New Mexico Auto Insurance Quotes and
Coverage Guide
New Mexico Motor Vehicle Insurance
Questions & AnswersQ: Is auto insurance mandatory?
A: The Mandatory Financial Responsibility Act (MFRA)
requires that every owner of a motor vehicle
registered in New Mexico demonstrate proof of
financial responsibility for liability for damages
that may arise from the operation of the motor
vehicle. At the time of titling and registering a
vehicle, you must sign a statement affirming you are
financially responsible as defined in the MFRA. But
don’t think you can get away with fibbing in the
Land of Enchantment. If you don’t have the insurance
card you should always carry in your vehicle when
you’re pulled over, it’s ticket time. And don’t try
that old trick of trying to hand the officer a
tortilla, instead. He/she will know the difference
and will take the enchantment right out of your day.
Q: Is New Mexico a "tort" state?
A: Yes, and that’s not a shortened form of
“tortilla.” It’s an insurance-biz buzzword that
basically means there are no restrictions on
lawsuits. When you get a little too enchanted
looking at the hot-air balloons, yuccas,
roadrunners, and spectacular sunsets, and run right
into the guy driving in front of you who’s doing the
same thing, you can be sued by that guy and any
passengers he has for pain and suffering as well as
for out-of-pocket medical expenses.
Q: What type of insurance is required to purchase
and maintain a New Mexico tag and registration?
A: You must have a liability policy with a minimum
of $60,000 in coverage: $25,000 coverage for bodily
injury to or death of one person, $50,000 coverage
for bodily injury to or death of two or more
persons, and $10,000 for property damage you may
cause by wandering off the road in the Land of
Enchantment and running into the car parked there.
Q: Other than my driving record and type of car,
what other factors do insurance
companies use to determine my premiums? Do all
insurance companies look at the
same things?
A: Most insurance companies look at driving records,
type of car, use of vehicle, location of vehicle,
and age of driver. But a few might just look at you.
So be sure to shower and shave, and make sure no
roasted green chiles are between your teeth before
you visit.
Q: What are the reasons for which my policy can be
cancelled?
A: New Mexico law permits the policy to be cancelled
for a number of reasons. A few of them are:
-- Non-payment of premium
-- The insurance was obtained through fraudulent
misrepresentation.
-- You or anyone who customarily operates your
vehicle has had his or her driver’s license
suspended or revoked during the policy period.
-- The insured vehicle, which is rated as a private
passenger auto, is used regularly
and frequently for commercial purposes.
-- The insurance company is placed in rehabilitation
or receivership.
-- They just plain don’t like you, your teeth, or
your tortillas. (Just kidding.)
Q: What if I fail to keep insurance on my vehicle
that I’ve registered in New Mexico?
A: Vehicles that do not have the minimum liability
insurance are subject to having that vehicle
registration suspended. And when you get your Notice
of Suspension of Registration from the MVD, you have
10 days to take your registration and plates in to
them or be subject to the penalties prescribed by
law, including criminal penalties. And if you’re
caught with no insurance after a wreck, not only
will the investigating officer give you a ticket for
that, but he will take one look at your teeth and
that tortilla you handed him and:
-- Issue a temporary operation sticker, which is
valid for thirty days after the date the sticker is
issued. The officer shall also mail or deliver a
duplicate of the issued sticker to the Motor Vehicle
Division.
-- Remove the license plate from the vehicle and
send it with the duplicate of the sticker to the
Motor Vehicle Division. If the license plate cannot
be removed, the officer shall permanently deface the
plate – which may mean one of two things: He’ll
either whip out a can and spray paint it or whip out
a gun and shoot it. Just be prepared.
Q: I am not a resident of New Mexico, but I visit
for several months during the year. Do I need New
Mexico insurance?
A: Vehicles owned by non-residents need not be
registered and therefore do not need to be insured
with New Mexico insurance if the vehicle is legally
registered, displays a current license plate, and is
insured from your home state. And if you’re
concerned your plates might get shot or spray
painted, you might want to keep that insurance card
handy in your glove box. Right next to the
tortillas.
Q: Will my minimum-limit New Mexico policy protect
me if I drive to another state
that requires higher minimum liability limits?
A: Your New Mexico policy limits will be interpreted
to provide at least the minimum limits required by
the laws of the state in which you are operating
your vehicle. But as for protection? You might try a
week-old tortilla, which is considered a deadly
weapon in some parts of the country.
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