New Mexico Auto Insurance Laws
Auto Insurance Laws and Trends in N.M.
The insurance system that New Mexico uses is the tort system. This means that the responsible party in the event of an automobile accident must pay for all damages and injuries incurred. The victims can also choose to seek compensation for pain and suffering. Because of this, it is mandatory for all drivers to carry the following minimum limits:
- Bodily injury: $20,000 per person and $50,000 per accident
- Property damage: $10,000 per accident
Uninsured motorists in New Mexico
New Mexico has the highest rate of uninsured drivers in the entire country. According to the Insurance Information Institute, over 29% of drivers do not carry auto insurance. For this reason, it is highly recommended that all motorists carry under/uninsured motorist coverage. Otherwise, if you are involved in an accident with a driver who doesn't carry adequate insurance, or has no insurance at all, you will have to pay out of pocket, and then seek reimbursement through court.
Drunk drivers in New Mexico
Another top priority for the state of New Mexico is reducing the number of drunk drivers on the road. There are regular and random check points around the state that will stop drivers to test their sobriety. If caught driving under the influence of alcohol or drugs, first time offenders will receive penalties up to $500 in fines, 3 months in jail, and a 90 -day suspension of all driving privileges. Penalties for repeat offenders are even stricter.
Teen drivers in New Mexico
Teenagers in New Mexico account for a majority of all fatal accidents than any other age group. New Mexico has implemented harsh laws regulating teen driving habits. It is prohibited for teens to talk or text on a cell phone – regardless if it is hand held or hands free. There are also three stages involved if a teen wants a driver's license:
- Instruction: must be 15 years old and complete 50 hours of supervised driving (10 hours being at night)
- Provisional: must have this for at least 1 year prior to obtaining an unrestricted license. Can only drive at certain hours of the day.
- Unrestricted: This is a full driver's license. Any driving violations can result in suspension or restrictions.