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Mar 26, 2026
According to a 2022 study from the Federal Highway Administration, there were over 235 million licensed drivers in the United States. Of those drivers, 14% either lacked insurance or had insufficient coverage to cover accident damages.
Here in New Mexico, we frequently see the need for underinsured motorist coverage arise after accidents where the harm caused by the crash far exceeds the insurance carried by the other driver.
How Underinsured Motorist Coverage Works in New Mexico
New Mexico car accident laws work hard to prevent injured people from having no meaningful legal options when a negligent driver has limited or no insurance coverage. So, under New Mexico law, when another driver’s liability insurance isn’t enough to fully compensate you, underinsured motorist coverage kicks in.
An underinsured motorist claim can cover your medical bills and lost wages, along with pain and suffering expenses from a crash. In more serious cases, it can also apply when an accident causes a permanent disability or the wrongful death of a loved one.
Where These Accidents Happen
Several major routes throughout Northern New Mexico experience serious car accidents with alarming frequency. Interstate 25, U.S. Highway 84/285, and U.S. Highway 599 all experience heavy commuter and commercial traffic, which can lead to more high-impact collisions. Pojoaque, Santa Fe, and other communities with major roadways like these are at higher risk of a crash that has serious injuries.
Accidents on these roadways can be particularly brutal, and underinsured motorist coverage is usually an important part of the case when an accident happens.
Why There Is No Set Amount
People often wonder if there is a magic number for an underinsured motorist claim. The total damages that can be recovered from an accident vary for each case because multiple factors interact to determine the final amount. Among the most important variables are:
- The severity of your injuries
- Medical bills
- Your recovery period
- How the accident impacts your daily life
- How the accident impacts your income and earning abilities
- Pain and suffering
Additionally, your level of fault may also be taken into consideration. New Mexico operates on pure comparative negligence for claims, so while you may still be able to recover damages, the amount may be decreased by the level of fault you hold.
Also, if your loved one was injured in this type of accident and passed away because of it, the case will be handled under the Wrongful Death Act.
