What To Look For When purchasing New Mexico car Insurance

There is a big uproar going on in the insurance circles in the State of New Mexico and it has to do with uninsured motorist coverage. I am going to let you in on the big secret about how you can get even more money out of a claim that you have already settled and I’ll tell you why there is not a single insurance company operating in the state of New Mexico that have valid Uninsured Motorist filings, and what that means to you.

First of all, I need to tell you exactly what uninsured motorist coverage is. This is the coverage that applies if you are struck by someone who should have insurance but doesn’t. Almost half of the people in New Mexico don’t have auto insurance coverage so it’s a good idea to carry this particular coverage. In order for the coverage to apply the other party must be at fault for the accident and they also didn’t have any insurance coverage in force at the time of the accident.

There are two types of uninsured motorist coverage: stacked and non-stacked. The stacked coverage applies in a multivehicle policy and allows you to apply coverage from one vehicle one the policy that was not involved in the accident and "stack" it on top of the coverage for the vehicle that was involved in the accident, this will effectively double your uninsured motorist limit.

Many insurance agents don’t sell stacked uninsured motorist coverage because it is slightly more expensive than the non-stacked coverage. In order to remain competitive with the other prices around town most agents are forced to sell the cheapest thing and that would be non-stacked coverage.

Recently the New Mexico Supreme Court made a ruling in Progressive vs. Weed Warrior Services and Brenda Etcheverry that severely limits the ability of insurance companies to sell the non-stacked uninsured motorist coverage. In the decision the court decided that stacked uninsured motorist coverage must be offered to every policy holder and that the price difference between the stacked, non-stacked, and no uninsured motorist coverage must be specified in the offer.

There is currently no insurance company in the state that offers, or rejects their uninsured motorist coverage this way. That means that all insurance companies effectively sell stacked uninsured motorist coverage on all of their policies. If you have had an uninsured motorist claim in the last seven years you can probably get more money from the insurance company for the claim that was already settled.



ABC Insurance Services has been sellingNew Mexico auto insurance for years. New Mexico car insurance is our expertise. Come and visit us.