No, New Mexico does not use a no-fault insurance system. Instead, it operates under a traditional fault-based system, meaning that the driver responsible for causing an accident is liable for the damages. In New Mexico, drivers are required to carry liability insurance to cover potential damages or injuries they may cause in an accident. This system allows the injured party to file a claim with the at-fault driver’s insurance company, seek compensation through their own insurance policy, or pursue a lawsuit to recover damages. Understanding New Mexico’s fault-based insurance system is crucial for drivers to ensure they have adequate coverage and know their rights in the event of an accident.