Car accidents are a fact of life. They are far too common. Most people will be in a car accident at least once during their lives. Often times, it will be that person's negligence that caused the accident. The law requires that every driver carry liability insurance for these purposes. Most drivers in New Mexico will comply with the law. Most would do it voluntarily without the law to protect themselves against liability and suit in case of an auto accident.
Most drivers will take action to protect themselves against lawsuits. Unfortunately, they fail to protect themselves against a much greater harm which is far more likely to occur. The harm that a driver will suffer in an auto accident is far more likely to result from the physical injuries that result from the negligence of the other driver.
The costs of these injuries can be catastrophic. There is the physical injury itself which can force a person to miss work. Lost wages can financially cripple a person and his or her family. Most folks cannot afford to miss even one paycheck. Perhaps even more damaging are the medical expenses that result from the injuries. These can be astronomical. And then there is the risk of permanent injury, permanent wage loss, and all the physical and emotional pain and suffering that goes with them. And again, even greater medical expense.
So what is the problem? The problem is that New Mexico has the highest rate of uninsured drivers in the nation with 29% of its drivers uninsured. To make matters worse, New Mexico is a relatively poor state with a relatively poor population. The result is that a huge percentage of those drivers that do have insurance carry only the statutory minimum $25,000.00 in liability coverage because that is all they can afford. Medical alone can quickly exceed $25,000.00. In cases with serious injuries, the lost wages can far exceed this amount particularly if the injured person is required to quit working or change jobs due to the injuries.
In short, if you or a loved one get in a serious accident in New Mexico, it is more than likely that there will be insufficient insurance on the other side to compensate you for your injuries. This problem is easy and relatively inexpensive to address through underinsured motorist coverage. In fact, the coverage is such a good deal that the insurance companies by law must get a written signed waiver from a driver before the coverage can be waived.
Ask yourself why the law would require that an insured sign away coverage and why an insurance company would encourage the waiver of this coverage thereby forfeiting a fee? Clearly, underinsured coverage is a better deal for you than it is for the insurance company. In fact, it is about the only good deal you will ever get from an insurance company. So load up on underinsured coverage. It is almost reckless to drive in New Mexico without it.
New Mexico Laws on Rejection of Uninsured/Underinsured Motorist Coverage are Retroactive
Don't Get Lured Into Waiver of Uninsured/Underinsured Motorist Coverage
Notice Requirements in New Mexico Uninsured/Underinsured Motorist Cases