No, uninsured motorist coverage is not required in New Mexico. Insurance companies are required to offer at least $25,000 in uninsured motorist coverage per person, up to $50,000 per accident, plus $10,000 of property damage coverage, but drivers can reject the coverage in writing. For drivers who do not opt out, the coverage helps pay for a car accident in which one of the drivers doesn’t have car insurance, or doesn’t have enough coverage for the damage they caused.
Normally, an at-fault driver’s insurance helps pay for any damage after an accident. But if the other driver doesn’t have any – or enough – coverage, it can be time-consuming and difficult to sue them for funds to cover any bills. That’s where this optional insurance coverage can help save drivers time and money.
Even though New Mexico does not require uninsured and underinsured motorist coverage, it’s still a wise decision to buy some if you can afford it. In New Mexico, an average of 20.8% of drivers on the road don’t have car insurance. That means you have a 1 in 5 chance that the other driver won’t have insurance if you get into an accident. That makes uninsured motorist insurance a good investment, considering how expensive car accidents can be. Fatal accidents in New Mexico have a total cost of $433 million each year, for example.
Key Facts About Uninsured Motorist Coverage in New Mexico:
Uninsured Drivers on the Road: 20.8%
Minimum Uninsured Motorist Coverage (if included on policy): $25,000 in uninsured motorist coverage per person, up to $50,000 per accident, plus $10,000 of property damage coverage
Crashes per Year in the U.S.: 6 million
Average Damages per Accident with No Injuries (U.S.): $8,900
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