If you drive a vehicle in New Mexico, there are several state law requirements when it comes to securing auto insurance. Alcorn Insurance Agency in Chama, NM, specializes in providing comprehensive and affordable coverage to ensure their clients are in compliance. To help you understand these state requirements, they answer some of the most frequently asked questions regarding car insurance.

5 Auto Insurance FAQs

What Kind of Insurance Is Mandatory?

At the minimum, drivers are required to have liability insurance. This includes $10,000 to cover property damage and bodily harm involving others in an accident. The DMV also requires $25,000 for personal injuries or death resulting from any vehicle accident and $50,000 for the same outcomes for two or more persons.

What Are the Penalties for Not Having Auto Insurance?

Drivers may have their vehicle registration suspended if liability insurance is not purchased. In addition, a denial or delay of registration may take place unless proof is provided to the DMV. Drivers are also subject to criminal penalties if the DMV sends a Notice of Suspension of Registration letter and the registration and license plate are not returned to the agency.

What If I Live Out Of State but My Vehicle Is Registered in New Mexico?

You will still need auto insurance. You must submit a signed Affidavit of Non-Use/Out-Of-State Insurance to the New Mexico Insurance Identification Database (IIDB). Proof of current insurance, as well as of out-of-state residency, must also be provided.

How Long Until My Registration Is Reinstated?

Reinstatement typically takes one business day after submitting proof of auto insurance to the IIDB. After waiting at least 24 hours following your insurance carrier updating the information, you can go to a DMV field office to reinstate your registration, which costs $30.

Why Did I Receive a Notice of Suspension of Registration Letter?

There are a few reasons why you may have received the letter. These include not having insurance with a company licensed to do business in New Mexico. The recipient’s vehicle identification number (VIN) may be listed incorrectly in the IIDB.

Driving without auto insurance is a risk not worth taking. Besides having to pay for costly damages out of pocket, the financial penalties and time to reinstate vehicle registration can be expensive and significant.

Alcorn Insurance Agency is a trusted source for coverage designed around your unique driving needs. As an independent insurance agency, the team can shop around for the best rates from some of the nation’s leading carriers. For free auto insurance quotes, call (575) 756-2197 or stop by the Rio Arriba County, NM, office. You can also get a quote by visiting the company’s website.