New Mexico Motorcycle Insurance Requirements

New Mexico’s motorcycle insurance requirements are set forth in the state’s Mandatory Financial Responsibility Act. The requirements are fairly straightforward and you need not spend a lot to get basic coverage for your bike. As with anything else you buy, shop around. Get quotes from a variety of providers and compare premiums.

What Amounts Does New Mexico’s Mandatory Financial Responsibility Act Require for Motorcycle Insurance?

Option 1:

• $25,000 bodily injury or death one person one accident
• $50,000 bodily injury or death more than one person one accident
• $10,000 property damage or destruction one accident

Option 2:

$60,000 in the form of a surety bond from a surety company authorized to do business in New Mexico

Option 3:

A cash deposit of $60,000 made with the state treasurer.

These liability insurance minimums protect you against claims made by other drivers. Note that if you choose to deposit a surety bond or cash that you must settle the claim yourself.

What’s the Definition of a Motorcycle Under New Mexico Law?

The definition of a motorcycle is fairly standard: a motor vehicle with a seat or saddle for the rider designed to travel on no more than three wheels.

The definition of a moped is also fairly standard: a two or three-wheeled vehicle with an engine of less than 50cc that can go no more than 30 miles per hour.

In either case, you need to be insured. If the vehicle has to be registered, you have to be in compliance with the Mandatory Financial Responsibility Act.

Are There Any Other Motorcycle Insurance Requirements?

There’s a requirement for insurance companies. They must offer you uninsured motorist coverage as well. Uninsured motorist coverage allows you to recover damages from another driver who is at fault but was driving without insurance. You have the right to reject uninsured motorist coverage if you choose.

Are Other Types of Motorcycle Insurance Coverage Available in New Mexico?

Yes. Typical coverages include:

• Coverage for physical damage to your motorcycle, such as collision or comprehensive coverage
• Medical payments coverage to compensate you for injuries you suffer during an accident

You can also ask your insurance broker or agent about less common types of coverage for your motorcycle, such as rental car reimbursement if your motorcycle is your primary mode of transportation.

Does New Mexico Monitor My Motorcycle Insurance?

Yes. New Mexico requires insurance companies to report when they cancel or issue motorcycle insurance. Companies have to make these reports every month. The state government then keeps that information on file with the vehicle record for a year.

If the state gets information from your insurance company that your policy has been canceled or terminated, it then demands satisfactory evidence from you that you are in compliance with the Mandatory Financial Responsibility Act. You have 20 days to respond. If you’re not in compliance with the act, you can be found guilty of a misdemeanor and fined up to $300.

New Mexico also has a sampling program under which it periodically mails a form to registered owners of vehicles asking them to affirm that they comply with the Act. You have 15 days to respond.

What Happens If I Violate the Mandatory Financial Responsibility Act?

In addition to the $300 fine, your motorcycle registration is suspended until you meet the requirements of the Act. The same penalties apply if you falsely claim that you have insurance when you don’t.

If you don’t return your registration when required to do so because of failure to comply with the Mandatory Financial responsibility Act, you’ll be fined up to $1,000 and you could go to jail for 6 months. If you forge evidence of financial responsibility, you’ll be subject to the $1,000 fine and you could be imprisoned for up to a year.

How Do I Show Evidence of Compliance with the Mandatory Financial Responsibility Act?

New Mexico law doesn’t specify what constitutes proof of compliance. Because New Mexico keeps a database of insurance information, verifying insurance is relatively easy. In general, a current insurance ID card will do the trick as long as it contains the name of the insurance company and the policy number. If you don’t have an insurance ID card, other written evidence that provides the policy number and the insurance company name should suffice. Note that when you register your motorcycle, you affirm by your signature that you comply with the law.

If you chose not to get insurance and deposited a surety bond or cash, then you’ll want to keep a receipt or other evidence of compliance with you when you ride.

Other Things to Know:

Your insurance company is legally obligated to list the coverage you have purchased, the premium charged, the policy period, and the limits of your liability coverage. It is also required to indicate that your policy complies with the Mandatory Financial Responsibility Act.