Summary:

 Senate Bill 319 (SB 319):  This bill amends Section 66-5-301 NMSA 1978 to require uninsured (UM) and underinsured (UIM) motorist coverage in all automobile liability policies and clarifies related provisions.  

Legislation Overview:

 Senate Bill 319 (SB 319):  This bill offers the following key points:
1.	Mandatory Coverage - 
a)	Automobile liability policies must include uninsured motorist (UM) and underinsured motorist (UIM) coverage at minimum liability limits set forth in Section 66-5-215 NMSA 1978.
b)	Insureds may purchase higher UM/UIM coverage up to the policy’s bodily injury and property damage liability limits.
2.	No Rejection Option - 
c)	Removes the previous right of named insureds to reject UM/UIM coverage.
d)	A vehicle may not be operated on New Mexico roads without UM/UIM coverage.
3.	No Offset for Underinsured Coverage -
e)	Prevents insurers from reducing underinsured coverage payouts by the amount of the at-fault driver’s liability limits.
4.	Selection on a Per-Vehicle Basis -
f)	Each vehicle on a policy requires a separate signed selection form, showing coverage levels and premiums.
5.	Definition of “Underinsured” - Underinsured now means that all available liability coverage at the time of the accident is insufficient to cover the damages caused to the insured.
The effective date of this legislation is January 1, 2026.
 

Current Law:

 "motor vehicle insurance policy" means a policy of vehicle insurance that covers 
self-propelled vehicles of a kind required to be registered pursuant to New Mexico law 
for use on the public streets and highways.  A "motor vehicle insurance policy":  
(1) 
shall include: 
(a) motor vehicle bodily injury and property damage liability coverages in 
compliance with the Mandatory Financial Responsibility Act; and
(b) uninsured motorist coverage, subject to the provisions of Section 66-5-301 
NMSA 1978 permitting the insured to reject such coverage; and 
(2) the policy.  May include: 
(a) physical damage coverage; 
(b) medical payments coverage; and 
(c) other coverages that the insured and the insurer agree to include within the policy.