Car Accident No-Fault Rules in New Mexico in NM… | CGMIMM
Personal Injury · NM
Car Accident No-Fault Rules in New Mexico
New Mexico is a fault/tort state — at-fault drivers (and their insurers) are responsible for damages.
Published May 6, 2026
## Is New Mexico a no-fault state for car accidents?
When someone gets hurt in a car accident, who pays for the medical bills depends on what kind of state you're in. Every state falls into one of four categories.
### New Mexico's system
**Pure tort/fault state.** No PIP requirement (or it's an optional add-on). To recover, the injured driver sues the at-fault driver — proving fault and damages in the traditional way. Most states use this system.
## What PIP covers
When PIP applies (in no-fault, choice, or add-on states), it typically pays:
- **Medical expenses** — emergency room, hospital, doctor visits, physical therapy, prescriptions
- **Lost wages** — usually a percentage of your normal income, up to a cap
- **Replacement services** — costs of household tasks you can't do (childcare, lawn care, etc.)
- **Funeral expenses** in fatal cases
- **Survivor's benefits**
Each state caps these benefits, and the caps run from $5K (low end) to unlimited (Michigan's pre-2019 system).
## What PIP does NOT cover
- **Pain and suffering** — never paid by PIP; only by tort claim against at-fault driver
- **Property damage** — vehicle damage is handled by collision/property insurance, not PIP
- **Punitive damages**
- **Damages above the PIP cap** — the rest can be recovered in a tort claim if eligible
## When you can sue in a no-fault state
In no-fault states, you can step OUTSIDE the no-fault system and sue if your injuries cross the state's tort threshold. Two types of thresholds:
- **Monetary threshold** — your medical bills exceed a dollar amount (e.g., $4,000 in MN, $2,000 in MA)
- **Verbal threshold** — your injuries fall into a defined serious-injury category (death, dismemberment, fracture, permanent injury, significant disfigurement)
Some states use one, some use the other, and a few use both.
## Property damage works differently
Even in no-fault states, **property damage** (vehicle repair) is usually handled on a fault basis — you sue (or claim against) the at-fault driver's insurance for car repair. PIP/no-fault rules apply to bodily injury only.
## The reform landscape
No-fault systems have been heavily reformed in recent decades:
- **Connecticut** repealed no-fault in 1994
- **Colorado** repealed no-fault in 2003
- **Pennsylvania, New Jersey, Kentucky, DC** offer choice systems
- **Michigan** kept unlimited PIP from 1973 to 2019, when it added a tiered-choice system
- **Florida** has had multiple PIP reform attempts
The general direction has been to scale back no-fault — costs got hard to control with mandatory medical-only coverage.
## What you should do
Whether New Mexico is no-fault, fault, or somewhere in between, the immediate steps after a crash are the same: get medical care, document the scene, notify your insurance, and don't talk to the other driver's insurance company without a lawyer. The legal system gets technical — talk to a New Mexico car accident attorney before signing anything or accepting a settlement. Most offer free consultations and work on contingency.
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*This guide is general information about New Mexico law as of early 2026 and is not legal advice. No-fault and tort thresholds have many edge cases — particularly around what counts as a "serious injury" under each state's verbal threshold. Talk to a licensed New Mexico attorney about your specific situation.*
This guide is for general information only and does not constitute legal advice. Laws change and outcomes depend on your specific situation — talk to a licensed attorney before acting on anything you read here.