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Required minimum car insurance coverage

Before you buy car insurance in Massachusetts, you should learn about minimum MA car insurance requirements and why more coverage may be a better choice for some drivers. We provide average car insurance rates for your location so you can compare quotes and also outline Massachusetts auto insurance laws.

The average car insurance rate in Massachusetts is $1,302 a year. The severity and frequency of claims in your neighborhood, your driving record, the type of car you drive and other variables are used by insurance companies to figure out the cost of your policy. That’s why the price for the same coverage can vary significantly among insurance companies — and why you should compare rates. For example, in Boston area ZIP codes 02119, 02124 and 02121 the highest rate among six carriers is ($3,110) is three times as much as the lowest ($900). When shopping for car insurance, use our average car insurance rates tool to compare rates. Enter a ZIP code to see the average premium for your neighborhood. You will also see the highest and lowest rates from the six major carriers surveyed to get an idea of what the most affordable car insurance price is in your area.

Cheap car insurance in Massachusetts

Massachusetts car insurance requirements

State law requires the following coverages:
Minimum bodily injury liability $20,000/$40,000
Minimum property damage liability $5,000
Uninsured/underinsured motorist bodily injury $20,000/$40,000
Personal injury protection (PIP) $8,000

Your state's minimum car insurance requirements will be the cheapest coverage you can get. Massachusetts car insurance laws mandate that drivers carry minimum liability coverage limits of 20/40/5 on their vehicle. You must also have matching amounts of uninsured/underinsured coverage, and personal injury protection (PIP) limits of $8,000. In Massachusetts, PIP pays for the first $2,000 of your medical expenses, then your health insurance kicks in. If you don't have health insurance, PIP pays out up to the limits you bought, which must be at least $8,000.

Buying the state required limits to drive is definitely the cheapest way to go. Everyone likes to save money, but buying cheap car insurance in MA may not be the wisest option for many drivers. Your assets and savings are in jeopardy if you get into an accident and only have minimum coverage.

It does cost more to buy more protection, but as you’ll see in the chart below, additional coverage is typically affordable. Increasing your insurance from the state minimum to full coverage with a $1,000 deductible costs, on average, $812 more, or $68 a month.

Coverage limits Average annual rate
Liability Only – state minimum $866
Liability Only - 50/100/50 BI/PD $996
Full Coverage - 100/300/100 BI/PD
$1,000 Comp/Collision deductible
$1,678
Full Coverage - 100/300/100 BI/PD
$500 Comp/Collision deductible
$1,950
Full Coverage - 100/300/100 BI/PD
$250 Comp/Collision deductible
$2,088

*The table shows the average annual rate of 10 ZIP codes in the state from the following carriers, in no particular order: Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers. Data was provided for CarInsurance.com by Quadrant Information Services.

Recommended car insurance coverage

Buying cheap car insurance in MA may not be the wisest option for many drivers. This is because even a minor wreck can cost much more than what your minimal insurance will pay out. For instance, say you have Massachusetts’ minimum bodily injury of $20,000 and $5,000 in property damage. You then cause an accident that totals the other driver’s car, valued at $20,000. It also results in $45,000 of medical expenses for the other driver’s injuries. You’re responsible for damages not covered by insurance. That means you have to pay $25,000 for medical bills and $15,000 for the damaged car – a total of $40,000.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.

AGE STATE VEHICLE MODEL YEAR PRIMARY RESIDENCE OWN RENT VEHICLE FINANCING OWNED FINANCED LEASED

Liability

We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and comprehensive

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and broken glass and for damages from vandalism, flooding, hail, fire and animal strikes. These optional coverages are usually not budget-busters. Massachusetts drivers pay, on average, $361 a year for collision and $130 annually for comprehensive. If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

If you buy comp and collision, check our guide to choosing a deductible amount.

Uninsured/underinsured motorist

These coverages are required in Massachusetts and should match the liability limits you choose. Uninsured motorist coverage and underinsured motorist coverage pays for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, starting at $5,000 and up to $25,000. In most states, including Massachusetts, it's an optional addition to your car insurance policy. Because you are required to have PIP in Massachusetts, you likely don't need MedPay. That's because PIP provides coverage equal to -- and beyond -- MedPay, which does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

  • Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.

Gap insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.

Car insurance companies in Massachusetts

Scores are based on Insure.com’s “Best Insurance Companies” customer review survey of 3,700 customers. Companies not in the top 10 of market share do not qualify. All scores are out of 100.

Best car insurance companies in Massachusetts

Best customer service:

  1. Geico – 88.7
  2. Progressive – 88.4
  3. Liberty Mutual -- 86

Best claims service:

  1. Liberty Mutual – 96
  2. Geico –93.9
  3. Progressive – 92.5

Best value for the price:

  1. Progressive – 86.3
  2. Geico – 81.1
  3. Liberty Mutual – 80.4

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Largest car insurance companies in Massachusetts

Rank Company Name Direct premiums written Market share % Overall Customer Review Ranking
1 MAPFRE North America Group 1,128,776 24.24% n/a
2 Liberty Mutual Insurance Companies 616,186 13.23% 86.4
3 Safety Group 455,946 9.79% n/a
4 Arbella Insurance Group 432,117 9.28% n/a
5 Geico 374,566 8.04% 88.1
6 Plymouth Rock Companies 322,181 6.92% n/a
7 MetLife Auto & Home Group 211,214 4.54% n/a
8 Progressive Insurance Group 157,091 3.37% 89.6
9 Amica Mutual Group 137,809 2.96% n/a
10 Hanover Insurance Group Property & Casualty Companies 134,933 2.9% n/a

Source: A.M. Best market share rankings are based on direct premiums written in 2015.

Customer review rankings based on Insure.com's 2016 "Best Insurance Companies" survey of 3,700 customers. Scores are out of 100.

Massachusetts car insurance laws and resources

Proof of insurance and registering your car in Massachusetts

There are no car insurance cards issued in Massachusetts because your registration acts as proof of your policy. That means your car insurance company is part of the registration process. When you register a car for the first time, your car insurer begins by filling out, stamping and signing a form. This form is called the Application for Registration and Title (RMV-1). Once completed, your insurer sends it to the Massachusetts Registry of Motor Vehicles (RMV).

MA Safe Driver Insurance Plan (SDIP)

Massachusetts does not have a driver’s license points system. Instead, driving behavior is tracked with the point-based Safe Driver Insurance Plan (SDIP). The goal of SDIP is to reward safe drivers with low car insurance rates and to penalize those with at-fault accidents and traffic violations with higher rates.

Not every insurance company uses SDIP when determining car insurance rates. Massachusetts car insurance companies have the option of using the SDIP driver rating system or can use their own merit-rating system to set rates. All insurance companies are required under law to explain how discounts or increases to rates were made when applying merit-ratings to your policy. This is true regardless of whether the insurer uses SDIP or its own merit-rating system and can be found on the “Coverage Selection” page of your policy.

Here we explain how SDIP works for those who have insurers that use it to set rates. Your driving history is used to create your SDIP rating. You are given “surcharge” points for unsafe driving, but may get a discount if you are a safe driver. For instance, new drivers are automatically assessed higher premiums because they have no driving experience yet. Additionally, you will receive surcharge points for car accidents or traffic violations. On the other hand, experienced drivers with clean records are given discounts. SDIP discounts and increases count toward your liability and optional collision coverage.

The more surcharge points you have, the higher your car insurance rate will be. Surcharge points might be imposed if:

  • Your insurer deems you more than 50 percent at fault in an accident
  • Your insurer pays out more than $500 on an accident claim you file
  • You are convicted of a traffic violation
  • Pay a fine for a traffic violation
  • You are convicted of a DUI and required to take an alcohol education program

For more information, read the RMV page SDIP and Your Auto Insurance Policy. The MA RMV also provides a detailed outline of surchargeable incidents. If you have questions about SDIP, call a customer service representative at the merit rating board by calling 857-368-8100.

SDIP MA car insurance discounts

You may be able to save money on your MA car insurance with the following discounts if your insurer uses the SDIP system and you’re a safe driver:

  • Excellent Driver Discount Plus -- To qualify for this 17 percent discount, you must have six years of driving experience and no surcharges in the past six years.
  • Excellent Driver Discount -- To qualify for this 7 percent discount, you must have at least five years of driving experience with no surcharges in the past five years.
  • Excellent Driver Discount with one incident -- To qualify for this 7 percent discount, you must have at least five years of driving experience and only one surcharge for a minor traffic violation in the past six years that is at least three years old.

How much does a speeding ticket raise your rates?

If you get cited for speeding, your rates will go up 27 percent, on average, per year, according to an analysis of rates from six insurers for 10 ZIP codes in the commonwealth.

Credit and gender not a rating factor

Car insurance companies in Massachusetts are not allowed to factor in your credit information or gender when calculating your rates. Most states allow the practice.

Lemon and Lemon Aid laws

Massachusetts, like many states, has a Lemon Law regarding defects that consumers may find with their new or leased vehicles; however, it also has a unique Lemon Aid law.

The Lemon Aid law allows you to cancel or void a car sale or contract if your vehicle fails to pass inspection within seven days from the date of sale and the estimated repair costs of emissions or safety-related defects exceed 10 percent of the purchase price. This applies to dealer and private party sales of cars and motorcycles acquired for personal use.

Uninsured motorist penalties for Massachusetts

You may be fined $500, be sentenced to one year in jail and have your license suspended if convicted of driving without insurance.

Uninsured motorist bodily injury coverage is required in the state even though Massachusetts has the lowest uninsured motorist rate in the nation at 4 percent, according to the Insurance Research Council. For comparison, Oklahoma has the most uninsured drivers at 26 percent.

Source


Remember that there are other ways to save money and get more discounts on your car insurance, if you make sure you get all the discounts you are entitled to, and buy your insurance from a good car insurance company then you can afford more than the state minimum insurance.

What Do the Numbers Mean in the Minimum State Car Insurance Coverages?

Let us look at an example:

If your state minimum insurance requirements are 25/50/20. 

The first two numbers refer to bodily injury liability limits and the third number refers to the property damage liability limit.

The first two numbers in 25/50/20 mean that in an accident each person injured would receive a maximum of up to $25,000 with a maximum limit of $50,000 per accident.

To understand this better, imagine if two people needed $25,000, then the maximum of $50,000 per accident would be sufficient. However, what of three people were injured, needing $25,000 each. The minimum would not be sufficient. In a case like this, you could end up in a difficult situation where whoever files first could get first access to the $50,000 limit and you may be sued for the rest if the accident was your fault.

The last number refers to the total coverage per accident for property damage, which in this case would be $20,000.

Imagine if you hit the side of a house or an electrical pole, and the resulting damage exceeded $20,000. In this scenario, the minimum car insurance requirement might fall short and you could be sued for the difference.

Minimum Car Insurance Limits May Not Be Enough to Protect You

It is easy to see how these limits may not cover all the liability and property damage needs. Now that you understand what the numbers mean, check the listing of each state's minimum insurance requirements. Look up the state you live in to see if you feel comfortable with the minimum numbers.

It does not cost much more to raise your car insurance limits. Make sure you are adequately protected by contacting your insurance agent to discuss your options, choose a good car insurance company for your area, and find ways to save money on your auto insurance without putting your financial future at risk. 

Full List of Minimum Car Insurance Required By Law in Your State and Exceptions

Alabama 

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Alaska 

  • $50,000 bodily injury liability per person
  • $100,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Arizona

Arizona has a special condition around legal requirements to drive your car. All drivers must show financial responsibility. You do not have to have insurance, however, if you choose to not purchase insurance you will have to be ready to put up a $40,000 bond to prove you can pay for damages resulting from an accident. Naturally, for most people, buying the minimum car insurance makes a lot more financial sense. Here are the Arizona minimum requirements if you choose to purchase insurance instead of put up a bond:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Arkansas

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

California

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $5,000 property damage liability per accident

Colorado

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

Connecticut

  • $20,000 bodily injury liability per person
  • $40,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $20,000 uninsured/underinsured motorist coverage per person
  • $40,000 uninsured/underinsured motorist coverage per accident

Delaware

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

Florida

  • $10,000 property damage liability per accident
  • $10,000 personal injury protection

Georgia

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Hawaii

  • $20,000 bodily injury liability per person
  • $40,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $10,000 personal injury protection

Idaho

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

Illinois

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $20,000 property damage liability per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident

Indiana

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

Iowa

  • $20,000 bodily injury liability per person
  • $40,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

Kansas

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured/underinsured motorist coverage per person
  • $50,000 uninsured/underinsured motorist coverage per accident

Personal injury protection ($4,500 in medical expenses, up to $900 per month for disability or loss of income, $25 per day for in-home services,$4,500 for rehabilitation, $2,000 for funeral burial or cremation costs)

Kentucky

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $10,000 personal injury protection

Louisiana

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Maine

  • $50,000 bodily injury liability per person
  • $100,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $50,000 uninsured motorist coverage per person
  • $100,000 uninsured motorist coverage per accident
  • $2,000 medical payments coverage

Maryland

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

Massachusetts

  • $20,000 bodily injury liability per person
  • $40,000 bodily injury liability per accident
  • $5,000 property damage liability per accident
  • $20,000 uninsured motorist coverage per person
  • $40,000 uninsured motorist coverage per accident
  • $8,000 personal injury protection

Michigan

  • $20,000 bodily injury liability per person
  • $40,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

Personal injury protection (unlimited) Michigan offers no-fault insurance with mandatory coverages 
$1 million property protection (PPI). PPI pays up to $1 million for damage your vehicle does in Michigan to other people's property, such as buildings and fences.

Minnesota

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured/underinsured motorist coverage per person
  • $50,000 uninsured/underinsured motorist coverage per accident
  • $40,000 personal injury protection

Mississippi

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Missouri

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident

Montana

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

Nebraska

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident

Nevada

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

New Hampshire

Car insurance is not mandatory in New Hampshire. There is no minimum car insurance requirement for the State of New Hampshire, however, state law does require you to pay for any bodily injury or property damage arising from your operation of a vehicle that you own.

So, although there is no law forcing you to purchase auto insurance in New Hampshire, there is a law which will hold you responsible for paying for damages. You should purchase at least the minimum car insurance to protect yourself and your family.

These are the minimum car insurance limits available when you do decide to purchase insurance:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $25,000 uninsured/underinsured motorist coverage per person
  • $50,000 uninsured/underinsured motorist coverage per accident
  • $25,000 uninsured/underinsured motorist property damage coverage
  • $1,000 medical payments coverage

New Jersey

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $5,000 property damage liability per accident
  • $15,000 personal injury protection

New Mexico

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

New York

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $50,000 liability for death per person
  • $100,000 liability for death per accident
  • $10,000 property damage liability per accident
  • $50,000 personal injury protection
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident

North Carolina

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $30,000 uninsured motorist coverage per person
  • $60,000 uninsured motorist coverage per accident
  • $25,000 uninsured motorist property damage coverage per accident

North Dakota

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $25,000 uninsured/underinsured motorist coverage per person
  • $50,000 uninsured/underinsured motorist coverage per accident
  • $30,000 personal injury protection

Ohio

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Oklahoma

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Oregon

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $20,000 property damage liability per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident
  • $15,000 personal injury protection

Pennsylvania

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $5,000 property damage liability per accident
  • $5,000 medical benefits

Rhode Island

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

South Carolina

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident
  • $25,000 uninsured motorist property damage coverage

South Dakota

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $25,000 uninsured/underinsured motorist coverage per person
  • $50,000 uninsured/underinsured motorist coverage per accident

Tennessee

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

Texas

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Utah

  • $25,000 bodily injury liability per person
  • $65,000 bodily injury liability per accident
  • $15,000 property damage liability per accident
  • $3,000 personal injury protection

Virginia

Virgina has special conditions around car insurance. You do not necessarily have to buy car insurance, according to the DMV, Virginia law requires that all drivers have a way to pay for injuries or property damage resulting from a car accident. Minimum car insurance is one way to meet this requirement. These are the Virginia minimums:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $20,000 property damage liability per accident

Vermont

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $50,000 uninsured/underinsured motorist coverage per person
  • $100,000 uninsured/underinsured motorist coverage per accident
  • $10,000 uninsured/underinsured motorist property damage coverage per accident

Washington

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

Washington D.C.

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured/underinsured motorist coverage per person
  • $50,000 uninsured/underinsured motorist coverage per accident
  • $5,000 uninsured/underinsured motorist property damage coverage per accident

West Virginia

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident
  • $25,000 uninsured motorist property damage coverage

Wisconsin

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $10,000 property damage liability per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident

Wyoming

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $20,000 property damage liability per accident 

Source


The New Mexico MVD contracts with PASCO Inc. using their Validati® application to match auto insurance information from New Mexico insurance companies with vehicles registered with the MVD.

PASCO developed a New Mexico Insurance Identification Database (IIDB) at www.driveinsured.com. The IIDB website has information for New Mexico drivers about insurance notification letters and insurance verification.

In New Mexico, drivers are expected to operate their motor vehicles with a minimum of liability auto insurance. Minimum auto liability insurance amounts required in New Mexico are:

  • $25,000 for bodily injury to or death of one person,
  • $50,000 for bodily injury to or death of two or more persons, and
  • $10,000 for property damage in any one accident.

Once you have purchased auto insurance for at least the minimum amounts above, ask your insurance company to provide your insurance information to the New Mexico IIDB at: www.driveinsured.com or to call (866) 891-0665.

If you receive a Notice of Noncompliance from the MVD, but you have the minimum required liability insurance, you should contact your insurance company immediately. Ask them to provide your insurance information to the IIDB.

If your insurance company does not provide your insurance information to the IIDB within 30 days of the date on the Notice of Noncompliance you received, your vehicle(s) registration will be suspended by the MVD.

You can call the IIDB yourself and provide the necessary information. Drivers who provide fraudulent proof of insurance documents may be prosecuted according to the State of New Mexico's statutes.

Registration of your vehicle(s) may be denied or delayed if the New Mexico MVD Registration file does not show insurance coverage for the vehicle(s). Drivers that do not have minimum liability auto insurance may have their vehicle registration suspended.

Forms of Proof of Insurance to take to MVD when registering your vehicle:

  • A current auto insurance card.
  • A copy of your current auto insurance policy.
  • A letter from your auto insurance company (on company letterhead) that verifies your auto insurance coverage.

You must provide any one of the above forms of proof to the MVD before you can register your vehicle(s).

Affidavit of Non-use of Vehicle or Out-of-State Insurance (MVD-11268) | Download PDF
Financial Responsibility Request for Hearing (MVD-10792) | Download PDF

Mandatory Auto Insurance FAQs

What is "Mandatory Insurance?"
Why isn't my insurance on file? I provided it at the time I registered my vehicle.
What happens if I don't get insurance?
Why did I receive a notice that my registration was suspended?
I have automobile insurance and received a Verification of Mandatory Automobile Insurance letter by mistake. What do I need to do?
How can I reinstate my vehicle registration?
When I provide proof of insurance, when will my registration be reinstated?
I don't have automobile insurance. What do I need to do?
My vehicle is covered under a fleet or commercial policy. What do I need to do?
The VIN on my insurance policy does not match the VIN on my vehicle. What do I need to do?
The VIN on the registration does not match the VIN on my vehicle. What do I need to do?
My vehicle is registered in New Mexico, but I am living out-of-state because I'm in the military, working out-of-state, or away attending school. Do I still need to have insurance coverage for my vehicle?
Will my out-of-state insurance be acceptable in New Mexico?
My vehicle is being restored or in storage, and I cancelled my insurance. What do I need to do so my registration is not suspended?
I no longer own the vehicle. Do I need to contact anyone to let them know?

What is "Mandatory Insurance?"

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
  • $50,000 for bodily injury to or death of two or more persons in any one accident
  • $10,000 for injury to or destruction of property of others in any one accident

Or, if evidence is in the form of a surety bond or a cash deposit, the total amount shall be $60,000 on deposit with the New Mexico State Treasurer.

Why isn't my insurance on file?

I provided it at the time I registered my vehicle.
With the development and implementation of the New Mexico Insurance Identification Database (IIDB), the State no longer relies upon insurance information it may have collected at the time of vehicle registration. Your insurance company must report your insurance information electronically for your vehicle to be identified as insured on the IIDB. Once reported, your vehicle's registration should be updated the following business day.

What happens if I don't get insurance?

Vehicles that do not have the minimum liability insurance are subject to having that vehicle registration suspended. Registration of your vehicle(s) may be denied or delayed until insurance is obtained. The New Mexico Mandatory Financial Responsibility Act states that an owner of an uninsured vehicle must return the vehicle registration and the license plate to the MVD within ten days of receiving the Notice of Suspension of Registration letter. If the owner does not do so, the owner will be subject to the penalties prescribed by law, including criminal penalties.

Why did I receive a notice that my registration was suspended?

The New Mexico Insurance Identification Database (IIDB) identified your vehicle as not having insurance through a New Mexico licensed insurance company. You were sent a Verification of Mandatory Automobile Insurance letter 30 days before you received the Notice of Suspension of Registration, advising you of this fact and requesting you to work with your insurance agent or company to provide the IIDB with the needed proof of insurance.

You may not show as insured on the IIDB for a number of reasons, such as: the vehicle does not have insurance coverage; the vehicle is insured by an insurance company not licensed to do business in the State of New Mexico; the insurance company has not properly reported insurance coverage for the vehicle; or the vehicle identification number (VIN) may be incorrect on the MVD’s records.

I have automobile insurance and received a Verification of Mandatory Automobile Insurance letter by mistake. What do I need to do?

If you currently have insurance on the vehicle(s) listed on the Verification of Mandatory Automobile Insurance letter, you should:

  • Contact your insurance company to make sure that the information on your insurance policy matches the information listed on your vehicle(s) registration.
  • Make sure that your vehicle is covered by a New Mexico policy.
  • If your vehicle is covered by a fleet or commercial policy that is not vehicle specific, then you will need to contact your insurance company. Give them the name that is listed on the letter you received from the New Mexico Insurance Identification Database (IIDB) and the vehicle information. Ask them to contact the IIDB so the vehicle will be listed as insured under a commercial policy.

How can I reinstate my vehicle registration?

Obtain adequate insurance and have your insurance agent update your insurance information on the New Mexico Insurance Identification Database (IIDB) web site www.driveinsured.com or contact the IIDB Call Center toll free (866) 891-0665 for more information. After proof of insurance has been received by the IIDB, your vehicle registration should be eligible for reinstatement the following business day. The reinstatement fee for a suspended registration is $30.00.

When I provide proof of insurance, when will my registration be reinstated?

After proof of insurance has been received electronically by the New Mexico Insurance Identification Database, your vehicle registration should be eligible for reinstatement the following business day. Please wait a minimum of 24 hours from when your insurance agent updates the database, before going to a MVD Field Office to reinstate your vehicle registration. The reinstatement fee for a suspended registration is $30.00.

I don't have automobile insurance. What do I need to do?

You must obtain automobile liability insurance from an insurance company that is licensed to do business in the State of New Mexico. Once you obtain insurance, your insurance company will electronically notify the New Mexico Insurance Identification Database of your coverage.

My vehicle is covered under a fleet or commercial policy. What do I need to do?

If your vehicle is covered by a fleet or commercial policy that is not vehicle specific, then you will need to contact the fleet policy insurance company. Give them the name that is listed on the Verification of Mandatory Automobile Insurance letter you received from the New Mexico Insurance Identification Database (IIDB) and the vehicle information. Ask them to contact the IIDB so the vehicle will be listed as insured under a commercial policy.

The VIN on my insurance policy does not match the VIN on my vehicle. What do I need to do?

If the VIN on the insurance policy does not match the VIN on the vehicle, you will need to contact your insurance company and give them the correct VIN to update their records. The insurance company then may provide temporary proof of insurance through the web site and should report the correct policy information electronically to the New Mexico Insurance Identification Database.

The VIN on the registration does not match the VIN on my vehicle. What do I need to do?

If the VIN on your vehicle is different from what is on your registration, then you will need to have the title and registration corrected.

If you live in New Mexico:

  • Take the vehicle, title and registration to a local MVD Field Office for a VIN inspection.
  • Once you receive your VIN inspection, you will need to contact the MVD at (505) 383-2315.

If you live outside New Mexico:

  • Get a VIN inspection by a State Police Officer in the state in which you are residing.
  • Then, mail the VIN inspection, a copy of your registration and the original title, and a written request to change the VIN. Include your phone number so you can be contacted.

Mail to: MVD Financial Responsibility Section; 505 Marquette NW, Suite 1500; Albuquerque, NM 87102.

My vehicle is registered in New Mexico, but I am living out-of-state

because I'm in the military, working out-of-state, or away attending school. Do I still need to have insurance coverage for my vehicle?
Yes. In order to be verified as insured you must submit to the New Mexico Insurance Identification Database (IIDB) a signed, completed Affidavit of Non-Use/Out-of-State insurance. You will be asked to provide proof of insurance and proof of your out-of state residency.

Your vehicle will then be identified on the database as insured for the term of your policy. You will need to submit an Affidavit of Non-Use/Out-of-State insurance each time you renew that policy with an out-of-state insurance provider as long as your vehicle registration remains in New Mexico. Please click on the link below for an electronic version of the Affidavit of Non-Use/Out-of-State Insurance. You may print this form, complete it, sign it and mail it to the IIDB with the required documents. You may also obtain this form at any New Mexico MVD office.

Affidavit of Non-Use/Out-of-State Insurance (MVD-11268) | Download PDF

If you drive the vehicle and it is not insured, you are subject to license plate confiscation and a citation for no proof of insurance. Make sure that when you drive the vehicle in New Mexico, you have proof of automobile liability insurance in your possession.

Mail to: NM IIDB; P.O. Box 30147 Albuquerque, NM 87190-0147 or call (866) 891-0665 with any questions.

Will my out-of-state insurance be acceptable in New Mexico?

Yes. Out-of-state insurance is acceptable in New Mexico, but it must meet New Mexico's minimum liability requirements:

  • $25,000 for bodily injury or death to one person in any accident, subject to this limit for one person
  • $50,000 for bodily injury to or death of two or more persons in any one accident
  • $10,000 for injury to or destruction of property of others in any one accident

You must submit to the New Mexico Insurance Identification Database (IIDB) a signed, completed Affidavit of Non-Use/Out-of-State insurance.You will be asked to provide proof of insurance and proof of your out-of-state residency.

Your vehicle will then be identified on the database as insured for the term of your policy. You will need to submit an Affidavit of Non-Use/Out-of-State insurance each time you renew that policy with an out-of-state insurance provider as long as your vehicle registration remains in New Mexico. Please click on the link below for an electronic version of the Affidavit of Non-Use/Out-of-State Insurance. You may print this form, complete it, sign it and mail it to the IIDB with the required documents. You may also obtain this form at any New Mexico MVD office.

Affidavit of Non-Use/Out-of-State Insurance | Download PDF

If you drive the vehicle and it is not insured, you are subject to license plate confiscation and a citation for no proof of insurance. Make sure that when you drive the vehicle in New Mexico, you have proof of automobile liability insurance in your possession.

Mail to: NM IIDB; P.O. Box 9700; Albuquerque, NM 87119-9700 or call (866) 891-0665 with any questions.

My vehicle is being restored or in storage, and I cancelled my insurance.

What do I need to do so my registration is not suspended?
If you cancel your insurance for the period of time your vehicle is not being driven, you must submit to the New Mexico Insurance Identification Database (IIDB) a signed, completed Affidavit of Non-Use/Out-of-State Insurance of this vehicle. Your registration will be reflected as unknown for insurance status purposes, but you will incur no penalty as long as you do not drive the vehicle on New Mexico roads. You must complete the Affidavit at least annually.

Prior to driving this vehicle on New Mexico's roads you must obtain adequate insurance and have your insurance agent update your insurance information on the program web site,www.driveinsured.com, or contact the IIDB Call Center at the toll free number (866) 891-0665 for more information. Once your insurance information has been updated, your vehicle should be in the IIDB and identified as insured. If you take no action on the Suspension of Registration letter you receive from the IIDB and your vehicle registration is suspended, you must purchase insurance, have it reported to the IIDB, and you must reinstate the registration for your vehicle. The reinstatement fee for a suspended registration is $30.00.

I no longer own the vehicle. Do I need to contact anyone to let them know?

Yes. If you no longer own the vehicle, please indicate this on the Verification of Mandatory Automobile Insurance letter, sign and date the letter, and mail it to the MVD Financial Responsibility Section at 505 Marquette NW Suite 1500 Albuquerque, NM 87102. If you have additional questions or need more information, please contact the New Mexico Insurance Identification Database at (866) 891-0665.

If you wish to request a mandatory auto insurance hearing to protest your registration suspension, you may download an application here or visit a MVD Field Office to request the application form. You must submit this application by mail or in person to the MVD within twenty (20) days of the date of the mailing of the Notice of Noncompliance.

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