The Complete Guide to New Mexico Car Insurance
Lemonade is on the way to the Land of Enchantment and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things NM car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in New Mexico?
Car insurance in New Mexico averages $212/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Albuquerque | $259 |
| Las Cruces | $205 |
| Rio Rancho | $234 |
| Santa Fe | $217 |
| Roswell | $216 |
Source: ValuePenguin
Why is car insurance so high in New Mexico?
New Mexico drivers face unique risks that drive insurance costs
Uninsured drivers
21.8% of drivers in New Mexico are uninsured vs. 13% nationally, raising costs for everyone else.
Car theft
FBI data shows there were 10,408 reported motor vehicle thefts in 2024 in NM, down 1% from the previous year.
Natural disasters
NM has a relatively low FEMA disaster rating of 30, lowering comprehensive coverage costs, though wildfire and inland flooding are still threats.
What car insurance do I need in New Mexico?
All New Mexico drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for New Mexico drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Bodily injury liability | $25,000 (per person) $50,000 (per accident) | Medical bills, lost wages, and other costs when you hurt someone else in an accident | Your own injuries, damage to your car, amounts above your policy limits |
| Property damage liability | $10,000 | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
What additional car insurance coverages are offered in New Mexico?
Beyond state minimums, these optional coverages provide
extra protection for New Mexico drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in New Mexico?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from desert trail running
How much car insurance do I need in New Mexico?
You need enough coverage to protect yourself financially when accidents happen. If your car needed major repairs, could you afford these local New Mexico labor rates? Keep in mind, parts and materials cost extra.
| City | Body repair | Frame repair | Mechanical repair | Paint repair |
|---|---|---|---|---|
| Albuquerque | $76 | $118 | $147 | $76 |
| Rio Rancho | $76 | $118 | $147 | $76 |
| Santa Fe | $76 | $118 | $147 | $76 |
| Los Lunas | $76 | $118 | $147 | $76 |
| Las Cruces | $77 | $101 | $139 | $77 |
Source: Caliber
What happens if I drive without insurance in New Mexico?
New Mexico takes uninsured driving seriously, and the penalties add up fast.
Fines
Up to $300 for driving violations, up to $1,000 if you fail to surrender plates and registration.
Suspension
Registration suspension or plate confiscation at accident scenes.
Jail time
Up to 90 days for basic violations, up to six months if you don’t surrender documents.
What do you need to get a car insurance quote in New Mexico?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in New Mexico?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
New Mexico car insurance FAQs
Is New Mexico a no-fault state?
No, New Mexico isn’t a no-fault state. New Mexico operates under at-fault insurance. If you’re injured, you can pursue claims against the responsible party. PIP coverage isn’t mandatory.
Do I need insurance to register a car in New Mexico?
Yes, insurance is required to register a car in New Mexico. You must carry minimum liability coverage. Proof of insurance is required during registration — vehicles can’t be legally registered without active insurance.
What are the top risks for driving in New Mexico?
New Mexico’s rural roads feature high speed limits combined with concerning rates of impaired driving. Long distances between populated areas contribute to driver fatigue and crashes. Desert weather can change rapidly, while wildlife and livestock frequently enter roadways.
How long do I have to report an accident in New Mexico?
New Mexico requires accidents involving injury, death, or property damage over $500 to be reported immediately to law enforcement. Officers typically complete the report. You should notify your insurer as soon as possible. Failure to report may result in penalties.
What are the top safety tips for driving in New Mexico?
In New Mexico, ease up on those rural highways with high speed limits. Watch for wildlife and livestock on open roads. Take breaks to avoid getting tired on long drives. Weather can change fast.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
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