What Happens When You’re Hit by an Uninsured Driver in New Mexico?
New Mexico has one of the highest rates of uninsured drivers in the United States, creating significant risks for you as you drive around the state. If you’re involved in an accident with an uninsured driver in New Mexico, your options for compensation and recovery depend largely on the specific coverages included in your own insurance policy. Do you have uninsured/underinsured motorist coverage?
The Uninsured Driver Problem in New Mexico
New Mexico consistently ranks among the states with the highest percentages of uninsured motorists:
- According to a 2017 report from the Insurance Research Council, 20.8% of New Mexico drivers were uninsured in 2015
- More recent estimates suggest that approximately 21.8% of New Mexico drivers operate without insurance
- This means roughly one in five drivers you encounter on New Mexico roads has no insurance coverage.
This high rate of uninsured motorists creates a significant financial risk for drivers. That’s because if you are crashed into by another person, there may not be anyone around to pay for your damages.
What Happens After an Accident with an Uninsured Driver
Let’s suppose you only have minimum liability coverage…New Mexico requires all drivers to carry minimum liability insurance of 25/50/10:
- $25,000 per person for bodily injury
- $50,000 per accident total for bodily injury
- $10,000 for property damage
If you only carry this minimum required coverage and are hit by an uninsured driver, you face a serious problem: your liability insurance only covers damage you cause to others, not damage others cause to you. So there is no one that has to pay you back for your damages In this scenario:
- You will not be able to recover compensation from the at-fault driver’s insurance (since they have none)
- Your own liability policy won’t cover your vehicle damage or medical expenses (your insurance company never agreed to pay you back for damages done to you)
- You would be personally responsible for your own medical bills, vehicle repairs, and other losses
- You could file a lawsuit against the uninsured driver, but even if you win, collecting from an uninsured individual is often difficult. Often, people without insurance don’t have much money. It can be very hard to squeeze blood from a rock, as they say.
If You Have Uninsured/Underinsured Motorist Coverage
The outcome is significantly better if your policy includes Uninsured/Underinsured Motorist (UM/UIM) coverage:
- Your insurance company will step in to cover your damages as if they were the at-fault driver’s insurer
- UM/UIM coverage typically includes:
- Medical expenses for you and your passengers
- Lost wages
- Pain and suffering
- Vehicle repairs (if your policy includes property damage UM coverage)
- Coverage for hit-and-run accidents where the driver is never identified
The Claims Process After an Accident with an Uninsured Driver
If you have UM/UIM coverage and are hit by an uninsured driver, the process typically works as follows:
- You report the accident to your own insurance company
- You file a claim under your UM/UIM coverage
- Your insurance company investigates to confirm the other driver was at fault and lacked adequate insurance
- Once confirmed, your insurer compensates you for covered damages up to your policy limits
Conclusion
Being hit by an uninsured driver in New Mexico creates a tough situation where you may be left high and dry. This is especially important given the state’s high rate of uninsured motorists. While you can legally pursue the uninsured driver through a lawsuit, the most reliable protection is having proper insurance coverage yourself-particularly uninsured/underinsured motorist coverage.
Given that approximately one in five New Mexico drivers lacks insurance, declining UM/UIM coverage puts you at significant financial risk. Insurance professionals generally recommend carrying UM/UIM coverage in New Mexico with limits at least equal to your liability coverage limits for maximum protection. In my opinion, UM/UIM is a sound investment to prevent a very costly possibility.
