The bill amends Section 66-5-301 of the New Mexico Statutes to establish minimum insurance requirements for uninsured and underinsured motorists. It mandates that no motor vehicle liability policy can be issued in New Mexico without including coverage for uninsured motorists, and it specifies that no offset of underinsured motorist coverage can be taken based on the liability coverage limits paid by an underinsured tortfeasor. Additionally, the bill introduces new provisions that prohibit vehicle owners and drivers from operating a vehicle on New Mexico streets or highways without carrying uninsured motorist coverage.

Furthermore, the bill clarifies that the selection of uninsured motorist coverage must be made on a per-vehicle basis, requiring insurers to provide a separate selection form detailing available coverage levels and corresponding premiums for each vehicle. The definition of "underinsured" is also updated to specify that it refers to situations where the total limits of liability under all applicable insurance are insufficient to cover the damages incurred by an insured motorist. The provisions of this act are set to take effect on January 1, 2026.

Statutes affected:
introduced version: 66-5-208, 66-5-301
TP substitute: 66-5-301