there is a 25 percent chance the other driver will have no coverage whatsoever.
- Not having UM/UIM coverage could expose you to hefty out-of-pocket costs and/or legal fights over medical bills, property damage, and lost income.
Optional Coverage Types for Enhanced Driver Protection
Motorists far more concerned with coverage than with paying higher premiums can choose from a variety of additional perks to add to their auto policies. Some examples:
- MedPay (medical payments) covers hospitalization and injury expenses for the driver and all their passengers, regardless of fault.
- Rental car reimbursement pays the policyholder’s transportation costs while his or her car is getting repaired or replaced.
- Gap coverage pays the difference between the value of your crashed car and the remaining balance owed on a loan.
- Towing and Labor pays for roadside assistance and towing.
New Mexico Car Crash Attorneys Can Help
Knowing New Mexico’s minimum insurance requirements is only the first step. Many drivers discover that basic coverage may not fully protect them after a serious accident. When injuries and damages exceed policy limits, having the right coverage and the right legal guidance can make a big difference.
You don’t have to go it alone with insurance companies after an automobile accident.
At Barrera Law Group LLC, we have experienced attorneys ready to help ensure you get the compensation you deserve.