Answer:
No, uninsured/underinsured motorist (UI/UM) coverage is not required of New Mexico residents. The Mandatory Financial Responsibility Act prohibits anyone from operating an uninsured motor vehicle. However, the Insurance Research Council (IRC) estimates that 21.6 percent of NM drivers are uninsured, one of the highest in the nation, meaning that you may want to consider a UI/UM policy for added protection.
The Mandatory Financial Responsibility Act is enacted under NMSA § 66-5-205 and available on the NM Compilation Commission’s website.
In This Article
An experienced Las Vegas, New Mexico personal injury attorney discusses UI/UM laws, including:
- How Many Drivers Are Uninsured in New Mexico?
- What Is the Penalty for Driving Without Insurance in New Mexico?
- How Much Does a UI/UM Coverage Policy Cost in New Mexico?
- Do You Need a Lawyer to File a UI/UM Claim?
What Happens If the At-Fault Driver Has No Accident Insurance in NM?
It is challenging to get compensation when an at-fault driver has no insurance in New Mexico. You basically have two options: 1) File a claim under your UI/UM policy, or, if you do not have one, 2) Sue the at-fault driver personally in civil court. However, in most cases suing them directly is tough since there is most likely no way to recover any money.
Important: Uninsured Driving Can Physically and Financially Ruin Lives
Uninsured driving can ruin lives by sticking the injury victim with medical bills, lost wages, and mental anguish that they did not create. Many people call law firms after an uninsured motorist causes an accident injury where the injury victim has no UI/UM insurance. However, they usually find themselves even more frustrated by the end of the call since they typically find out that many do not take on unrecoverable cases.
Did You Know…
…the average payout for uninsured motorist injuries is $32,879?
Forbes Magazine, 2022
Why Many Injury Lawyers Cannot Help Without Some Type of Insurance
This is, understandably, an upsetting position for anyone to endure. However, there is nothing a personal injury lawyer can do when there is no way to recover financial damages. We put a lot of our own resources into pursuing a case without ever asking for any form of upfront payment, predicated on the idea that we can help the client, recover our own expenditures and a reasonable profit for our work.
Without that reassurance, we would end up paying for depositions, investigations, expert witnesses, and more out of our own pockets and possibly lose tens of thousands of dollars in the process. Those forms of evidence are NECESSARY to win most cases.
Related Article: What to Do When an Uninsured Motorist Injures You in New Mexico
How Many Drivers Are Uninsured in New Mexico?
There are approximately 325,000 uninsured drivers in New Mexico.
The IRC estimates that 21.6 percent of New Mexicans are uninsured. The National Highway Traffic Safety Administration (NHTSA) shows that there are 1,502,950 licensed drivers. These figures were used to approximate our findings.
You can review the IRC report here and download a PDF copy of the NHTSA report here for more information.
What Is the Penalty for Driving Without Insurance in New Mexico?
The general penalty for driving without insurance includes up to $300 in fines or 90 days in jail or both per NMSA § 66-8-7. New Mexico’s Mandatory Financial Responsibility Act classifies uninsured driving as a misdemeanor.
You should speak with a criminal defense lawyer in New Mexico if you get a no-insurance ticket. They can help you identify a defense strategy that fights for the best possible outcome.
Is New Mexico a No-Fault Insurance State?
No, New Mexico does not follow a no-fault insurance system. Instead, it follows an at-fault insurance system, meaning that you file a claim against the party who caused the accident. If the at-fault party does not have motor vehicle insurance, then you would need to file a claim against your UI/UM policy.
Related Article: Is New Mexico an At-Fault Insurance State?
How Much Does a UI/UM Coverage Policy Cost in New Mexico?
Insurance.com states that the average UI/UM policy costs around five percent of your total premium. For instance, if your annual premium is $1,500, you will pay $75 for your UI/UM policy. This policy will protect you in the event that an uninsured or underinsured motorist or hit-and-run driver damages your vehicle and/or bodily harm.
Do You Need a Lawyer to File a UI/UM Claim?
No law requires you to hire a lawyer for a UI/UM claim. However, you may want to hire one if you suffered from serious accident injuries that caused you significant pain, suffering, to miss time at work or the loss of a family member. You may not need a personal injury lawyer for a UI/UM claim if the case is minor or you are satisfied with the settlement being offered by the adjuster. Even then, you may benefit from at least consulting with an attorney prior to accepting a quick settlement.
Get Help with an Uninsured Motorist Injury Claim in New Mexico
Is your UI/UM insurance provider offering you a subpar settlement? If so, the legal team at Grano Law Offices, P.C. can help at no upfront cost or obligation to you. Get in touch with us for a Free Case Evaluation now by calling (505) 426-8711 or message us directly via the contact form below.
WE DON’T GET PAID UNTIL YOU WIN YOUR CASE AGAINST THE INSURANCE COMPANY!
