Understanding Uninsured/Underinsured Motorist Insurance in New Mexico from Our Albuquerque Auto Accident Lawyer
New Mexico law requires all motorists to obtain and maintain auto insurance for their motor vehicle. While most car owners and drivers do that, unfortunately far too many do not. In fact, it is a big problem in New Mexico. According to the Insurance Information Institute (iii), New Mexico is the third worst state for uninsured motorists with almost 21% not having the proper insurance. This is a staggering figure because it leaves the rest of us on the road exposed in an auto accident. This is why uninsured/underinsured motorist insurance in New Mexico is important to protect you and your family.
Our auto accident lawyer in Albuquerque, NM explains what uninsured/underinsured motorist insurance in New Mexico is and how it can help your family after a catastrophic motor vehicle crash. We recommend that you get a minimum of $200,000 but preferable $400,000-$500,000 if you can afford it. Why? Find out below.
What is Uninsured/Underinsured Motorist Insurance in New Mexico?
Also known as UM/UIM, uninsured/underinsured motorist coverage is a type of insurance that is required in New Mexico under NM Stat. 66-5-301 in addition to a liability policy. But besides being required, every motorist in every state should have some UM/UIM coverage. The reason why is because these types of coverage plans cover lapses in insurance to ensure that you and your family are protected in the case of serious personal injuries.
For example, if the at fault driver who harmed you has no insurance and is uninsured, you could be out of luck for your medical bills. But if you have $50,000 in UM coverage, you are not protecting you and your family during an incident with this coverage.
In another example, if the defendant has the minimum of $25,000 in insurance but your injuries are $75,000, if you have no UIM policy you will not be able to cover the $50,000 in other bills or expenses. But if you have a UIM for $100,000, the first $25,000 would be paid by the defendant. That is subtracted from your $100,000 policy meaning you have $75,000 left in coverage. The remaining $50,000 in damages could be paid from that $75,000, meaning you would not have any damages.
Get as Much UM/UIM As You Can Afford
The minimum that is required is $25,000, which is the same as liability meaning that this will only cover you if you have been injured by a motorist who is not insured. But in realty, all motorists should have a much higher policy. This is to protect you if you have been injured and your medical bills exceed the policy. That prevents you from having out of pocket expenses if you have a big UM/UIM.
But the more coverage that you have, the higher that your premiums may be. This means that you will face more monthly payments that are higher. So it is important for a family to determine how much compensation they should acquire in a situation like this by balancing the costs of it per month versus the risks of not being insured.
Injured by an Uninsured or Underinsured Motorist? Call the Caruso Law Offices, P.C.
If you or a loved one were seriously injured an auto accident occurring in New Mexico, ask our experienced auto accident lawyers at the Caruso Law Offices, P.C. for a FREE consultations to learn how you can be protected under NM law. Families can rely on our proven track record of success to ensure that they get what they deserve.
Call for a FREE consultation by dialing (505) 883-5000 for your consultation. We handle causes throughout New Mexico, including Las Cruces, Santa Fe, Roswell, Cuervo, Rio Rancho, Clovis, Farmington, Hobbs, Albuquerque where our office is located, and anywhere else throughout New Mexico. Please call to schedule for FREE appointment by dialing (505) 883-5000 or contact us through our website’s easy to use and convenient contact box available here.