Big Changes for Car Insurance in New Mexico: What You Need to Know
The New Mexico Supreme Court has made a significant decision that could reshape how you purchase car insurance. This ruling focuses on uninsured motorist (UM) and underinsured motorist (UIM) coverage. If you’ve ever been in an accident with someone who didn’t have enough insurance to cover the damage, you understand how crucial this coverage can be.
What’s New?
Insurance companies in New Mexico are now required to offer UM/UIM coverage for each vehicle separately. This means you can choose to cover just one car, two cars, or all the vehicles on your policy. No more “all or nothing” deals where you’re forced to buy coverage for every car—or skip it entirely.
Why This Matters
This change gives you more control over your insurance. For example, if you own three cars but only drive one regularly, you can now buy UM/UIM coverage for just that one car. It’s more affordable and practical.
The Case That Sparked the Change
The court’s decision stems from a case involving Jared Kileen, an Albuquerque resident who sued his insurance company, Progressive. After a 2018 accident, Progressive denied his UM/UIM claim because his father had rejected the coverage. However, Progressive had offered the coverage for all three of the family’s motorcycles as a group, not individually. The court ruled this practice unfair.
The justices determined that Kileen’s rejection of the coverage wasn’t valid because he wasn’t given a real choice. The case was sent back to the district court for further action.
What Insurance Companies Have to Do Now
This ruling is a game-changer for everyone in New Mexico. Here’s what insurance companies are now required to do:
Offer Coverage Per Vehicle
Insurers must allow you to choose UM/UIM coverage for each vehicle on your policy. Want it for just your truck? Done.
Show the Costs Clearly
Insurance companies must break down the premiums for each vehicle. No more guessing games—you’ll know exactly what you’re paying for.
Give You Real Choices
You should be able to accept or reject coverage for each vehicle individually. No pressure to cover everything or nothing.
Communicate Clearly
Insurers need to ensure you understand your options. No confusing fine print.
When Does This Start?
The court’s decision is effective immediately for Kileen’s case and applies to all future offers of UM/UIM coverage.
What’s the Goal?
The Supreme Court’s goal is to give New Mexicans better options. By making UM/UIM insurance more affordable and easier to understand, the justices hope to encourage more people to purchase this important coverage.
What Should You Do?
Next time you’re shopping for car insurance, pay close attention to how UM/UIM coverage is offered. You should see these changes reflected in your options. If not, don’t hesitate to ask questions.
This ruling is a win for consumers. It’s about fairness, flexibility, and ensuring you have the coverage you need.