New Mexico’s Rules for Rideshare Drivers: What You Need to Know

New Mexico’s Rules for Rideshare Drivers What You Need to Know

New Mexico has established clear rules for rideshare drivers (also known as Transportation Network Company, or TNC, drivers) under the “Transportation Network Company Services Act” (HB 168), which sets out requirements for eligibility, vehicle standards, insurance, and driver conduct. Here’s what you need to know:

Driver Requirements

Age and Licensing

Minimum Age: Drivers must be at least 21 years old.

Valid Driver’s License: A valid driver’s license is required. Temporary or out-of-state licenses may be accepted by some platforms, but always check with the specific company.

Background Check: All prospective drivers must pass a local and national criminal background check, including a review of the national sex offender registry and a driving history report.

Driving Record: Applicants cannot have more than three moving violations in the past three years, or any violation involving evading law enforcement, reckless driving, or driving on a suspended/revoked license. Drivers must not have a felony or certain misdemeanor convictions within the past seven years.

Conduct and Limitations

Zero Tolerance Policy: There is a strict zero tolerance policy for alcohol and drug use while driving.

Hours of Operation: Drivers cannot provide prearranged rides for more than 12 hours in any 24-hour period.

Independent Contractor Status: Rideshare drivers are classified as independent contractors, not employees.

Vehicle Requirements

Eligible Vehicles

Age Limits: Vehicle age requirements vary by city and rideshare company. For example, Lyft requires vehicles to be 2011 or newer in Las Cruces, Roswell, and Taos, and 2009 or newer in other cities. Uber generally allows vehicles up to 15 years old.

Type and Condition: Vehicles must have four doors, seat 5–8 people (including the driver), and not be a taxi, limousine, or salvage vehicle.

Inspection: Vehicles must pass a safety inspection by an ASE-certified mechanic or at a company-approved inspection site.

Documentation

Vehicle Registration and Insurance: Drivers must have valid vehicle registration and personal auto insurance.

Proof of Insurance: Drivers must carry both digital and physical proof of insurance at all times while logged into the rideshare platform.

Insurance Requirements

While Logged In: When a driver is logged into the rideshare app but not on a trip, minimum liability coverage of $50,000 per person, $100,000 per incident, and $25,000 for property damage is required.

While on a Trip: During a prearranged ride, minimum liability coverage increases to $1,000,000.

Uninsured/Underinsured Motorist Coverage: Required as per New Mexico law.

Insurance Provider: Either the driver or the TNC can provide the required insurance, but if the driver’s insurance lapses or is insufficient, the TNC must provide coverage.

Additional Rules

No Street Hails or Cash Payments: Rideshare drivers are prohibited from soliciting or accepting street hails and cannot accept cash payments.

No Commercial Vehicle Registration Required: Personal vehicles used for rideshare do not need to be registered as commercial vehicles or vehicles for hire.

Summary Table

Requirement Details
Minimum Age 21 years old
Driver’s License Valid license required
Background Check Local and national, including sex offender registry
Driving Record No more than 3 moving violations in 3 years; no serious offenses
Vehicle Age Varies by city and company (e.g., 2009–2011 or newer)
Vehicle Type 4 doors, 5–8 seats, not a taxi/limo/salvage
Vehicle Inspection Required by ASE-certified mechanic or company-approved site
Insurance (logged in) $50k/$100k/$25k liability, uninsured/underinsured required
Insurance (on trip) $1,000,000 liability
Hours of Operation No more than 12 hours in 24 hours
No Street Hails/Cash Prohibited
Independent Contractor Yes

New Mexico’s rideshare rules are designed to promote safety and clarity for both drivers and passengers, while distinguishing rideshare services from traditional taxi operations.

Sources:

  1. https://www.michaeljdoylelaw.com/legal-blog/2021/august/uber-lyft-accidents-in-new-mexico/
  2. https://ij.org/new-mexico-legalizes-uber-and-lyft/
  3. https://law.justia.com/codes/new-mexico/chapter-65/article-7/section-65-7-12/
  4. https://help.lyft.com/hc/en-us/all/articles/115013078428-New-Mexico-Driver-Information