New Mexico Car Insurance

The state of New Mexico follows a Tort insurance system. Following an accident, law enforcement agencies must find the driver(s) who were at fault and have them pay for the damages caused and, eventually, cover the medical expenses of the injured passengers.

Minimum Liability Requirements in New Mexico

As of April 2026, New Mexico requires drivers to carry minimum liability coverage of 25/50/10 — at least $25,000 in bodily injury liability per injured person, up to $50,000 per accident, and $10,000 in property damage liability.

Source: CarInsurance.com, "US State Minimum Liability Car Insurance Requirements," updated April 15, 2026.

Average Car Insurance Premiums in New Mexico

Drivers in New Mexico pay an average of $2,133 a year for full-coverage car insurance — 27% below the national average of $2,922 a year.

Source: Experian, "Car Insurance Average Costs by State," published September 9, 2026.

Laws regarding uses of cellphones while driving

There are no cellphone restrictions while driving in New Mexico. Still, authorities recommend that all drivers carry hands-free devices when engaging in phone conversations. Penalties are also harsher if you cause an accident due to being distracted with using the phone.

Teenage driving regulations

New Mexico uses the Graduated Driver License system for aspiring drivers. Teens of at least 15 years old may apply for a provisional permit. By the time they get an unrestricted license, they must be accompanied by a licensed adult driver at all times, except for when driving to/from school, work or church.

Penalties for driving uninsured in New Mexico

Driving without insurance or the collateral deposit in New Mexico is a misdemeanor. You can be fined up to $300, lose your driving privileges for up to three months and have your vehicle registration suspended. Your license and registration will be reinstated after you pay a $120 fee and show proof of insurance.

AutoInsuranceQuery editorial team. Last reviewed: September 16, 2026.