Global Courant
New Mexico auto insurance laws are designed to encourage all drivers to keep their vehicles properly covered to minimize the amount each driver must pay in the event of an accident. This is to ensure the protection of all road users and also serves to keep insurance premiums low by promoting safe driving.
New Mexico auto insurance requirements include a condition that you must provide proof of insurance or other financial responsibility at the time of registering your car. Driving without proof of insurance or financial responsibility is considered a serious crime and can lead to severe penalties.
Because New Mexico is a tort law, a driver must be found in any accident. For this reason, New Mexico auto insurance laws require a minimum liability coverage to ensure all drivers are covered. The minimum coverage required is $25,000 for injury or death to one person, $50,000 for injury or death to more than one person, and $10,000 for property damage.
Because the minimum liability coverage only provides for injury or damage to other drivers, you may instead choose to provide a $60,000 cash deposit or bond to the state treasury to establish financial responsibility. This covers any injury or damage to you and other drivers in the event of an accident. If your cash deposit or bond runs out, you’re responsible for replenishing it, and you must also pay cash for all expenses over $60,000.
Another important requirement for auto insurance in New Mexico is the need for drivers to carry proof of insurance or financial responsibility. This proof must be presented at the time the driver registers their vehicle and at any time requested by a police officer. Proof can be in the form of a standard insurance card or, if you have chosen to self-insure, a state-issued Certificate of Financial Responsibility.
Failure to provide proof of insurance or financial responsibility is considered a misdemeanor and a first offense will result in a $300 fine and the charge being added to your driver’s license. It can also lead to the withdrawal of your registration or driving licence. Driving without proper insurance is a more serious offense and could result in a felony and possible jail time.
Under New Mexico auto insurance laws, the state also monitors insurance using the Insurance Identification Database. This will automatically alert the state when your insurance expires. This service was set up to crack down on uninsured drivers, as this can pose a safety problem for anyone on the road.
New Mexico may be the land of enchantment, but for drivers who don’t abide by auto insurance laws, it’s anything but. Keep the roads safe for yourself, your passengers and other drivers by following the law and making sure your car is properly covered. It can help make the sunny southwest a pleasant place for everyone to drive.
Auto insurance laws and driver in New Mexico
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