Bill > SB319

This bill updates New Mexico's motor vehicle insurance law by modifying requirements for uninsured and underinsured motorist coverage. The bill eliminates the previous provision that allowed drivers to reject uninsured motorist coverage and instead mandates that all motor vehicles operating on New Mexico streets and highways must carry such coverage. The legislation introduces new requirements, including that uninsured motorist coverage selection must be made on a per-vehicle basis, with insurers required to provide a separate selection form detailing available coverage levels and corresponding premiums. The bill also clarifies the definition of "underinsured" as situations where the total available liability insurance is insufficient to pay damages to an insured motorist. Importantly, the bill prohibits insurers from offsetting underinsured motorist coverage based on liability coverage limits already paid by an underinsured tortfeasor. This change aims to provide more comprehensive protection for drivers in accidents involving uninsured or underinsured motorists. The new provisions will take effect on January 1, 2026, giving insurance companies and vehicle owners time to adjust to the updated requirements.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=319&year=25