You're driving home from work in Albuquerque when suddenly, another vehicle runs a red light and slams into your car. The accident wasn't your fault—but the other driver doesn't have insurance. Now what?
When the at-fault driver is uninsured or underinsured, having the right coverage on your own policy can make all the difference. According to the Insurance Research Council, approximately 15 percent of U.S. drivers are underinsured, and 18 percent lack any auto insurance coverage. This means that roughly one in three drivers you encounter leaves you at risk of paying out-of-pocket if they cause a crash.
If the unthinkable happens, you’ll need a trusted advocate on your side. That's where the experienced car accident attorneys at Keller & Keller come in, fighting for the full compensation you deserve. Here's what every motorist needs to know, especially with recent changes to New Mexico law.
What is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage protects you when the at-fault driver has no auto insurance at all. It pays for:
- Medical expenses for you and your passengers
- Lost wages if you miss work due to accident-related injuries
- Property damage or loss
- Pain and suffering damages
- Funeral expenses in fatal collisions
Why Is Uninsured Motorist Coverage Essential in New Mexico?
In a typical auto accident, the at-fault driver’s insurance company is responsible for damages. However, when the at-fault driver is uninsured, there is nothing to cover your losses unless you have uninsured coverage on your policy.
New Mexico has one of the highest rates of uninsured drivers in the country. Roughly 24 percent of drivers have no auto insurance—well above the national average of 18 percent. If one of those drivers causes a crash, uninsured motorist (UM) coverage may be the only way to recover fair compensation for your losses. Without it, you could be left paying out-of-pocket for expenses the at-fault driver should cover.
When an uninsured driver causes an accident, it can feel like they're getting away with no financial accountability. While you could sue them personally, most don't have the assets to cover your losses. Without uninsured motorist protection, you may be left unable to recover any compensation for your injuries or property damage.
How Is Underinsured Motorist Coverage Different?
Underinsured motorist (UIM) coverage is distinct from UM protection. When the at-fault driver has insurance, but their policy limits aren't high enough to fully compensate you, your UIM coverage makes up the difference. UIM can be particularly beneficial when you're severely injured by an at-fault driver whose policy limits are lower than yours.
For instance, New Mexico's state minimum liability coverage is $25,000 per person and $50,000 per accident. If you carry $50,000 per person and $100,000 per accident, and someone with only the state minimum hits you, they would be considered underinsured relative to your policy. In this scenario, your UIM coverage could help make up the difference between your limits and theirs, providing additional compensation for your losses.
Both UM and UIM coverage serve a critical purpose: protecting you when the at-fault driver either has no insurance at all or lacks sufficient coverage to compensate you fully. Without these protections, you could be left with no way to recover for your injuries or property damage after a serious wreck.
Recent Changes to New Mexico Law
As of January 1, 2026, New Mexico requires all auto policies to include both UM and UIM coverage at a minimum 25/50/10 level:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $10,000 per accident for property damage
Before 2026, you were allowed to decline this coverage. However, the new law expands protection for all motorists in New Mexico.
If you're unsure about your current coverage, contact your insurance agent and ask:
- Do I currently have UM and UIM coverage?
- What are my exact UM/UIM limits?
- Should I consider raising my limits based on my assets and risk factors?
Don't wait until a crisis strikes to discover gaps in your protection. Be proactive and get answers before you need them.
How Much Uninsured Motorist Coverage Do I Need?
No one expects to be hit by an uninsured or underinsured driver—but it happens every day in New Mexico. Without proper UM/UIM protection, one split-second collision could derail your finances for years to come.
While the new law sets a minimum UM/UIM level, it's often wise to carry more. A good rule of thumb is to match your liability limits, especially if you have coverage of 100/300 or higher. Remember, UM/UIM only pays up to your coverage maximum. If your limits are too low, you could still face out-of-pocket expenses after a serious crash.
- Assess your coverage needs. Consult with an experienced auto accident lawyer who can assess your unique risks and coverage needs. That way, you'll be prepared long before an uninsured driver turns your life upside-down.
- Ensure your auto insurance policy follows current law. Contact your auto insurance agent to ask about your current UM/UIM coverage limits and determine what changes are necessary to remain compliant and protect yourself.
If the worst happens and you end up in a collision with an uninsured or underinsured driver, the knowledgeable car accident attorneys at Keller & Keller are here to fight for you every step of the way. Our skilled legal team will work closely with all pertinent insurance companies to ensure you receive the compensation you deserve.