After an accident, insurance companies must determine what happened before
they can distribute compensation. States usually fall into one of two
categories when looking at car accidents–at-fault and no-fault.
New Mexico is an at-fault state, meaning funds are distributed for compensation
based on the liability of the at-fault driver. However, much of this system
depends on the at-fault driver having car insurance to cover the damages.
All states require people to carry car insurance in case they get involved
in a car accident. This coverage can help an individual pay for medical
bills, lost wages, and property damage. In New Mexico, every driver must
have a policy that includes $25,000 per person, $50,000 per accident,
and $10,000 for property damage. When people ignore this law and forgo
insurance, they are called uninsured drivers. When people have the bare
minimum insurance coverage, they are called underinsured drivers. Accidents
with any of these individuals often leave other people in the lurch.
For example, let’s say an at-fault driver causes an accident and
doesn’t have insurance coverage. The person in the other car sustains
severe spinal damage that prevents him from ever walking again. If the
at-fault driver has no insurance, the victim of the accident must use
his or her own insurance to pay for medical bills and possibly for lost
wages that could last years. The injured party could sue the uninsured
driver for damages, but this might not yield what he needs if the person
doesn’t have much money in general.
Likewise, an underinsured driver’s insurance will only cover up to
$75,000 for the injured driver’s medical bills. After that, he will
be on his own to pay the difference. If he can no longer work in his regular
job after being paralyzed, he might need more than $1 million over the
course of his life to cover the cost of living without working.
New Mexico currently doesn’t require people to carry uninsured or
underinsured coverage, but it’s always a good idea to include it
on your policy in case you experience an accident with someone who can’t
cover your damages.
If you need help figuring out what to do after a severe car accident, let
us help. Our skilled
Albuquerque car accident attorney is dedicated to helping the victims of negligence seek compensation for
their injuries. Let us see what we can do for you.
at (505) 219-2176 or fill out our online form to schedule a free case consultation today.