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No, New Mexico is not ano-fault state for auto insurance. New Mexico is an "at-fault" or "tort" state, which means the person who is at fault for a car accident is responsible for paying for other people's injuries and property damage resulting from the accident. Additionally, unlike in no-fault states, drivers in New Mexico can file lawsuits to seek compensation for even basic medical expenses after an accident.
In typical no-fault states, drivers are required to carry personal injury protection (PIP) insurance to pay for their own medical expenses after a car accident, regardless of fault. In New Mexico, PIP is not required.
Key Things to Know About Insurance in New Mexico
- When an accident occurs, the insurance company for each driver who was involved will assign an adjuster to determine who was at at fault. To collect payment for their losses, victims must file a claim with the at-fault driver's insurance company.
- Depending on how long fault takes to be determined, drivers can file a claim with their own insurance company if they have coverage applicable to their own expenses, such as collision and comprehensive Their insurer can then recoup the cost from the at-fault driver's insurer if the policyholder is not determined to be at fault.
- New Mexico uses a pure comparative negligence system, meaning drivers can collect damages proportionate to their fault in causing the crash. For example, if they're 99% at fault, they can get 1% from the other driver.
- Being an "at-fault" / "tort" state helps keep New Mexico's insurance costs relatively low, compared to no-fault states.
- New Mexico requires all drivers to carry liability insurance, a type of insurance that pays for others' expenses after you cause an accident, such as damage to others' vehicles and their medical expenses.
In addition to New Mexico's minimum coverage requirements, you may want to purchase types of coverage that will pay for your own expenses after an accident. For example, collision and comprehensive insurance will cover damage to your vehicle, regardless of fault.
To learn more, check out WalletHub's guides to no-fault insurance and the cheapest car insurance in New Mexico.
This answer was first published on 06/19/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
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FAQs
States are either considered “fault” or “no-fault.” (New Mexico is a “fault” state.) Fault insurance is the standard for the majority of states and it means the at-fault driver is held responsible for any damages caused by the accident.
Is New Mexico a no-fault state for car accidents? ›
No, New Mexico is not a no-fault state. Instead, car accident laws in New Mexico are fault-based, placing financial responsibility on the person or entity at fault for the accident. Additionally, New Mexico follows the pure comparative negligence doctrine.
What happens if the person at fault in an accident has no insurance in New Mexico? ›
When the at-fault driver is uninsured, there is often no insurance coverage from which to recover monetary compensation for your injuries and damages unless you have uninsured/underinsured motorist coverage. The same can be true if the accident is a hit and run and the at-fault driver cannot be identified.
Is New Mexico a PIP state? ›
In typical no-fault states, drivers are required to carry personal injury protection (PIP) insurance to pay for their own medical expenses after a car accident, regardless of fault. In New Mexico, PIP is not required.
What are the liability laws in New Mexico? ›
Drivers are required to operate motor vehicles with a minimum of liability insurance. Minimum liability amounts required in New Mexico are: $25,000 for bodily injury or death to one person in any accident, subject to this limit for one person.
How long do you have to report an accident in New Mexico? ›
The driver must report the accident "immediately, by the quickest means of communication." The driver must also file a written report of the accident with the New Mexico Department of Transportation within five days.
Has New Mexico adopted no-fault insurance? ›
New Mexico is not a no-fault state, meaning it matters if someone else caused your accident. You will file your auto repair and medical reimbursem*nt claims with the at-fault party's insurance provider. Navigating New Mexico's fault laws after a car accident may take help from an Albuquerque car accident lawyer.
How does uninsured motorist coverage work in New Mexico? ›
Essentially, after an accident, if the at-fault driver lacks liability coverage, your own UM/UIM coverage would kick in. You can also stack insurance UM policies in New Mexico. This allows a policyholder to combine the policy's limits for each vehicle.
Can your car get towed for no insurance in New Mexico? ›
New Mexico has the second highest percentage of uninsured drivers in the country. If you're caught driving without insurance in Albuquerque, police can have your car towed.
Is it legal in New Mexico to drive without auto insurance? ›
New Mexico law requires drivers to have auto liability insurance.
The minimum amount of New Mexico auto insurance coverage is $25,000/$50,000/$10,000. In the event of a covered accident, your limits for bodily injury are $25,000 per person, with a total maximum of $50,000 per incident. It also covers up to $10,000 for damage to another person's property.
What is full coverage insurance in New Mexico? ›
Full coverage insurance in New Mexico is usually defined as a policy that provides more than the state's minimum liability coverage, which is $25,000 in bodily injury coverage per person, up to $50,000 per accident, and $10,000 in property damage coverage.
Is New Mexico a tort state? ›
New Mexico is a “fault,” “at-fault,” or “tort” state for car accidents. This means that the driver who caused the accident is the one liable to pay for victims' damages.
What is the negligence law in New Mexico? ›
To prove negligence, you must show that another person's actions caused you to be hurt. The law in New Mexico states that all those who cause another injury are responsible for the subsequent harm. This includes the injuries themselves but also the damages the injury brought about in the person's life.
What is a comparative fault in New Mexico? ›
New Mexico is unusual in that pure comparative negligence applies in personal injury lawsuits. In a nutshell, this means that after a car accident, you can pursue compensation from another party. However, the amount of damages you can recover is reduced by the percentage of fault you are.
What are the elements of negligence in New Mexico? ›
In New Mexico, the elements of negligence are: 1) a duty or obligation, recognized by the law, requiring the defendant to conform to a certain standard of conduct, for the protection of others against unreasonable risks, 2) a failure on defendant's part to conform to the required standard, 3) a reasonable close causal ...
Is New Mexico on a fault? ›
There are 162 Quaternary faults in New Mexico as shown in the Quaternary faults and folds database hosted by the U.S. Geological Survey. Of these, 20 are considered active based on evidence for surface-rupturing earthquakes within the last 15,000 years.
Which states have no-fault insurance? ›
No-fault insurance states
In total, there are 12 no-fault states in the U.S. They are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. The minimum PIP insurance requirements for these states is as follows.
