How Much Can I Get from an Underinsured Motorist Claim?

In New Mexico, about 24.1% of drivers are uninsured, according to the Insurance Information Institute, and many more carry only the minimum required coverage. That creates a serious problem for injured riders after a motorcycle crash. When the at-fault driver’s policy is too small to cover your medical bills, lost income, and property damage, your underinsured motorist (UIM) coverage can make up the difference.

If you are wondering, “How much can I get from an underinsured motorist claim?” The answer depends on your specific policy limits, the extent of your injuries, and other case factors, including the insurer’s willingness to negotiate fairly. At Parnall Law, we help injured motorcyclists understand their coverage, deal with insurance companies, and fight for the compensation they deserve.

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Understanding the Underinsured Motorist Coverage

Underinsured motorist coverage is part of your auto or motorcycle insurance policy that pays for your damages when the at-fault driver’s liability insurance is not enough to cover your losses. According to the New Mexico Statutes Section 66-5-301, all motor vehicle policies issued in the state must include uninsured and underinsured motorist protection unless the policyholder rejects it in writing.

Policy limits are the maximum amount your insurance will pay for a covered claim. For example, if your UIM coverage is $50,000 and the at-fault driver has only $25,000 in liability coverage, you can potentially recover an additional $25,000 through your policy, helping cover expenses such as medical treatment, lost income, or motorcycle repairs that exceed the other driver’s insurance limits.

In motorcycle accidents, injuries are often severe, meaning medical costs and lost wages can quickly exceed the other driver’s coverage. If you share some fault in the accident, New Mexico’s comparative negligence rule applies. This means your compensation is reduced by your percentage of fault. For example, if you are found 20% at fault and your total damages are $100,000, you could recover $80,000 from your UIM coverage.

Does New Mexico Require Underinsured Motorist Coverage?

No, New Mexico does not require you to carry underinsured motorist coverage, but it must be offered to you. State law requires insurers to include UIM coverage in every auto policy unless you reject it in writing. If you never signed a written waiver, you probably have this protection.

This type of protection is especially important for motorcycle riders, as the costs from a serious crash can rise fast. Motorcycle accidents often cause damages that far exceed what the at-fault driver’s policy can cover, leaving you with significant unpaid expenses, including medical bills, lost wages, and costly motorcycle repairs that can impact your finances for years.

UIM coverage gives you an important layer of protection, helping cover costs the other driver’s policy won’t. It allows you to concentrate on healing while your own insurance addresses the remaining financial losses from the crash.

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Factors that Affect Your Compensation Claim

Several factors determine how much you can recover under your UIM coverage after a motorcycle accident:

• Policy limits: The maximum payout allowed under your policy. Higher limits mean more potential recovery, especially in severe injury cases.
• Severity of injuries: More serious injuries often result in higher medical bills and longer recovery times, which can increase compensation.
• Lost income: When an injury keeps you from working, the value of your claim can rise because of lost income and the impact on your ability to earn in the future, particularly with lasting disabilities.
• Medical expenses: Hospital stays, surgeries, physical therapy, medications, and ongoing treatment all add to the total damages and strengthen your claim.
• Pain and suffering: Physical pain, ongoing emotional strain, and the loss of enjoyment in daily life are often weighed during settlement talks, and these factors can greatly influence the amount you receive.
• Shared fault: When you share some responsibility for a crash, New Mexico’s comparative negligence rule lowers the amount you can recover in proportion to your percentage of fault.
• Property damage: Repair or replacement costs for your motorcycle and gear, including custom parts or safety equipment, can be included in your claim.

Each of these factors works together to determine the final settlement or award. A thorough evaluation of your losses, supported by solid proof and detailed records, can greatly increase the likelihood of recovering the maximum payout allowed under your underinsured motorist coverage.

How Much Can I Claim from My Underinsured Motorist Coverage?

You may recover up to the maximum amount available under your underinsured motorist policy, after subtracting what the at-fault driver’s insurer has already paid. The New Mexico Office of Superintendent of Insurance notes that the state’s minimum liability limits, as required by law, are:

• $25,000 per person
• $50,000 per accident for bodily injury
• $10,000 for property damage

In serious motorcycle accidents, damages can easily exceed $100,000, making UIM coverage vital for protecting your financial recovery and preventing long-term financial strain. Your claim may also cover past and future medical expenses, lost wages and reduced earning ability, repairs or replacement for your motorcycle, and pain, suffering, and emotional trauma.

Insurance companies may delay processing, dispute, or offer less than what a valid UIM claim is worth. By understanding your rights and your policy’s terms, you can better protect yourself and work toward receiving fair payment.

How Can a Car Accident Lawyer Help Me?

Understanding how much you can get from an underinsured motorist claim after a motorcycle accident is only part of the equation. The real challenge is navigating the claims process while recovering from your injuries. A car accident lawyer can take that burden off your shoulders by examining your policy in detail, uncovering every potential source of compensation, gathering strong supporting evidence, and speaking directly with your insurance company to push for the highest amount possible under your coverage.

At Parnall Law, we stand beside injured riders from day one. We work to push back against unfair settlement offers, address disputes efficiently, and, when necessary, present your case in court to pursue the compensation you deserve. Call (505) 268-6500 today for a free and confidential consultation.