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 for 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 vehicles on New Mexico streets or highways without carrying uninsured motorist coverage.

Furthermore, the bill clarifies the definition of "underinsured" and requires that the selection of uninsured motorist coverage be made on a per-vehicle basis, with a separate selection form provided to the insured. The effective date for these provisions is set for January 1, 2026. The bill also removes previous language that allowed for the rejection of uninsured motorist coverage and the requirement for underinsured motorist coverage to be included in policies sold in New Mexico.

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