New Mexico car insurance laws and requirements: What is changing in 2025

Q: Is it mandatory to have car insurance in New Mexico?

Yes , New Mexico requires that you carry at least the minimum mandatory coverage. Necessary coverage includes 25/50/10.

Q: Will my bare minimum car insurance cover me in another state?

Yes , your car insurance covers claims in another state, even if the minimums are higher in the other state.

New Mexico car insurance laws

New Mexico requires that drivers carry at least 25/50/10.

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, coverage limits are very low and will not cover expenses from a serious accident. To be better protected, New Mexico drivers should consider increasing liability limits and adding coverage, such as collision and comprehensive.

New Mexico car insurance requirements

New Mexico requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

New Mexico liability minimums are 25/50/10.

The average cost of a minimum coverage policy is $421. However, Central Insurance has the lowest minimum car insurance rates, averaging $192.

The table below shows the top insurers' average rates for minimum coverage in New Mexico.

Company	Average annual premium	Average monthly premium
Central Insurance	$192	$16
State Farm	$321	$27
Progressive	$357	$30
Geico	$380	$32
Iowa Farm Bureau	$396	$33
Kemper	$467	$39
Nationwide	$545	$45
Farmers	$575	$48
Allstate	$788	$66
USAA	$198	$16

Read our methodology

New Mexico car insurance cost for minimum coverage limits

On average, state minimum car insurance costs $421. Car insurance rates for minimum coverage vary by company and driver. The table below shows average rates for drivers with minimum coverage in New Mexico.

The cheapest company for minimum coverage in New Mexico is Central Insurance at an average rate of $192 annually.

State minimum coverage limit	25/50/10
Average annual premium	$421
Average monthly premium	$35

Read our methodology

Are the New Mexico minimum coverage requirements changing in 2025?

New Mexico car insurance requirements will not change in 2025. You do not need to make any changes if you have minimum coverage. If mandatory coverage changes in the future, your insurer will inform you, along with any rate changes.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated values of coverage and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

What does minimum car insurance cover in New Mexico?

New Mexico requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

New Mexico drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

PEOPLE ASK:

Is New Mexico minimum car insurance enough?

It may not be. Even a moderately serious accident could exceed the state minimum limits of 25/50/10, and minimum coverage may not cover all accident costs. Furthermore, state minimums do not cover your vehicle; you need to add comprehensive and collision coverage.

How much car insurance is enough in New Mexico?

Car insurance isn't one size fits all. The amount of coverage you need depends on your assets, net worth and risk level.

For example, if you are financially stable and can afford to pay out of pocket for medical costs and repairs, you may keep insurance limits low. However, you may be sued for the cost difference if you have a sizeable net worth and don't carry enough insurance to cover expenses.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

New Mexico penalties for driving without car insurance

Since New Mexico requires its drivers to carry car insurance, failing to do so has consequences. Although you may be tempted to skip coverage to save money, you'll wind up paying heavily in the long run.

Failing to carry New Mexico car insurance has penalties including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

Fines	$300
Other penalties	Registration suspension
Jail time	No

Read our methodology

New Mexico minimum coverage cost by age group

Younger drivers pay for more car insurance because they lack experience behind the wheel. Fortunately, rates decrease as drivers age.

The table below breaks down the cost of car insurance for various age groups. Central Insurance has the best rates for teens with minimum coverage averaging $700. Central Insurance offers the cheapest coverage for adults at $205.

Additionally, females and males pay different rates. The average rate for a 40-year-old female is $432, and the average rate for a 40-year-old male is $410, a difference of $22.

Male

Male
Female

Age	Company	Male annual premium	Male monthly premium
16	Central Insurance	$868	$72
16	Geico	$1,475	$123
16	State Farm	$1,486	$124
16	Progressive	$2,074	$173
16	Nationwide	$2,538	$212
16	Iowa Farm Bureau	$2,617	$218
16	Kemper	$2,766	$231
16	Allstate	$3,655	$305
16	Farmers	$4,484	$374
17	Central Insurance	$748	$62
17	Geico	$1,157	$96
17	Progressive	$1,183	$99
17	State Farm	$1,284	$107
17	Iowa Farm Bureau	$1,595	$133
17	Kemper	$2,041	$170
17	Nationwide	$2,327	$194
17	Allstate	$3,070	$256
17	Farmers	$3,322	$277
18	Central Insurance	$641	$53
18	Progressive	$948	$79
18	Geico	$1,038	$87
18	State Farm	$1,095	$91
18	Iowa Farm Bureau	$1,397	$116
18	Kemper	$1,936	$161
18	Nationwide	$2,086	$174
18	Allstate	$2,226	$186
18	Farmers	$2,755	$230
19	Central Insurance	$544	$45
19	Progressive	$685	$57
19	Geico	$864	$72
19	State Farm	$933	$78
19	Kemper	$1,210	$101
19	Iowa Farm Bureau	$1,265	$105
19	Farmers	$1,541	$128
19	Allstate	$1,592	$133
19	Nationwide	$1,812	$151
20	Central Insurance	$388	$32
20	Progressive	$623	$52
20	Geico	$705	$59
20	State Farm	$798	$67
20	Iowa Farm Bureau	$1,092	$91
20	Kemper	$1,193	$99
20	Farmers	$1,353	$113
20	Allstate	$1,377	$115
20	Nationwide	$1,511	$126
21	Central Insurance	$388	$32
21	Geico	$541	$45
21	Progressive	$562	$47
21	State Farm	$669	$56
21	Iowa Farm Bureau	$773	$64
21	Nationwide	$918	$77
21	Kemper	$970	$81
21	Allstate	$1,096	$91
21	Farmers	$1,418	$118
22	Central Insurance	$388	$32
22	Geico	$495	$41
22	Progressive	$522	$44
22	State Farm	$593	$49
22	Iowa Farm Bureau	$687	$57
22	Nationwide	$824	$69
22	Kemper	$980	$82
22	Allstate	$1,007	$84
22	Farmers	$1,346	$112
23	Central Insurance	$388	$32
23	Geico	$465	$39
23	Progressive	$482	$40
23	State Farm	$513	$43
23	Iowa Farm Bureau	$655	$55
23	Kemper	$667	$56
23	Nationwide	$768	$64
23	Allstate	$950	$79
23	Farmers	$1,225	$102
24	Central Insurance	$388	$32
24	State Farm	$445	$37
24	Geico	$447	$37
24	Progressive	$455	$38
24	Iowa Farm Bureau	$631	$53
24	Kemper	$657	$55
24	Nationwide	$728	$61
24	Allstate	$862	$72
24	Farmers	$1,178	$98
25	Central Insurance	$258	$22
25	State Farm	$391	$33
25	Progressive	$403	$34
25	Geico	$435	$36
25	Iowa Farm Bureau	$503	$42
25	Kemper	$525	$44
25	Farmers	$664	$55
25	Nationwide	$687	$57
25	Allstate	$786	$66
30	Central Insurance	$216	$18
30	State Farm	$318	$27
30	Geico	$370	$31
30	Progressive	$374	$31
30	Iowa Farm Bureau	$385	$32
30	Kemper	$456	$38
30	Nationwide	$588	$49
30	Farmers	$604	$50
30	Allstate	$774	$65
35	Central Insurance	$199	$17
35	State Farm	$316	$26
35	Progressive	$360	$30
35	Geico	$367	$31
35	Iowa Farm Bureau	$385	$32
35	Kemper	$492	$41
35	Nationwide	$557	$46
35	Farmers	$564	$47
35	Allstate	$774	$65
40	Central Insurance	$192	$16
40	State Farm	$321	$27
40	Progressive	$355	$30
40	Iowa Farm Bureau	$359	$30
40	Geico	$369	$31
40	Kemper	$472	$39
40	Farmers	$538	$45
40	Nationwide	$545	$45
40	Allstate	$774	$65
45	Central Insurance	$189	$16
45	State Farm	$324	$27
45	Progressive	$353	$29
45	Iowa Farm Bureau	$356	$30
45	Geico	$367	$31
45	Kemper	$472	$39
45	Farmers	$519	$43
45	Nationwide	$537	$45
45	Allstate	$774	$65
50	Central Insurance	$188	$16
50	Iowa Farm Bureau	$313	$26
50	State Farm	$318	$27
50	Progressive	$343	$29
50	Geico	$383	$32
50	Kemper	$419	$35
50	Farmers	$498	$42
50	Nationwide	$529	$44
50	Allstate	$797	$66
55	Central Insurance	$192	$16
55	State Farm	$310	$26
55	Iowa Farm Bureau	$313	$26
55	Progressive	$348	$29
55	Geico	$383	$32
55	Kemper	$473	$39
55	Farmers	$477	$40
55	Nationwide	$525	$44
55	Allstate	$797	$66
60	Central Insurance	$203	$17
60	State Farm	$302	$25
60	Iowa Farm Bureau	$309	$26
60	Progressive	$346	$29
60	Geico	$386	$32
60	Kemper	$431	$36
60	Farmers	$497	$41
60	Nationwide	$529	$44
60	Allstate	$814	$68
65	Central Insurance	$223	$19
65	State Farm	$302	$25
65	Iowa Farm Bureau	$309	$26
65	Progressive	$356	$30
65	Geico	$398	$33
65	Kemper	$515	$43
65	Nationwide	$541	$45
65	Farmers	$568	$47
65	Allstate	$860	$72
70	Central Insurance	$255	$21
70	State Farm	$321	$27
70	Progressive	$379	$32
70	Iowa Farm Bureau	$381	$32
70	Geico	$434	$36
70	Nationwide	$573	$48
70	Kemper	$586	$49
70	Farmers	$644	$54
70	Allstate	$860	$72
75	Central Insurance	$302	$25
75	State Farm	$359	$30
75	Progressive	$429	$36
75	Iowa Farm Bureau	$433	$36
75	Geico	$470	$39
75	Nationwide	$628	$52
75	Kemper	$671	$56
75	Farmers	$734	$61
75	Allstate	$981	$82
16	USAA	$930	$78
17	USAA	$708	$59
18	USAA	$564	$47
19	USAA	$485	$40
20	USAA	$420	$35
21	USAA	$314	$26
22	USAA	$292	$24
23	USAA	$272	$23
24	USAA	$260	$22
25	USAA	$246	$21
30	USAA	$211	$18
35	USAA	$202	$17
40	USAA	$194	$16
45	USAA	$191	$16
50	USAA	$191	$16
55	USAA	$194	$16
60	USAA	$200	$17
65	USAA	$217	$18
70	USAA	$250	$21
75	USAA	$287	$24

Read our methodology

Age	Company	Female annual premium	Female monthly premium
16	Central Insurance	$868	$72
16	Geico	$1,452	$121
16	State Farm	$1,165	$97
16	Progressive	$1,878	$157
16	Nationwide	$2,240	$187
16	Iowa Farm Bureau	$2,507	$209
16	Kemper	$2,698	$225
16	Allstate	$3,695	$308
16	Farmers	$4,027	$336
17	Central Insurance	$748	$62
17	Geico	$1,150	$96
17	Progressive	$1,066	$89
17	State Farm	$1,003	$84
17	Iowa Farm Bureau	$1,460	$122
17	Kemper	$1,899	$158
17	Nationwide	$2,061	$172
17	Allstate	$2,671	$223
17	Farmers	$3,001	$250
18	Central Insurance	$641	$53
18	Progressive	$877	$73
18	Geico	$1,047	$87
18	State Farm	$866	$72
18	Iowa Farm Bureau	$1,283	$107
18	Kemper	$1,857	$155
18	Nationwide	$1,852	$154
18	Allstate	$1,828	$152
18	Farmers	$2,515	$210
19	Central Insurance	$544	$45
19	Progressive	$652	$54
19	Geico	$881	$73
19	State Farm	$747	$62
19	Kemper	$1,147	$96
19	Iowa Farm Bureau	$1,122	$94
19	Farmers	$1,434	$120
19	Allstate	$1,470	$123
19	Nationwide	$1,637	$136
20	Central Insurance	$388	$32
20	Progressive	$596	$50
20	Geico	$715	$60
20	State Farm	$653	$54
20	Iowa Farm Bureau	$1,073	$89
20	Kemper	$1,141	$95
20	Farmers	$1,249	$104
20	Allstate	$1,155	$96
20	Nationwide	$1,390	$116
21	Central Insurance	$388	$32
21	Geico	$558	$47
21	Progressive	$541	$45
21	State Farm	$558	$47
21	Iowa Farm Bureau	$733	$61
21	Nationwide	$867	$72
21	Kemper	$942	$79
21	Allstate	$996	$83
21	Farmers	$1,272	$106
22	Central Insurance	$388	$32
22	Geico	$507	$42
22	Progressive	$517	$43
22	State Farm	$507	$42
22	Iowa Farm Bureau	$673	$56
22	Nationwide	$784	$65
22	Kemper	$937	$78
22	Allstate	$975	$81
22	Farmers	$1,194	$100
23	Central Insurance	$388	$32
23	Geico	$494	$41
23	Progressive	$477	$40
23	State Farm	$442	$37
23	Iowa Farm Bureau	$648	$54
23	Kemper	$642	$54
23	Nationwide	$740	$62
23	Allstate	$893	$74
23	Farmers	$1,101	$92
24	Central Insurance	$388	$32
24	State Farm	$399	$33
24	Geico	$480	$40
24	Progressive	$448	$37
24	Iowa Farm Bureau	$641	$53
24	Kemper	$628	$52
24	Nationwide	$703	$59
24	Allstate	$824	$69
24	Farmers	$1,072	$89
25	Central Insurance	$258	$22
25	State Farm	$359	$30
25	Progressive	$410	$34
25	Geico	$463	$39
25	Iowa Farm Bureau	$467	$39
25	Kemper	$506	$42
25	Farmers	$612	$51
25	Nationwide	$671	$56
25	Allstate	$803	$67
30	Central Insurance	$216	$18
30	State Farm	$318	$27
30	Geico	$393	$33
30	Progressive	$382	$32
30	Iowa Farm Bureau	$447	$37
30	Kemper	$439	$37
30	Nationwide	$588	$49
30	Farmers	$585	$49
30	Allstate	$803	$67
35	Central Insurance	$199	$17
35	State Farm	$316	$26
35	Progressive	$371	$31
35	Geico	$392	$33
35	Iowa Farm Bureau	$443	$37
35	Kemper	$474	$40
35	Nationwide	$561	$47
35	Farmers	$585	$49
35	Allstate	$803	$67
40	Central Insurance	$192	$16
40	State Farm	$321	$27
40	Progressive	$360	$30
40	Iowa Farm Bureau	$433	$36
40	Geico	$391	$33
40	Kemper	$464	$39
40	Farmers	$613	$51
40	Nationwide	$545	$45
40	Allstate	$803	$67
45	Central Insurance	$189	$16
45	State Farm	$324	$27
45	Progressive	$358	$30
45	Iowa Farm Bureau	$433	$36
45	Geico	$387	$32
45	Kemper	$467	$39
45	Farmers	$564	$47
45	Nationwide	$533	$44
45	Allstate	$803	$67
50	Central Insurance	$188	$16
50	Iowa Farm Bureau	$338	$28
50	State Farm	$318	$27
50	Progressive	$342	$29
50	Geico	$403	$34
50	Kemper	$418	$35
50	Farmers	$508	$42
50	Nationwide	$521	$43
50	Allstate	$770	$64
55	Central Insurance	$192	$16
55	State Farm	$310	$26
55	Iowa Farm Bureau	$342	$29
55	Progressive	$340	$28
55	Geico	$403	$34
55	Kemper	$466	$39
55	Farmers	$472	$39
55	Nationwide	$514	$43
55	Allstate	$770	$64
60	Central Insurance	$203	$17
60	State Farm	$302	$25
60	Iowa Farm Bureau	$342	$29
60	Progressive	$341	$28
60	Geico	$403	$34
60	Kemper	$422	$35
60	Farmers	$459	$38
60	Nationwide	$510	$43
60	Allstate	$787	$66
65	Central Insurance	$223	$19
65	State Farm	$302	$25
65	Iowa Farm Bureau	$346	$29
65	Progressive	$361	$30
65	Geico	$410	$34
65	Kemper	$510	$43
65	Nationwide	$518	$43
65	Farmers	$500	$42
65	Allstate	$830	$69
70	Central Insurance	$255	$21
70	State Farm	$321	$27
70	Progressive	$376	$31
70	Iowa Farm Bureau	$387	$32
70	Geico	$436	$36
70	Nationwide	$533	$44
70	Kemper	$585	$49
70	Farmers	$558	$47
70	Allstate	$830	$69
75	Central Insurance	$302	$25
75	State Farm	$359	$30
75	Progressive	$400	$33
75	Iowa Farm Bureau	$439	$37
75	Geico	$473	$39
75	Nationwide	$573	$48
75	Kemper	$667	$56
75	Farmers	$634	$53
75	Allstate	$944	$79
16	USAA	$838	$70
17	USAA	$636	$53
18	USAA	$509	$42
19	USAA	$433	$36
20	USAA	$382	$32
21	USAA	$291	$24
22	USAA	$271	$23
23	USAA	$258	$22
24	USAA	$246	$21
25	USAA	$238	$20
30	USAA	$216	$18
35	USAA	$208	$17
40	USAA	$202	$17
45	USAA	$197	$16
50	USAA	$196	$16
55	USAA	$197	$16
60	USAA	$202	$17
65	USAA	$216	$18
70	USAA	$242	$20
75	USAA	$270	$23

Read our methodology

New Mexico minimum coverage cost by city

Alamogordo drivers pay the least for minimum coverage in New Mexico at $381. However, Albuquerque pay the most at $543.

Car insurance rates vary by city. For example, drivers in larger cities with a high traffic volume or vehicle theft rate pay higher rates.

The table below shows average minimum coverage rates for cities in New Mexico.

City	Average annual premium	Average monthly premium
Alamogordo	$381	$32
Farmington	$392	$33
Roswell	$413	$34
Clovis	$417	$35
Carlsbad	$423	$35
Hobbs	$431	$36
Las Cruces	$439	$37
Santa Fe	$467	$39
Rio Rancho	$528	$44
Albuquerque	$543	$45

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Optional car insurance coverage in New Mexico

New Mexico requires drivers to carry car insurance to pay for injuries and damages caused to others. However, drivers don't have to carry coverage for their vehicle unless required by a loan or lease.

Drivers may choose optional coverages such as:

Collision. Collision coverage pays for damages to your vehicle if you cause an accident.
Comprehensive. This coverage pays for damages to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
Roadside assistance. If you run out of gas, need a tire changed, or have a dead battery roadside assistance will send someone to help.
Gap. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Methodology

Insurance.com commissioned state minimum car insurance rates from Quadrant Information Systems based on a 40-year-old driver with good credit and a clean driving history, driving a 2023 Honda Accord LX. Rates are based on all coverages required by law at minimum coverage limits. Rates were also fielded for various additional age groups. State laws were gathered from state DMV and insurance department websites.

New Mexico car insurance laws and requirements: FAQs

Is it mandatory to have car insurance in New Mexico?

Yes, New Mexico requires that you carry at least the minimum mandatory coverage. Necessary coverage includes 25/50/10.

Will my bare minimum car insurance cover me in another state?

Yes, your car insurance covers claims in another state, even if the minimums are higher in the other state.

What happens if I drive without car insurance in New Mexico?

If you're caught driving without car insurance in New Mexico, you may face fines, a driver's license suspension, having your vehicle impounded, and increased car insurance rates. Additionally, you may face jail time, especially for multiple violations.