The legislature is aware that motor vehicle accidents in New Mexico can result in catastrophic financial hardship. The purpose of the Mandatory Financial Responsibility Act is to require residents of New Mexico who own and operate motor vehicles upon the highways of the state either to have the ability to respond in damages to accidents arising out of the use and operation of a motor vehicle or to obtain a motor vehicle insurance policy.
History: Laws 1983, ch. 318, § 2; 1998, ch. 34, § 4.
The 1998 amendment, effective July 1, 1998, deleted "the state of" preceding "New Mexico" in two places; deleted "and encourage" following "require"; and inserted "either" and substituted "or to obtain a motor vehicle insurance policy" for "it is the intent that the risks and financial burdens of motor vehicle accidents be equitably distributed among all owners and opeartors of motor vehicles within the state".
The Mandatory Financial Responsibility Act does not render a vehicle owner vicariously liable for injuries caused by the owner's vehicle when driven by another. Maya v. GMC Corp., 953 F.Supp. 1245 (D.N.M. 1996).
Geographical coverage. — The Mandatory Financial Responsibility Act was primarily adopted in response to the legislative concern about motor vehicle accidents in this state. Nothing in the overall statutory scheme indicates that the legislature intended to mandate broader geographical coverage for uninsured motorist coverage than for other types of coverage. Dominguez v. Dairyland Ins. Co., 1997-NMCA-065, 123 N.M. 448, 942 P.2d 191, cert. denied, 123 N.M. 446, 942 P.2d 189.
Purpose of the act. — This section reflects the view that the required automobile liability insurance is for the benefit of the public generally, innocent victims of automobile accidents, as well as the insured. Allstate Ins. Co. v. Jensen, 1990-NMSC-009, 109 N.M. 584, 788 P.2d 340.
Legislative intent. — By enacting the financial responsibility laws, Sections 64-24-42 through 64-24-107, 1953 Comp. (similar to 66-5-201 to 66-5-239 NMSA 1978), the legislature intended to eliminate the financially irresponsible driver from the highways and to provide for the giving of security and proof of financial responsibility by owners and operators of motor vehicles. 1969 Op. Att'y Gen. No. 69-119.
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