Auto Insurance in New Mexico


New Mexicans pay significantly higher annual auto insurance premiums compared to the rest of the country. In fact, its average annual premium rate is the eighth highest in the nation. This may be a reason that many drivers in the Land of Enchantment fail to purchase the minimum required auto insurance liability limits and are driving uninsured, putting many motorists on the road at risk.

The state has developed a program called “Drive Insured” to combat this serious problem and cut down the number of New Mexicans who are driving without insurance.

New Mexico’s Motor Vehicle Department (MVD) now has a NM Insurance Identification Database, also known as the IIDB, which matches insurance information provided by New Mexico’s licensed auto insurers with vehicle registrations. This database was created to identify those motorists who are driving uninsured. It can be found at

More about the IIDB – FAQ

Q: Who will use the database?

A: New Mexico law enforcement officials, New Mexico state agencies and the courts will use the IIDB to identify if a motor vehicle meets the required auto insurance liability minimums.

Q: What happens if I’m identified as not having adequate New Mexico auto insurance?

A: According to New Mexico law, the MVD will suspend your automobile registration if you fail to prove you have the required insurance coverage or if your automobile insurance company can not provide this information.

Q: What do I do if the MVD sends me a letter saying that I am out of compliance, but I have the required state minimum auto insurance?

A: Contact your New Mexico auto insurance agency right away and request that they enter your auto insurance policy information into the IIDB. The MVD will suspend your car’s registration if your insurance company fails to register your insurance information in the database within thirty days. You may also contact the IIDB on your own and supply the required auto insurance policy information.

It is the goal of this database-driven program to reduce the number of New Mexico motorists driving without auto insurance and thereby reducing the accidents they cause.

New Mexico’s mandatory auto insurance requirements

New Mexico auto insurance laws require you to meet state liability coverage minimums. If you own a motor vehicle in New Mexico, you are required to carry a minimum of:

  • $25,000 – bodily injury (BI), one person
  • $50,000 – bodily injury (BI), multiple victims, per accident
  • $10,000 – property damage (PD)

After you have met the required New Mexico auto insurance minimum liability coverages, request that your New Mexico insurance agent provide your policy information to the state’s IIDB at the website or contact them at 866-891-0665.

It is legal in New Mexico to drive with auto insurance from another state, but you are still required to meet the above minimum liability coverages. You will also need to complete and submit to the IIDB an “Affidavit of Out-of-State Insurance.” You must also show proof that you are a resident of another state. The necessary affidavits can be found at

Tips for reducing the cost of your New Mexico auto insurance policy

With the high cost of insuring your motor vehicle in New Mexico, it pays to be a savvy shopper. Do your homework. When shopping for auto insurance rates from various carriers, ask if they offer the following discounts:

  • Insuring multiple vehicles
  • Carrying multiple policies (auto insurance, home insurance, life insurance)
  • Paying in full
  • Being a good student or having a good student in the household
  • Installing anti-theft devices in your vehicle
  • Parking your car in a garage
  • Completing an approved drivers training
  • Good driver discount (no accidents)
  • Continuous coverage discount

Average annual cost of auto insurance

The 2011 average annual premium for auto insurance in New Mexico is $1837, the eighth highest annual premium rates in the nation. The national annual average for U.S. auto insurance is $1561.


New Mexico Motor Vehicle Department

New Mexico Insurance Identification Database (IIDB)