New Mexico Senate Bill SB319

New Mexico 2025 Regular Session

• Introduced: 2/7/25
• Report Pass: 2/19/25
• Report Pass: 2/27/25

Caption

Minimum Car Insurance Amounts

Summary

SB319 would amend New Mexico’s uninsured motorist statute to require motor vehicle liability policies issued in the state to include uninsured motorist coverage and to clarify that this coverage also includes underinsured motorist protection. The bill removes prior language that allowed a named insured to reject uninsured motorist coverage, and it adds a new requirement that coverage selection be made on a per-vehicle basis using a separate signed selection form that lists available coverage levels and premiums. It also states that no offset may be taken against underinsured motorist coverage based on amounts paid by an underinsured tortfeasor’s liability insurer. The bill further makes it unlawful for an owner to permit, or a person to drive, a vehicle on New Mexico streets or highways without uninsured motorist coverage as required by the section. It defines “underinsured” in broader terms, focusing on whether available liability limits are insufficient to cover the insured’s damages. The act would take effect January 1, 2026.

Impact

SB319 would significantly change Section 66-5-301 NMSA 1978 by converting uninsured motorist coverage from a coverage that could be rejected by the named insured into a mandatory component of qualifying auto policies, while also strengthening underinsured motorist protections. It would affect insurers, policyholders, and drivers of vehicles registered or principally garaged in New Mexico by requiring coverage selection documentation and by limiting insurer offsets against underinsured motorist claims. The bill also creates a new compliance obligation tied to vehicle operation on New Mexico roads.

Sentiment

Based on the bill text and the lack of recorded committee discussion or votes in the provided materials, the overall sentiment appears to be policy-driven and consumer-protection oriented, with the bill framed as a way to ensure minimum insurance protection for motorists. The absence of transcripts or vote history means there is no documented opposition or support in the provided record, but the measure’s mandatory coverage approach suggests it is intended to strengthen coverage rather than reduce it.

Contention

The main point of contention likely concerns the elimination of the insured’s ability to reject uninsured motorist coverage, which could increase premiums or reduce consumer flexibility. Another likely issue is the bill’s requirement that coverage be selected on a per-vehicle basis with separate signed forms, which may add administrative burden for insurers and policyholders. The prohibition on offsets for underinsured motorist coverage may also be disputed by insurers because it can increase claim exposure and payout obligations.