Where is Your Auto Insurance Coverage When you Need it?

It is never too late to purchase higher amounts of car insurance. New Mexico requires all vehicles to be insured up to $25,000 per person and $50,000 per accident. What this means is that if you are seriously injured in a car wreck with a minimally insured driver, a potential recovery is limited to only $25,000.

Therefore, you benefit from purchasing underinsured motorist coverage (UIM).


A purchase of minimal limits bodily injury and UIM will not benefit you because of obscure New Mexico law that allows the insurance company to subtract the amount you receive from a negligent driver. For example, if you broke your arm and leg and incurred over $50,000 in medical bills you could only recover the $25,000 from the person that hit you and, because of New Mexico law, your insurance company would not provide you with the UIM coverage to pay for the remaining $25,000 in medical bills.

This is commonly known as an offset and you should purchase the highest amounts of bodily injury and uninsured/underinsured motorist you are financially capable of.

Please contact me if you have questions.