What is the New Mexico Insurance Identification Database?
The New Mexico Mandatory Financial Responsibility Act makes it illegal to drive in the Land of Enchantment without first purchasing vehicle coverage that meets the state's minimum requirements. The NM Insurance Identification Database (IIDB) was created to assist in keeping track of insured motorists by cross referencing information from coverage providers and the state DMV. This helps to reduce the number of uninsured motorists driving on the estimated 59,927 miles of public roadway within the state. To avoid potential consequences for driving while uninsured, residents are strongly encouraged to ensure that their coverage provider updates their information electronically when necessary.
The Insurance Research Council estimates that in 2009 roughly 26 percent of motorists in the Land of Enchantment were driving while uninsured. If a motorist is identified as not having purchased New Mexico auto insurance they may be sent a Verification of Mandatory Automobile Insurance Letter by the IIDB. If a motorist receives such a letter, they have 30 days to present proof that a policy has been purchased or they will have their registration suspended. If an insured motorist receives one of these letters by mistake, they often only need to contact their coverage provider to have them electronically report any information needed by the state.
To avoid many of the potential consequences that typically come with driving while uninsured, residents are urged to obey New Mexico car insurance laws and purchase a policy before getting behind-the-wheel. Vehicle owners must maintain a plan with bodily injury liability that has minimum limits of $25,000 for a single person and $50,000 for two people or more, as well as property damage liability with a minimum limit of $10,000. Residents are also encouraged to remember that these are the minimum limits, and purchasing more extensive coverage is often recommended. For example, $10,000 for property damage liability may not be a high enough threshold if the policyholder is at-fault for a serious accident. If this limit is exceeded, the policyholder may end up paying for expensive repairs entirely out-of-pocket.
Finding an affordable policy with more extensive protection can often be a simple process. Residents can contact multiple insurers to receive sample rates, or obtain free car insurance quotes online for quick and efficient results. By comparing the prices offered by several different insurers over the Internet, residents can often analyze a wide variety of sample premiums, potentially providing affordable options. By ensuring that one's coverage provider relays all policy information to the NM IIDB, vehicle owners in the Land of Enchantment can hopefully avoid interacting with this helpful system.