• New Mexico Requires Liability InsuranceCrash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
  
  New Mexico, with over 59,900 miles of highway, is a very driver-friendly state. Insurance requirements for vehicles differ from state to state and according to vehicle type. Fortunately, New Mexico's insurance minimum requirements are not as strict as other states and this means that getting car insurance in New Mexico can be simple and affordable.
  
  

Liability

• New Mexico is a "Traditional Tort state" or "Fault" state. This means when driver "A" damages the car of driver "B," it is the responsibility of driver "A" to cover the damages with his insurance. This is contrary to the law of the "No Fault" state, in which it is the drivers' own insurance policy which covers any damages made to his vehicle, regardless of how the damages occurred. Because New Mexico is a "Fault" state, the state requires liability insurance be carried on all autos driving on the public roads. For this reason, the minimum requirement for auto insurance for property damage is $10,000.
  
  

Bodily Injury

• While damages to property can be tragic, much more so are the damages to persons. An accident can cause two main types of bodily injury, traumatic injury (injury caused and noticed at the scene of the accident or immediately after) and chronic injury (unusual strain put on a part of the body due to the accident.) Traumatic injury, such as a head wound or broken bone is noticeable directly after the accident and can range from mild to life threatening. While chronic injury (e.g. back pain, strained neck muscles or extreme mental stress) is not often life threatening, it can damage the quality of life of the victim. For this reason, New Mexico mandates a $25,000 per person bodily injury policy with up to $50,000 per accident as a state minimum.
  
  

Commercial Driving Insurance Minimums

• Because of the catastrophic consequences of a commercial driving accident to person and property, New Mexico has mandated very high insurance coverage for all commercial vehicles. A vehicle carrying household materials (a commercial moving truck or a delivery truck carrying goods to a retail store) must carry insurance covering damages and bodily injury up to 1.5 million dollars. Also very potentially dangerous, a vehicle carrying commercial property such as cars, boats, lumber or tile, must be insured up to $750,000.00, while a gas truck must be insured for up to $500,000 for property damage and bodily injury.