Uninsured/Underinsured Motorist Coverage

Auto insurance companies in New Mexico have strict requirements when it comes to offering Uninsured Motorist / Underinsured Motorist (UM / UIM) Coverage.

Uninsured Motorist (UM) coverage provides insurance coverage under your own insurance policy for bodily injury and property damage if you are injured and damaged by an individual who does not have any liability insurance at the time of a crash. Underinsured Motorist (UIM) coverage provides insurance coverage under your own insurance policy for bodily injury and property damage in the event the individual at fault for the crash does not have enough liability insurance to cover your injuries and damages. UM/UIM coverage follows the insureds not their vehicles. In New Mexico, UM/UIM coverage may be applied to victims of crime if an automobile was used in the commission of the crime.

The New Mexico Supreme Court has outlined the requirements an auto insurance company must follow in order not to provide Uninsured/Underinsured motorist coverage to its insured.

In order to be a valid and enforceable rejection, the insurer must:

  1. offer the insured UM/UIM coverage equal to his or her liability limits,
  2. inform the insured about premium costs corresponding to the available levels of coverage,
  3. obtain a written rejection of UM/UIM coverage equal to the liability limits, and
  4. incorporate that rejection into the policy in a way that affords the insured a fair opportunity to reconsider the decision to reject.

Attorney Mollie McGraw is experienced in litigating these claims on behalf of her clients when insurance companies don’t follow the clear rules.