New Mexico requires that all vehicles carry liability insurance. However, despite our laws, many New Mexico drivers choose not to pay premiums and drive our streets without insurance. Problems arise when these individuals cause accidents.
Assuming the responsible driver does not have sufficient assets to cover the other person’s injuries, uninsured/underinsured motorist policies may provide a source of recovery for personal injury car accident victims. When a person is injured by an uninsured driver and has uninsured/underinsured motorist coverage, this part of the policy will act as if the responsible driver did, in fact, have insurance. Similarly, if the responsible driver has a minimum liability insurance policy and it is not enough to cover the full value of the injury, uninsured/underinsured coverage may be able to make up the difference.
Additional benefits of uninsured/underinsured coverage include possible coverage for hit and run accidents, drive-by shootings, and punitive damage claims. Finally, uninsured/underinsured policies with the same household may be able to be stacked, adding the policy limits together, to increase the total level of possible recovery.
If you believe you have uninsured/underinsured motorist coverage it is recommended that you contact a New Mexico injury attorney prior to settling any liability claim. Failure to obtain an uninsured/underinsured carrier’s sanction prior to settling the liability claim may waive the uninsured/underinsured coverage.