When the At-Fault Driver's Insurance Isn't Enough, Your Own Coverage May Be

Underinsured motorist (UIM) coverage can help pay for a spinal cord injury in New Mexico when the at-fault driver’s bodily injury limits are too low. It comes from your own auto policy, not the other driver’s. Whether it applies depends on your policy wording and the facts of the crash. This guide explains how the pieces fit, what to gather early, and how to take the next step.

Being the person who has to sort this out is hard. You may be a spouse, parent, or adult child trying to read a policy you have never opened, while a loved one is in a hospital or rehabilitation center. You don’t have to understand every term today.

What Underinsured Motorist Coverage Means in New Mexico

Underinsured motorist coverage is part of your own auto insurance. It may apply when the other driver carries bodily injury limits lower than your own uninsured motorist limits. New Mexico law says uninsured motorist coverage must include underinsured motorist coverage for people protected by the policy. NMSA 1978, § 66-5-301 defines an underinsured motorist as a driver whose total bodily injury liability limits at the time of the crash are less than the limits of the insured’s uninsured motorist coverage.

That is different from the other driver’s liability coverage. Their policy pays claims made against them. Your UIM coverage is a benefit bought for you and your household.

So the real amount available comes from your policy, not the state minimum alone. Start with the declarations page. It lists your limits. The rest of the policy explains how those limits apply.

How a Spinal Cord Injury Changes the Insurance Picture

A spinal cord injury often creates costs that continue for years. Medical care, rehabilitation, equipment, and home changes can all add up. Lost earning ability can be part of the picture too.

Those losses can exceed a standard bodily injury limit, even when the at-fault driver had insurance. A limit that seemed sufficient when the policy was bought may not match years of care. That gap is why UIM coverage matters so much in these cases.

Because of this, look for every policy early. Check your own policy, the injured person’s policy, and any policy in the household. Ask the insurer to confirm each policy’s limits in writing.

Who may bring a claim depends on the facts and the law in each case.

Does UIM Apply When the At-Fault Driver’s Limits Are Too Low?

UIM usually comes into play after you compare the at-fault driver’s bodily injury limits with your damages. The steps run in order. First, find that driver’s bodily injury limit. Next, compare it with the documented damages. Then check your own UIM limit.

Under the statute, the key test is whether the other driver’s total bodily injury limits are less than your uninsured motorist limits. Your policy’s wording decides how those numbers apply to your case.

Some policies stack coverage across more than one vehicle. Others limit it. The number of covered vehicles and the stacking rules are policy questions, so read them closely.

Rejection forms matter too. If a rejection form is in your file, read it closely. Whether UIM applies depends on the facts and the policy wording.

Hit-and-Run and Unidentified Driver Situations

When the other driver cannot be identified or leaves the scene, a different part of your coverage may come into play. Whether a hit-and-run claim is covered depends on the policy terms and the evidence about the other vehicle.

Report the crash right away. New Mexico law requires the driver involved in a crash resulting in bodily injury to or death of any person, or property damage to an apparent extent of $500 or more, to give notice of the crash immediately, by the quickest means of communication, to the police department if it occurs within a municipality, and otherwise to the office of the county sheriff or the nearest office of the New Mexico State Police. Within a municipality, that means the police department. Otherwise, it means the county sheriff or the nearest New Mexico State Police office.

A police report also matters. NMSA 1978, § 66-7-213 allows a certified copy of the investigating officer’s report into evidence in an arbitration or civil case about an insurer’s liability under uninsured motorist coverage, to prove that the owner or operator of the other vehicle is either insured or uninsured. The statute treats that copy as prima facie evidence (evidence that counts unless someone disproves it) that the other vehicle’s owner or operator is insured or uninsured.

While it is fresh, write down what you remember about the other vehicle. Note its color, make, partial plate, direction of travel, and any witnesses. If the injured person cannot do this, ask a family member to help.

Notice, Documentation, and Deadlines to Watch

Policy deadlines and lawsuit deadlines are separate, so check both. Policies often set notice terms that require prompt written notice to your insurer. Read those terms in your policy now.

The driver involved must also file a written report. NMSA 1978, § 66-7-207 requires a written accident report to the department of transportation within five days after the accident when there is bodily injury, death, or total property damage of $500 or more.

For a lawsuit, NMSA 1978, § 37-1-8 sets three years for an action for injury to a person. For minors and incapacitated persons, NMSA 1978, § 37-1-10 extends the limited times so that they have one year from and after the termination of the incapacity to commence actions. Do not assume either deadline is open-ended.

Start a file now. Keep police reports, medical records, bills, wage records, and photos of the scene and vehicles in one place.

Insurer Communications and Recorded Statements

An insurer may ask for a recorded statement or offer a settlement early. You can ask for time before answering detailed questions about the injury.

New Mexico law adds a short window. NMSA 1978, § 41-1-1 bars a person whose interest is adverse to an injured patient from negotiating a settlement, seeking a general release, or obtaining a statement within fifteen days of the occurrence. This applies when the injured person is under a healing-arts provider’s care or confined to a hospital. The same statute makes a settlement, release, or written statement void unless the injured person acknowledges it before a notary public with no adverse interest.

Insurers have duties too. NMSA 1978, § 59A-16-20 lists unfair claims practices. Examples include failing to attempt in good faith to make prompt, fair settlements when liability is reasonably clear, and failing to explain a claim denial or compromise offer. The statute applies to practices knowingly committed or performed with such frequency as to indicate a general business practice. Your policy wording sets what your own insurer must do under the contract.

What to Gather Before Talking With a Lawyer

Gather four items first: the policy declarations pages, the other driver’s insurance details, the crash report number, and the names of treating providers. These may help answer some of your first questions.

• The full declarations page for every vehicle in the household
• Any insurance rejection forms or policy amendments
• The other driver’s insurer and policy number, if known
• The crash report number and the names of all treating providers

A family member can collect these if the injured person cannot. Keep copies of everything. Bringing these records to a first meeting helps show what is known and what is still open.

Talk Through Your Situation With El Gringo Law

If you’re the one trying to make sense of this, you can talk with our team about your situation. You may be handling it for someone in a hospital bed or rehabilitation center, while you deal with a crash you did not choose.

The initial consultation is free, confidential, and carries no obligation to continue.

If you’re managing this for someone you love, our team can talk the policy questions through with you. Reach El Gringo Law through the contact page to call, submit a form, or start a chat. Josh Wood, licensed in New Mexico and Arizona, is the responsible lawyer for this page.

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