Uninsured and Underinsured Drivers in New Mexico: What Are Your Options?

Car accidents are stressful enough, but the situation becomes even more complicated when the at-fault driver doesn’t have insurance or doesn’t carry enough to cover your damages. Unfortunately, this is a common issue in New Mexico, where rates of uninsured drivers are among the highest in the country.

At VOZH Law, we help injury victims navigate these challenges and secure fair compensation despite limited or missing coverage. Here’s what you need to know if you find yourself in this situation.

Why Uninsured and Underinsured Coverage Matters

According to the Insurance Information Institute, New Mexico consistently ranks near the top for uninsured drivers, with over 20% of motorists lacking coverage. This means that if you’re in a crash, there’s a significant chance that the other driver may not have enough insurance, or any at all, to pay for your medical expenses, lost wages, and property damage.

That’s where Uninsured/Underinsured Motorist (UM/UIM) coverage comes in. This part of your auto policy is designed to protect you when the other driver’s insurance isn’t sufficient.

Why is This Problem So Common in New Mexico?

High uninsured rates in New Mexico are linked to a few key factors:

• Economic hardship makes it difficult for many drivers to afford coverage.
• Large rural areas mean some drivers risk going uninsured, assuming they won’t be caught.
• Enforcement challenges make it harder to keep uninsured drivers off the roads.

For accident victims, this reality means protecting yourself through UM/UIM coverage is not optional; it’s essential.

Understanding the Difference Between UM and UIM Coverage

Uninsured Motorist (UM) coverage applies when the at-fault driver has no insurance at all. For example, if you’re hit by a driver who never purchased liability insurance, your UM coverage would help pay your medical bills and other damages.

Underinsured Motorist (UIM) coverage applies when the other driver’s policy exists, but isn’t enough. Suppose you’re seriously injured and your damages total $100,000. If the at-fault driver only carries New Mexico’s minimum liability coverage of $25,000, your UIM coverage may step in to cover the remaining $75,000 (up to your policy limits).

This distinction is important, and knowing your policy limits ahead of time can prevent financial disaster.

Steps to Take After an Accident with an Uninsured or Underinsured Driver

If you’ve been in an accident and discover the at-fault driver has no insurance or inadequate coverage, here’s what you should do:

1. Seek medical attention immediately – Your health and safety are the top priority.
2. Report the accident – File a police report. This documentation will be critical for your claim.
3. Notify your insurance company – Let them know the other driver lacked coverage. This is when UM/UIM protection becomes important.
4. Keep all records – Medical bills, repair estimates, and missed work documentation strengthen your claim.
5. Contact an attorney – Insurance companies often try to minimize UM/UIM payouts. A lawyer can ensure you pursue the full compensation you deserve.

What Happens if You Don’t Have UM/UIM Coverage?

Some drivers choose to decline UM/UIM coverage to save money on premiums. However, this decision often backfires. If you’re injured by an uninsured driver and you don’t have this protection, you may be forced to pay your medical expenses out of pocket or sue the at-fault driver directly.

Unfortunately, many uninsured drivers lack the financial resources to pay a judgment, meaning you could win your case but still never receive compensation. This is why we strongly encourage drivers to carry UM/UIM coverage in amounts that match or exceed their liability limits.

Common Insurance Company Tactics in UM/UIM Claims

Even when you’ve paid for coverage, insurance companies don’t always make it easy to recover compensation. Some of the tactics we see include:

• Delaying claims to pressure victims into settling for less.
• Questioning the severity of injuries despite clear medical documentation.
• Arguing about coverage limits or policy interpretation.

Working with an experienced attorney ensures your claim is taken seriously and handled fairly.

How VOZH Law Helps in UM/UIM Cases

At VOZH Law, we guide clients through every step of these complex cases, including:

• Review your insurance policy to confirm available coverage.
• Collecting medical and accident documentation (read our blog on how medical records impact your injury settlement).
• Negotiating with your insurance company for a fair settlement.
• Taking your case to court if necessary.

Protecting Your Rights After an Accident

Accidents with uninsured and underinsured drivers in New Mexico create unique challenges, but you don’t have to face them alone. The sooner you act, the better your chances of securing the compensation you need for recovery.

Contact VOZH Law today for a free consultation. Our experienced personal injury attorneys will review your case, explain your options, and help you move forward with confidence.