New Mexico enacts changes to uninsured motorist coverage effective January 2026

New Mexico's House Bill 97 aims to enhance protections for drivers by revising uninsured motorist coverage requirements. Introduced on March 11, 2025, the bill seeks to ensure that all motor vehicle policies include uninsured motorist coverage unless explicitly rejected by the policyholder. This change addresses a significant gap in coverage that has left many drivers vulnerable in accidents involving uninsured motorists.

Key provisions of the bill stipulate that uninsured motorist coverage must be included in policies unless the named insured opts out in writing. Additionally, the bill introduces a cap on exclusions for property damage claims, limiting it to the first $250 of loss per accident. This move is designed to provide a safety net for drivers who may otherwise face substantial out-of-pocket expenses due to uninsured motorists.

Debate surrounding House Bill 97 has been lively, with proponents arguing that it will protect consumers and reduce financial burdens on drivers. Critics, however, express concerns about potential increases in insurance premiums as insurers adjust to the new requirements. The bill is set to take effect on January 1, 2026, and its implications could reshape the landscape of auto insurance in New Mexico.

As discussions continue, experts suggest that the bill could lead to a more equitable insurance environment, ensuring that all drivers have access to necessary coverage. The outcome of this legislation may significantly impact the state's insurance market and the financial security of its residents.