This 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 require both vehicle owners and drivers to ensure their vehicles carry uninsured motorist coverage while operating on New Mexico streets and highways.

The bill also clarifies the definition of "underinsured" and stipulates that the selection of uninsured motorist coverage must be made on a per-vehicle basis, requiring a separate selection form for each vehicle. Other deletions from the current law include the removal of the option for named insureds to reject uninsured motorist coverage and the previous requirement for underinsured motorist coverage to be included in policies sold in New Mexico. The effective date for these provisions is set for January 1, 2026.

Statutes affected:
introduced version: 66-5-301