New Mexico Car Accident Settlement Process and Timeline

New Mexico is an at-fault insurance state. If you're involved in an auto accident, you must sue the other driver to pay for your medical treatment and other damages. The insurance companies investigate claims, and the at-fault driver pays for all claims in the accident.

Filing a car accident claim is the first step in settlement negotiations. Most car accident cases are simple, but consult a personal injury attorney before sending your insurance claim. This way, you ensure you've sent all documents necessary to get the maximum compensation you deserve after your accident.

New Mexico Car Insurance Laws

As an at-fault state, New Mexico requires all drivers to carry minimum liability insurance to cover the other driver's claims in case of a personal injury lawsuit. This coverage does not protect you. It protects you from paying out-of-pocket for the other driver's claims in a personal injury case.

New Mexico's mandatory minimum insurance requirements include liability insurance of at least:

• $25,000 for bodily injury or death of one person
• $50,000 for bodily injury or death per accident
• $10,000 for property damage per accident

Or a $60,000 surety bond or cash deposit with the New Mexico Department of Treasury.

New Mexico does not require uninsured/underinsured motorist insurance (UI/UIM), which gives you a payout if you have an accident with a driver who doesn't have insurance. Most insurance companies recommend this type of insurance today.

Do I Need to Report a Car Accident in New Mexico?

New Mexico's accident reporting requirements require an oral report to local law enforcement, as well as a written one, whenever:

• The accident resulted in an injury to a person
• Where there is property damage of $500 or more

You should report the accident regardless of the amount of damage because you will need the incident number for your insurance claim. You can get the number through the state police after a certain time, usually 10 days. You must file a written report with the New Mexico Department of Transportation within five days.

You must notify your insurance company according to your policy, usually within 30 days of the accident.

How Car Accident Settlements Work in New Mexico?

Most car accident cases never go to trial. Settlement agreements are faster, less expensive, and usually result in better outcomes for all parties. In most cases, the attorneys and insurance companies agree to avoid litigation in exchange for paying expenses and a release of fault for the at-fault party.

The settlement process begins with a demand letter. Your attorney must send a formal request for payment to the other party's insurance company to start the negotiations. You will need to show proof of medical expenses, lost wages, and other evidence for your attorney to get a reasonable recovery.

There is no "average" accident settlement. For example, a fender bender causes less injury and property damage than a street racer who crashes into a coffee shop. The more important consideration is the damages in your case — no other case is like it.

To determine a fair settlement amount in your case, the parties and their attorneys will likely consider:

• The amount and evidence of fault and damages
• Insurance coverage (insurance companies won't pay more than policy limits)
• Car repairs
• Medical bills (past and future)
• Pain and suffering
• Lost wages from time away from work

Settlement vs. Trial

When car accident cases go to trial, it is usually because the attorneys or insurers can't agree on who was at fault or there are other costs besides medical bills. Insurance companies may not agree to pay out-of-pocket expenses or for serious injuries that require long-term physical therapy. You may also have "non-economic damages." Ordinary settlements do not cover pain and suffering, emotional distress, and other costs. You must go to trial to get this compensation.

How Long Do I Have to File a Car Accident Lawsuit in New Mexico?

Like all states, New Mexico has time limits (Statutes of Limitations) for filing a legal case. You have three years from the date of the accident for personal injury claims and four years for property damage.

Statutes of limitations are strict deadlines. They are not extended for pending insurance claims unless your attorney has filed other legal documents. Speak to an attorney early to ensure you still have time to file a lawsuit.

Get Legal Advice from a New Mexico Personal Injury Lawyer

A car crash can leave you with medical bills and serious injuries. Accident victims need legal advice and help from an experienced New Mexico car accident attorney to help with insurance claims and settlement offers.