Hit by a driver with too little insurance? You don't have to handle it alone.

An underinsured motorist catastrophic injury claim lets you ask your own auto insurer for payment when the at-fault driver’s insurance isn’t enough. In Albuquerque, this often comes up after a crash that causes a spinal cord injury, an amputation, a severe burn, or another injury that changes daily life. This guide explains how the coverage works in New Mexico, what to do in the first weeks, and what the process looks like.

What Underinsured Motorist Coverage Is and Who It Applies To

Underinsured motorist (UIM) coverage is part of your own auto policy. It can help when the at-fault driver carries too little liability insurance. Under New Mexico’s uninsured motorist statute, an “underinsured motorist” is an operator of a motor vehicle for which the sum of the limits of liability under all bodily injury liability insurance applicable at the time of the accident is less than the limits of liability under the insured’s uninsured motorist coverage (N.M. Stat. § 66-5-301(B)).

Uninsured motorist (UM) coverage is related but separate. It applies when the at-fault driver has no insurance at all. The same statute covers both, and it says UM coverage includes UIM coverage for people protected by the policy.

Coverage isn’t always in place. The named insured can reject UM/UIM coverage. New Mexico law gives the named insured the right to reject uninsured motorist coverage, and a written-request condition applies to certain renewal policies. Check your policy paperwork for a signed rejection.

Who can recover depends on the policy language. Coverage may reach the named insured and family members in the household. Some policies may also cover passengers. Read your declarations page and policy form to see who is listed.

When a Catastrophic Injury Exceeds the At-Fault Driver’s Limits

A catastrophic injury can create costs far above the at-fault driver’s liability limits. Spinal cord injuries, amputations, and severe burns often need long hospital stays, rehabilitation, equipment, and home changes. Some of these costs continue for years.

Spinal cord injuries show why. The spinal cord has three layers of protective tissue, and cerebrospinal fluid cushions it. Even so, damage can disrupt signals to the body. Injuries high in the neck can affect the nerves that drive breathing, according to the National Institute of Neurological Disorders and Stroke.

Two sets of limits matter. Gather the at-fault driver’s bodily injury liability limits and your own UM/UIM limits before you decide anything. The at-fault driver’s insurer may offer its policy limits. Your own insurer should also be told about the claim, and you should keep copies of every letter from both companies.

Early bills are only part of the picture. Future care, therapy, and lost earning ability often don’t appear on the first statement.

What a UIM Claim Can Include

A UIM claim can seek the losses a serious injury causes, not just the early medical bills. Common categories include:

• Past and future medical expenses
• Life-care needs, such as attendant care and equipment
• Lost wages and lost ability to earn in the future
• Pain and suffering
• Loss of consortium for a close family member

Loss of consortium is a claim for harm to a close relationship. In New Mexico, these damages belong to the family member, not to the injured person or the estate (Thompson v. City of Albuquerque). The family member must show a mutually dependent relationship. That means they relied on each other and could not enjoy life in the same way after the injury (UJI 13-1810A NMRA).

Strong claims rest on records. Medical records, bills, treatment plans, wage records, and provider statements about future care all support each category. The policy limit doesn’t set the value of a claim. The final amount depends on the facts of the crash, the medical records, and the policy language, so don’t assume a number from any single figure.

What to Do After a Crash With an Underinsured or Uninsured Driver in Albuquerque

The first steps protect both your health and your claim. Start with medical care and follow the treatment plan. Early records matter.

• Get medical care right away. Keep every appointment and follow each instruction.
• Notify law enforcement right away. When an accident results in bodily injury to or death of any person, or property damage to an apparent extent of five hundred dollars ($500) or more, the driver involved must immediately, by the quickest means of communication, notify the police department if the accident occurs within a municipality, and otherwise the office of the county sheriff or the nearest office of the New Mexico state police (N.M. Stat. § 66-7-206). The driver of a vehicle involved in an accident resulting in injury to or death of any person must immediately stop at the scene of the accident or as close to it as possible, and must remain at the scene until the statutory requirements are met (NMSA 1978, § 66-7-201).
• Notify your own insurer promptly. Your policy may have its own notice rules, so read them early.
• Record the details. Write down the other driver’s information, witness names, and scene conditions. Take photos.
• Keep a log. Track expenses, missed work, and daily limits. Save every bill, receipt, and insurance letter.
• Watch the filing deadline. Section 37-1-8 sets a three-year period for actions for an injury to the person or reputation of any person, and whether that period governs a particular claim depends on that claim’s facts (N.M. Stat. § 37-1-8).
• Review releases before you sign. A release signed with one party doesn’t automatically end claims against others. Under New Mexico law, when the injured person releases one joint tortfeasor, whether before or after judgment, that release does not discharge the other tortfeasors unless it says so; instead, it reduces the claim against the other tortfeasors by the amount of the consideration paid for the release, or by any amount or proportion the release states the total claim will be reduced, if that is greater than the consideration paid (N.M. Stat. § 41-3-4).

How the UIM Claim Process Works and What to Expect

Each claim moves through a few common stages. The steps below show what to expect.

1. Free initial review. Gather the crash report, the other driver’s insurance information, your policy declarations page, and your medical history.
2. Coverage review. Confirm your UM/UIM limits, the at-fault driver’s liability limits, and any exclusions or rejection forms.
3. Investigation and documentation. Collect medical records, bills, wage information, and provider statements about future care.
4. Demand and negotiation. Present a demand backed by the records, then respond to the insurer’s offers and requests.
5. Settlement or lawsuit. Many claims resolve through negotiation. If they don’t, a court case may be needed, and that adds time.

Timelines vary with the medical picture and the insurer’s responses. Catastrophic injury claims often take longer, especially while treatment continues.

Why Work With El Gringo Law on a Catastrophic Injury UIM Claim

El Gringo Law represents people hurt in car accidents, trucking accidents, premises liability cases, negligent security cases, wrongful death cases, sexual assault cases, catastrophic injuries, spinal cord injuries, amputations, and burn injuries. The firm represents people hurt in crashes in Albuquerque and Bernalillo County.

Josh Wood is the responsible lawyer for this page. He is licensed in New Mexico and Arizona. Our team supports the work and helps clients understand each step.

Every case is different. Every case is different; past results do not predict a similar outcome. The initial consultation is free, confidential, and carries no obligation to continue (consulta inicial gratuita, confidencial y sin compromiso). You can reach the firm at elgringolaw.com or through the contact form.

Frequently Asked Questions