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 from allowing their vehicles to operate on public roads without uninsured motorist coverage and requires that individuals driving such vehicles also ensure they carry this coverage.

Furthermore, the bill 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. The previous provisions allowing for the rejection of uninsured motorist coverage have been removed, reinforcing the necessity of this coverage. The effective date for these changes is set for January 1, 2026.

Statutes affected:
introduced version: 66-5-301