New Mexico Car Insurance Laws
Automobile insurance is not only an important product to have, it is also required by the New Mexico Motor Vehicle Department in order to register an automobile. All policies purchased within the state must also meet certain requirements in order to fulfill financial responsibility laws. This means that motorists must have liability coverage with limits of $25,000 for bodily injury to a single person, $50,000 for bodily injury per accident, and $10,000 for property damage.
Choosing not to buy New Mexico auto insurance may result in a series of consequences that could be easily avoided by purchasing a protection plan. According to the state Mandatory Financial Responsibility Act, if the owner of a vehicle is caught without the proper quantities of coverage they may have their vehicle registration suspended, and may be unable to register again until adequate proof of coverage has been given. If an automobile owner receives a Notice of Suspension of Registration the owner has ten days (starting from when the notice was received) to turn in their registration and license plates to the Motor Vehicle Department (MVD) or face potential criminal penalties. Because of recent advancements in technology it may be difficult for motorists to avoid meeting these requirements, and driving uninsured is almost never worth the risk.
To determine if an individual is adequately insured in the Land of Enchantment, the MVD utilizes Explore Information Services in order to match data provided by various insurers with vehicles registered within the state. This information is then stored on the New Mexico Insurance Identification Database (IIDB) in order to quickly and efficiently identify when a motorist is not adequately insured. If a driver is found to have an insufficient amount of coverage the IIDB and the MVD will likely issue a Notice of Noncompliance. If this happens and a motorist is properly insured they are encouraged to contact the IIDB in order to have these records updated, but if a vehicle owner is uninsured and driving illegally, they are urged to purchase a policy to meet state requirements.
When a motorist is requested to provide proof of insurance there are a number of ways that one can provide verification that they have met state financial responsibility requirements. In order to even register a vehicle a resident must first be able to prove that they can legally operate the automobile in question by purchasing a vehicle protection plan. The most common method is by producing an insurance card provided by an insurer that details the name of the policyholder, insurer, make and model of the automobile, as well as the Vehicle Identification Number (VIN). Additional forms of proof also include a current copy of one's auto policy, as well as a letter from an insurer printed on official company letterhead that verifies the presence of a protection plan.