Uninsured vs. Underinsured Motorist Coverage in New Mexico

By the FigureMyTax Editorial Team · How we calculate

New Mexico requires uninsured motorist coverage, and it must include underinsured coverage. An underinsured driver is one whose liability limits are less than your UM limits. The statute does not say how the payment is calculated.

One coverage

NMSA 66-5-301(B) says the uninsured motorist coverage shall include underinsured motorist coverage, and defines an underinsured motorist as one for whom the sum of the liability limits applicable at the time of the accident is less than the limits of your UM coverage.

How it pays

The statute does not say whether UIM pays on top of the other driver's limits or only the shortfall, so the calculator shows both readings. Your policy wording controls; ask your insurer in writing.

Rejection

The named insured may reject the coverage. Courts have read UM into a policy where the insurer did not obtain a valid rejection, so a rejection that was not clear and in writing may not hold; ask an attorney.

Fault and damages

New Mexico applies comparative fault to injury claims, with several rather than joint liability among defendants in most cases (NMSA 41-3A-1). The general comparative fault rule comes from court decisions that we did not read. There is no no-fault threshold for pain and suffering.

Deadlines and next steps

Most injury actions must be brought within 3 years (NMSA 37-1-8). Your policy may set other deadlines for a claim against your own insurer. See our statute post and the stacking explainer, then use the New Mexico UM/UIM stacking calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how New Mexico's rules apply to your specific case with a licensed New Mexico attorney.