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Uninsured & Underinsured Driver Accidents

Uninsured & Underinsured Driver Accidents

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.

Contact us at (505) 219-2176 or fill out our online form to schedule a free case consultation today.

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