Cheap Auto Insurance in New Mexico

Auto Insurance Requirements in New Mexico

If you’re a driver in New Mexico you can choose to purchase affordable car insurance or deposit $60,000 cash or bond with the state treasurer in order to satisfy the state requirements for financial responsibility. It’s hard to imagine very many people will choose the second option with that much money involved. Nonetheless, there are those who do.

For the rest of us, the insurance we purchase in New Mexico will be a pretty standard 20/50/10 liability policy designed to pay for damage we cause when hitting someone else. The three numbers listed represent tens of thousands of dollars for injuries, deaths, and property damage. You can obviously get a policy with higher minimums, but the 20/50/10 is the least amount you will be able to get away with.

New Mexico keeps tabs on its drivers through an electronic system known as the New Mexico Insurance Information Database. Companies that sell affordable car insurance in New Mexico must report every new policy by logging into the database directly. They are also required to report canceled or lapsed policies whenever they occur. Most of this reporting is done through an automated system, meaning your lapsed or canceled policy will enter the system within minutes of expiration.

Should you allow your insurance policy to lapse the state will send you a letter in an attempt to clear up the matter. You’ll have so many days to return proof that you indeed maintained insurance coverage all along or that you purchased a new policy. If there are any penalties assessed they will depend on whether or not there was any time where you had no insurance on a registered vehicle. All of that information should be contained in the letter the state sends you.

Being Caught without Insurance

New Mexico law requires drivers to carry proof of insurance or their deposit whenever they’re driving. If you have an insurance policy your provider will send your card with information like your policy number, your vehicle identification number, dates of coverage, and so on. If you’ve chosen to leave a deposit the state treasurer should provide you with appropriate documentation. In either case you must provide the document you have to a police officer investigating an accident or conducting a traffic stop.

If you’re caught without proof of insurance or an appropriate deposit, you may be able to avoid penalties if you can furnish that proof at your subsequent court hearing. If it turns out you had no insurance or deposit in force you could be charged with a misdemeanor. Fines start at $300; additional fines and penalties could be assessed if you are charged with additional violations. You’ll probably also have your vehicle registration suspended for a certain amount of time. Repeated violations could result in a license suspension.

Cheap auto insurance is very affordable in New Mexico. Don’t take a chance at getting caught without it; it’s not worth it.

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