If you’ve ever been involved in a car accident, you know how important it is to have insurance. But what happens if you’re hit by a driver who doesn’t have insurance or doesn’t have enough coverage? In New Mexico, uninsured motorist (UM) and underinsured motorist (UIM) coverage can protect you in these situations. This blog will explain how UM/UIM coverage works and why it’s essential for drivers in Rio Rancho and across New Mexico.
What Is Uninsured and Underinsured Motorist Coverage?
Uninsured motorist (UM) coverage helps cover the costs of an accident if the at-fault driver doesn’t have insurance. Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their policy limits are too low to cover all the damages you incurred. Both types of coverage are designed to protect you and your passengers from being stuck with significant out-of-pocket expenses after an accident.
In New Mexico, insurance companies are required to offer UM/UIM coverage when you purchase an auto insurance policy. It’s up to you whether to accept or reject it, but considering the high rate of uninsured drivers in the state, rejecting this coverage could put you at significant financial risk.
Why Is Uninsured Motorist Coverage Important in New Mexico?
High Rate of Uninsured Drivers
New Mexico has one of the highest rates of uninsured drivers in the country. According to the Insurance Information Institute, about 25% of drivers in the state are uninsured. This means there’s a one in five chance that, if you’re involved in an accident, the other driver may not have insurance. Without UM coverage, you could be left paying for your medical expenses, vehicle damage, and other losses.
Financial Protection for You and Your Family
The aftermath of an accident can be financially devastating, especially if you’re facing medical bills, lost wages, and property damage. UM/UIM coverage ensures you aren’t financially ruined because of someone else’s negligence. With this protection in place, you can rest easier knowing that your insurance policy will step in if the at-fault driver cannot cover your losses.
Covers Hit-and-Run Accidents
Uninsured motorist coverage can also protect you if you’re the victim of a hit-and-run accident. In many hit-and-run cases, the responsible driver is never found, which means their insurance information is unknown. If you don’t have UM coverage, you may be left covering the costs yourself. However, with UM coverage, your own insurance company will step in to cover your damages, just as if the at-fault driver had no insurance.
Affordable Coverage with Significant Benefits
One of the biggest misconceptions is that adding UM/UIM coverage will significantly raise your premiums. In reality, UM/UIM coverage is generally affordable and offers substantial peace of mind. Considering the high probability of encountering an uninsured or underinsured driver in New Mexico, the extra cost is often well worth it.
How Uninsured Motorist Coverage Works in New Mexico
If you’re in an accident caused by an uninsured or underinsured driver, here’s how the UM/UIM process typically works:
1. Filing a Claim: After the accident, you’ll need to file a claim with your own insurance company under your UM/UIM coverage. Your insurance company will investigate the claim and determine whether the other driver was at fault and if they lacked adequate insurance.
2. Compensation: If your claim is approved, your insurance company will compensate you for the damages covered under your policy, such as medical bills, lost wages, and vehicle repairs.
3. Limits and Deductibles: UM/UIM coverage typically has limits, which are the maximum amounts your insurance company will pay. Be sure to review your policy to understand the coverage limits and whether they’re enough to cover potential accidents.
4. Stacking Coverage: In New Mexico, you may have the option to “stack” your UM/UIM coverage if you have multiple vehicles insured under the same policy. This allows you to combine the coverage limits from each vehicle, giving you greater protection in the event of a serious accident.
Contact Sanchez & Piñon Today!
Driving in New Mexico means sharing the road with many uninsured or underinsured drivers. Protecting yourself with UM/UIM coverage can save you from significant financial losses if you’re involved in an accident with one of these drivers. At Sanchez & Piñon in Rio Rancho, we’ve seen the severe consequences of accidents involving uninsured motorists. Don’t leave your financial security to chance—make sure you have the coverage you need. Contact Sanchez & Piñon today for a consultation and let us guide you through the process of protecting your rights.