When you are involved in a car accident, you reasonably expect that the at-fault driver will pay for your medical expenses and any other harm they caused from their negligent driving. But what happens if the amount of your damages exceeds this amount? An experienced Albuquerque car accident lawyer can walk you through the legal process and your options if this situation applies to you.
New Mexico’s At-Fault Insurance System
Most states operate under a no-fault or fault-based insurance system. In no-fault states, injured drivers turn to their own insurance for coverage to help pay for their medical bills and lost wages. They usually can’t sue unless they suffer a serious injury, as defined by state law, or their injuries surpass a certain dollar amount.
In fault-based states, drivers pursue compensation from the party at fault for the accident. This is typically done by filing a claim with the at-fault driver’s liability insurance policy. New Mexico is an at-fault state for car insurance.
New Mexico Minimum Insurance Limits
In New Mexico, all motorists must have the following minimum amounts of liability insurance to pay for the damages they cause others through their negligent driving:
- $25,000 for bodily injury to or death of one person in an accident
- $50,000 for bodily injury to or death of more than one person in an accident
- $10,000 for property damage in an accident
What Happens If Your Damages Exceed New Mexico’s Minimum Insurance Limits?
Unfortunately, many people choose only to purchase the minimum amount of insurance required by law. Insurance companies will only agree to settle claims up to the maximum amount provided under the policy.
However, it’s very easy to see that if you are injured in a motor vehicle accident, your damages could well exceed the minimum amount. Essentially, if you require emergency medical treatment, have to take extended time off work, or suffer chronic pain, this effect on your life will likely be monetized for more than the minimum liability limit.
When this situation arises, you may have three legal options:
Filing a Personal Injury Lawsuit Against the At-Fault Driver
Unfortunately, many people choose only to purchase the minimum amount of insurance required by law. Insurance companies will usually only pay up to the maximum amount of insurance coverage that applies under the policy.
However, that doesn’t mean that the at-fault driver is off the hook. You may be able to file a personal injury lawsuit against them for the difference between the insurance settlement and your damages. Still, some drivers lack sufficient assets, so it might not make financial sense to sue them if you ultimately would be unlikely to recover a judgment issued to you. An experienced attorney can review your situation and determine if this option makes sense.
Finding Other Parties Responsible for Your Injuries
There may be other parties that you can pursue for compensation if their negligence contributed to the accident, such as:
- Another driver involved in the accident
- An employer if the at-fault driver was working at the time of the accident
- A product manufacturer that made a defective part that contributed to the accident
- A government agency if poor road conditions played a part
- A server of alcohol to an intoxicated driver
- The owner of the vehicle entrusted to an unsafe driver
Filing a Claim with Your Own Insurance
You may have insurance that can help pay for your damages, such as:
- Collision insurance to help pay for car repair bills
- Health insurance to help pay for your accident-related medical expenses
- Uninsured motorist coverage if the at-fault driver had no insurance
- Underinsured motorist coverage if the at-fault driver did not have enough insurance to cover all of your damages
Caruso Law Offices, P.C. can discuss your options and how we can help with the claims process when you call for a free case review at (505) 308-0427
.