New Mexico Car Accident Rules & Regulations

Insurance System & Requirements

System type: New Mexico follows an at-fault insurance system, meaning the driver responsible for an accident is financially liable for damages. Sufficient insurance is critical to avoid out-of-pocket expenses and potential legal trouble in an accident.

Minimum liability required: State law mandates that all drivers carry a minimum liability insurance to cover bodily injury and property damage. The required minimums are:

• $25,000 for bodily injury or death of one person per accident
• $50,000 for total bodily injury or death of two or more people per accident
• $10,000 for property damage per accident

Alternatively, drivers can demonstrate financial responsibility by depositing $60,000 in cash or securities with the New Mexico State Treasurer or obtaining a surety bond in the same amount.

Uninsured/Underinsured motorist coverage: New Mexico requires insurance companies to offer UM/UIM coverage equal to your minimum liability. This coverage protects you if a driver hits you without insurance or insufficient insurance. 

However, when purchasing their policy, drivers can reject UM/UIM coverage in writing. Given the high number of uninsured drivers in New Mexico, this coverage is highly recommended.

Optional coverages:

• Collision coverage: Pays for damage to your own vehicle after an accident, regardless of fault
• Comprehensive coverage: Covers non-collision-related damage, such as theft, vandalism, hail, or flooding
• Medical Payments (MedPay) coverage: Helps cover medical bills for you and your passengers, no matter who was at fault
• Rental reimbursement: Covers rental car costs while your vehicle is repaired after a covered accident
• Emergency roadside assistance: Provides towing, battery jump-starts, flat tire assistance, and emergency fuel delivery
• Accidental death coverage: Pays a lump sum benefit if a covered driver or passenger dies in an accident

Rideshare insurance requirements: Drivers working for rideshare companies like Uber or Lyft in New Mexico must meet specific insurance requirements that vary based on their status:

Logged into the app:

• Minimum liability coverage: $50,000 per person, $100,000 per accident for bodily injury, and $25,000 for property damage
• Coverage may be provided by either the driver’s policy (if it includes rideshare coverage) or the rideshare company’s contingent policy

En route to pick up a passenger or during a ride:

• $1,000,000 in liability coverage provided by the rideshare company
• $1,000,000 in UM/UIM coverage per occurrence
• Collision and comprehensive coverage, if the driver has it on their policy

Penalties for non-compliance: 

• First offense:
  • Fine: Up to $300
  • Jail time: Up to 90 days
  • License and registration suspension: Until valid proof of insurance is provided
  • Vehicle immobilization: Possible for 30 days if driving with a suspended license
  • Payment of reinstatement fees and proof of insurance
• Second or subsequent offenses:
  • Fine: Up to $1,000
  • Jail time: Up to 6 months
  • Vehicle immobilization: Mandatory for 30 days unless it poses a hardship to the driver's immediate family

Fault & Negligence Laws

Negligence type 

New Mexico follows the pure comparative negligence rule. This means that even if you are partially responsible for an accident, you can still recover damages—but your percentage of fault will reduce your compensation.

Unlike states with modified comparative negligence (which bar recovery if you are 50% or more at fault), New Mexico allows claims even if you were 99% responsible for the accident.

Multi-vehicle collisions

New Mexico law applies pure comparative negligence to divide liability among all involved parties in accidents involving multiple vehicles. Each driver’s level of fault is determined, and compensation is distributed accordingly. If more than one driver shares fault, the court assigns percentages of responsibility, ensuring that each party pays only for their portion of the damages.

Passenger rights

Passengers injured in a car accident in New Mexico have the right to seek compensation for their medical bills, lost wages, and other damages. They may file claims against:

• The driver of the vehicle they were in (if that driver was at fault)
• Another driver involved in the accident
• A third party responsible for unsafe road conditions or a defective vehicle component

Passengers are rarely assigned fault in an accident, making it easier for them to recover damages. However, in rare cases—such as willingly riding with an intoxicated driver—they may share a percentage of liability.

Statute of Limitations

• Personal injury: Victims seeking compensation for injuries sustained in a car accident must file a lawsuit within three years from the accident date
• Wrongful death: If a car accident results in death, the deceased’s family has three years from the date of death to file a wrongful death lawsuit
• Property damage: The statute of limitations for damages to a vehicle or other property resulting from an accident is four years from the incident date
• Claims against the government: If the at-fault party is a government entity, a written notice of claim must be filed within 90 days of the accident for personal injury and six months for wrongful death. The lawsuit must be filed within two years 

Exceptions to the rule: 

• Minors or persons with disabilities: If the injured party is under 18 or legally incapacitated at the time of the accident, the statute of limitations may be paused until the disability ends, but not beyond one year after the disability ceases
• Absence of the defendant: If the at-fault party leaves New Mexico after the accident, the period they are absent does not count toward the statute of limitations
• Fraud or concealment: If the at-fault party fraudulently conceals their liability, the statute may be tolled until the fraud is discovered
• Discovery of injuries: If an injury is not immediately apparent, the statute may begin when the injury is discovered or reasonably should have been discovered

Procedures for MVAs & Police Involvement

When to file a report

Drivers involved in accidents resulting in injury, death, or property damage of $500 or more must report the accident to the appropriate authorities. If the accident occurs:

• Within a municipality: Report it to the local police department
• Outside municipal limits: Notify the New Mexico State Police

Filing a report

When an accident occurs, law enforcement must be notified immediately, regardless of the amount of property damage. Law enforcement officers will file an official Uniform Crash Report when the accident is reported. 

Accessing accident reports

• City police department reports: If your accident was reported to a city police department, you can check their website or visit them in person for ways to access reports
• County sheriff's office reports: If the accident occurred outside city limits but within county limits, the sheriff's office may provide the report online or in person
• New Mexico State Police reports:
  • Request online using their official submission form
  • Email a request to LERB.Accidents@dps.nm.gov
  • Mail, fax, or submit a request in person at the Department of Public Safety (DPS) headquarters

Fees for accessing reports: 

• $1.00 for the first page
• $0.25 for each additional page
• $6.75 for a report on a disc

Types of Compensation Available & Their Limits

• Economic damages: These cover tangible financial losses caused by the accident, such as medical expenses, lost wages, and property damage. Economic damages are meant to reimburse victims for the direct financial impact of the incident
• Non-economic damages: These compensate for intangible losses like pain and suffering, emotional distress, and loss of enjoyment of life. Unlike economic damages, they do not have a fixed dollar amount and vary based on the severity of the injury and its impact on the victim’s life
• Punitive damages: These are awarded in cases involving gross negligence or intentional misconduct to punish the wrongdoer and deter similar behavior in the future. They go beyond compensating the victim and are meant to hold the responsible party accountable for reckless or malicious actions
  • Damage caps: New Mexico does not impose caps on economic, non-economic, or punitive damages in personal injury cases, meaning victims can recover compensation based on the actual losses and circumstances of their case

Claims against the government: When filing a claim against a government entity or public employee, New Mexico law limits the amount of compensation under the Tort Claims Act:

• $200,000 for damage to or destruction of real property
• $400,000 per person for all other damages, excluding property and medical costs
• Punitive damages cannot be recovered from the state or its employees, even in gross negligence or misconduct case

Medical Payments & Health Coverage

At-fault driver’s insurance: If another driver caused the accident, their bodily injury liability coverage should cover your medical bills up to their policy limits. However, New Mexico follows a fault-based system, so you may need to file a claim and negotiate with their insurer or take legal action to recover compensation.

Your health insurance: Your private health insurance, Medicaid or Medicare can cover medical expenses after an accident. However, you may still need to pay deductibles, copays, or out-of-network costs. Your insurer may also seek reimbursement (subrogation) if you later receive a settlement.

UM/UIM coverage: UM/UIM coverage helps pay for medical bills if the at-fault driver has no insurance or lacks sufficient coverage. While not required in New Mexico, it can provide valuable protection.

MedPay coverage: MedPay coverage is an optional add-on to auto insurance that pays for medical expenses regardless of fault. MedPay can cover hospital bills, ambulance fees, and other medical costs, but it has policy limits, usually ranging from $1,000 to $10,000.

Out-of-pocket payments: If no other coverage is available, you may have to pay medical bills upfront and seek reimbursement later through an insurance claim or personal injury lawsuit.

Medical liens: If you cannot afford immediate medical care, some hospitals, doctors, or healthcare providers may agree to treat you on a lien basis. This means they defer payment until you receive a settlement, which they collect directly from your compensation.

Subrogation: If your health or auto insurance pays for medical costs, they may exercise subrogation rights, meaning they can seek reimbursement from any settlement or judgment you receive from the at-fault party.

Unique Local Considerations

Extreme heat and tire blowouts: High temperatures, often exceeding 100°F, can cause tire blowouts and reduce asphalt traction, increasing the risk of losing control.

Monsoon season and flash floods: Heavy summer rains, especially in July and August, create flooded roads, hydroplaning hazards, and vehicle submersion risks.

Winter ice and snow-related accidents: Black ice and snow-covered roads in higher elevations lead to skidding, rear-end collisions, and multi-car pileups.

Dust storms and low visibility crashes: Strong winds can create dust storms, causing sudden visibility loss and increasing the likelihood of high-speed highway crashes.

Wildfires and smoke-induced accidents: Wildfire smoke can reduce visibility, making it harder for drivers to see road signs, traffic signals, and other vehicles, increasing accident risks.

Visit NMRoads for real-time updates on road conditions, weather conditions, and traffic incidents. This tool facilitates safe and confident navigation of the Land of Enchantment's roads.

Local Resources & Contacts

New Mexico Department of Transportation (NMDOT): https://www.dot.nm.gov/

New Mexico Department of Public Safety (NMDPS): https://www.dps.nm.gov/

New Mexico State Police (NMSP): https://www.sp.nm.gov/

Motor Vehicle Division New Mexico (MVDNM): https://www.mvd.newmexico.gov/