How Car Accident Compensation Works in New Mexico

New Mexico is a “fault,” “at-fault,” or “tort” state for car accidents. This means that the driver who caused the accident is the one liable to pay for victims’ damages. 

New Mexico applies the "pure comparative fault” law to crash compensation. After an investigation, fault for the accident is divided among all those involved. Accident compensation is then reduced by a person’s percentage contribution to the accident. For instance, if a person is 30 percent at fault and their damages are $100,000, their compensation would be reduced by 30 percent to $70,000. 

New Mexico is among the small number of states that does not set a “bar” to seek damages. Even if you are 99 percent at fault in a New Mexico crash, you can still file a claim to collect 1 percent of your damages. Most states require a person to be less than 50 percent or 51 percent at fault in an accident to file a claim.

Every state sets minimum car insurance requirements. In general, to legally drive, New Mexico motorists must purchase a minimum 25/50/10 car insurance plan. That's $25,000 per person per accident, $50,000 total per accident, and $10,000 for property damage. 

Here are common types of insurance coverage available in New Mexico: 

• Bodily Injury (BI) pays for injuries resulting from an accident that you caused. In addition to medical bills, it compensates others for pain and suffering, lost wages, and other damages. Minimum coverage is $25,000 per person per accident and $50,000 total per accident.
• Property Damage (PD) pays for damage to other people’s vehicles in an accident that you caused. The minimum is $10,000.

Including:

• Uninsured/Underinsured Motorist Bodily Injury (UMBI/UIMBI) pays for your bodily injuries if you are involved in an accident caused by an uninsured or underinsured driver.  
• Uninsured Motorist Property Damage is just like UMBI but coverage only applies to property not injuries. 
• Medical Payment Coverage (Med Pay, MPC) helps pay for medical expenses you incur after an accident regardless of fault.  
• Collision pays to repair physical damage or replace your vehicle after an accident. Most lenders require you to carry collision coverage if you have a car loan.
• Comprehensive pays for physical damage to your vehicle that occurred due to things other than a collision. Not all events are covered, but things like vandalism, fire, and theft typically are. 
• Gap Coverage (loan/lease payoff) can be useful if you have a loan on your vehicle. This policy helps pay for the difference between your vehicle’s value and how much you still owe on it after a crash. 
• Roadside Assistance pays for expenses when your vehicle becomes disabled and you need roadside assistance.   
• Rental Reimbursement/Transportation Expenses pays for vehicle rental and transportation expenses, up to a limit, while your vehicle is being repaired.

Some of the factors considered when calculating crash compensation are fault, injury severity, lost wages, and your attorney’s skills. There are two main types of damages – economic and non-economic. 

• Economic damages are losses with stated costs, like bills for medical treatment, physical therapy, lost wages, replacement services like childcare, accessibility modifications, vehicle damage, and reduced earning potential.  
• Non-economic damages are losses with no defined value, like pain and suffering or emotional anguish.

In very rare cases, victims of extreme negligence are awarded “punitive damages” in addition to economic and non-economic damages. Punitive damages are meant to punish reckless drivers, like drunk drivers, and discourage future incidents in the community.  

An experienced New Mexico car accident lawyer understands the types of compensation you are entitled to collect and how to build a strong case that gets results. Car accident and personal injury attorneys calculate compensation packages that value your health and comfort and fight for the settlement you deserve.

Yes, you have the right to file a car accident lawsuit in New Mexico but there are stipulations, and a lawsuit may not be the fastest, most effective way to collect damages. Most car accidents are settled through the claims process. However, there are scenarios in which you may want to consider a car accident lawsuit:  

• Costly damages. Your medical bills, lost wages, and other losses exceed policy limits. Crash victims can sue at-fault drivers personally if their expenses and other damages are above maximum policy limits.    
• Can’t settle. An agreement cannot be reached. Sometimes settlement negotiations break down. If the insurance company keeps lowballing the value of your case, your attorney can file a lawsuit that demands the compensation you deserve.    

You typically have 3 years from the crash date to file. Once the statute of limitations expires, your claim or lawsuit can be dismissed. An experienced New Mexico car accident attorney can review your situation and explain how the law applies specifically to your case. They can ensure that you meet the legal deadlines and requirements for maximum compensation.

What if the other driver doesn’t have insurance?

Drivers in New Mexico are not required to carry UMBI/UIMBI (uninsured motorist) coverage, but purchasing it is strongly encouraged. When you have UMBI/UIMBI, you are covered if you are hit by an uninsured or underinsured motorist or are the victim of a hit-and-run. If you do not have coverage, you can sue the uninsured driver that hit you for damages, but that rarely works out. Typically, people who do not carry insurance do not have many assets. Therefore, even if you win, you will be unable to collect damages.  

No matter who is paying an insurance adjuster, it is always their objective to reject claims and cut settlements to the absolute minimum. An experienced New Mexico car accident lawyer knows this, and they know how to fight back. They typically work for a contingency fee, which means there is no upfront or out-of-pocket expense for their services. If they don’t win, you don’t pay. If you were injured in a New Mexico car accident, contact a lawyer for a free consultation today.