The Insurance Research Council (IRC) has found that New Mexico leads the nation in uninsured motorist. Twenty-nine percent of New Mexico Motorists have no insurance. This does not reflect the true scope of the problem as many more are underinsured.
The IRC predicts that by the year 2010, 16.7% of drivers nationally will be uninsured. In 2007, the percent stood at 13.8%. This is a disturbing trend. The IRC suggest that the economic downturn has led to the rise in uninsured motorists. As the economy continues to falter, the situation is likely only to get worse. This is particularly true in New Mexico which is a relatively poor state. Continued problems with the economy will undoubtedly lead to not only an increase in uninsured New Mexico motorists, but also to an increase in underinsured motorists.
According to the report, there is a strong correlation between the number of uninsured motorists and unemployment. With every one point percentage increase in unemployment, there is a rise of 3/4 percentage point in uninsured motorists, almost 1 to 1 ration. With national unemployment hitting 10%, the number of uninsured motorists is likely to continue to climb dramatically.
Again these numbers do not ever begin to address the equally if not more significant issue of underinsured motorists. In New Mexico, if you are in an accident, you have a 29% chance that the other party has no insurance. The chance that the other party has only minimal insurance policy limits of $25,000 is significantly higher.
In a serious accident, even $25,000 will not come close to covering your injuries and other damages. It is important in New Mexico to carry high underinsured coverage limits. This may be the only coverage available for you and your loved ones in a serious accident.