This is how car accident injury compensation works in New Mexico:
New Mexico’s personal injury laws allow negligently injured people to seek compensation from liable ones. In many car accident injury cases, the financially liable party is the at-fault party’s auto insurer. Insurers must reasonably settle covered claims, negotiable, before accepting and signing a settlement agreement if unreasonable.
Here is the statute that requires them to do this:
NMSA § 59A-16-20 states that liability insurers may NOT:
“…settle a claim by an insured for less than the amount to which a reasonable person would have believed he was entitled…”
You might negotiate a settlement if the insurer did not pay your claim reasonably, which is challenging to determine without legal advice from an experienced lawyer in New Mexico. We evaluate accidents, negligence, liability, economic, non-economic, and, while rare, punitive damages, among other elements, so that our clients make informed decisions.
Many cases resolve during the settlement negotiation phase and never see the inside of a courtroom. If negotiations fail and insurers have not paid a reasonable amount, your attorney may recommend filing a bad faith lawsuit against them. We will also help you evaluate the cost versus benefit when determining if civil litigation makes sense.
In this article, personal injury lawyer, Marc A. Grano, offers legal information about how car accident injury compensation works in New Mexico. He concludes by sharing how you can get legal advice about any issues you are experiencing in a no-cost, confidential setting.
Civil Damages for NM Car Accident Injury Claims
“Civil damages” refers to the amount of compensation you are claiming the insurance company owes you. Three types of claimable civil damages for personal injuries are economic, non-economic, and punitive. They will determine how much your New Mexico car accident injury case is worth when added together.
Below, we have offered a quick overview of how each type works:
- Economic damages: Measurable, direct losses. More straightforward to estimate since objective. They pay for medical costs, lost wages, lost benefits, future medical care, physical therapy, prosthetics, medical devices, accessibility modifications, prescription drug costs, and other out-of-pocket expenses.
- Non-economic damages: More challenging to calculate since they include emotional, physical, and subjective losses. Experts, like economists, may testify to support your claim with proof of pain and suffering damages. Examples of non-economic damages include pain and suffering, PTSD, depression, lost enjoyment of life, and mental anguish.
- Punitive damages (rare): Reserved for victims of gross negligence. Punitive damages are granted to personal injury plaintiffs by judges that determine it is reasonable to “punish” the liable or at-fault parties.
Timing of a Car Accident Injury Claim
Car accident injury settlements generally take a few months to a few years (if in litigation) to resolve. Taking your insurer to civil court could further extend this period. Negotiating a fair and equitable out-of-court settlement with the assistance of your attorney could take just as long, especially when claiming severe or catastrophic injuries.
New Mexico Laws on Timing Injury Claims
Insurers do not adhere to time limits when resolving accident-related injuries in New Mexico. Under the same statute, they must respond to your claim “reasonably promptly.” Continued violations of this standard may give rise to additional civil damages.
Factors Affecting Car Accident Injury Settlements
The timing of your specific claim will depend on several factors, including but not limited to the following:
- Party liability: More parties involved may equal more coordination and time, especially when unclear
- Degree of negligence: Insurers might argue you were partially at fault, requiring additional evidence to challenge when untrue
- Eyewitness availability: Eyewitness testimony may be a very important part of the case assessment.
- The severity of injuries: Catastrophic injuries take significant time to heal
- Medical prognosis: A physician will determine your future outlook and will offer an opinion, which can only happen after reaching maximum improvement
Civil Deadlines Also Apply
According to NMSA 37-1-8, you have three years from the date of your accident injury to file a claim against your insurer. It is a significant period, but ensure you use it wisely. However, most cases are settled out of court during negotiations or pre-trial.
Insurers will use deadlines to their advantage when allowable under law. Physical evidence degrades, and eyewitnesses may not remember the accident details so readily. It is also worth noting the other civil deadlines may apply to your claim and could be much shorter than the general deadline.
If you want a fair and reasonable outcome, avoid letting the passage of time affect your decision. Contacting a lawyer when you are physically injured may seem like a lot of trouble. However, not protecting your case early could lead to unintended consequences.
Responding to a Low Car Accident Injury Compensation in NM
Think your injury settlement offer is too low? Here are five steps for how to respond to a low personal injury settlement offer after a car accident:
1. Get Legal Advice
Schedule a case evaluation with a personal injury attorney in New Mexico. It is a free and confidential opportunity to learn more about your legal rights and options. If you have a negotiable claim, we send a letter of representation to the insurance company, notifying them to negotiate directly with our office. At Grano Law Offices, P.C., you do not owe us any payment unless you win.
2. Understand Your Initial Settlement Offer
A represented client can better understand the legal issues surrounding their first settlement offer. An attorney can point out where you might want to negotiate an increase. Our findings and information will help you make legal decisions that align with your objectives.
3. A Demand Letter Initiates Negotiations
Your attorney will reject the low settlement offer in writing and issue a new settlement demand. The letter states the facts of your case, the applicable laws that the insurance company is violating by failing to pay you a reasonable amount, the amount owed to you, and a response deadline. Insurers must respond by a specific deadline.
4. Reject or Accept
Car accident injury claimants are usually overwhelmed by medical bills and lost wages. As such, you may feel obligated to accept a lower amount. Get legal advice before accepting since your attorney may have a solution, including letters of protection. The options available afford more time to negotiate.
5. Civil Court (Rare)
Remember that you can accept or reject an offer until it meets your criteria for a fair settlement. The insurance company may make every effort to pay as little as possible. On the other hand, your case could be a great candidate for civil action. You may sue the insurance company for damages owing to bad faith and unfair dealing in addition to collecting damages related to your injury settlement.
The filing of a civil complaint in court is usually not as common since the cost of litigation may outweigh the potential benefit in many cases. However, going to court is always an available option depending on the reasonableness of the settlement offered by the adjuster. Your personal injury attorney will also help you manage this aspect of your case before the applicable statute of limitations under NMSA 37-1-8.
How to Get a Free Case Evaluation
We covered many generalities in this article. However, personalized legal advice from a car accident injury attorney, at no cost or obligation, could provide you with information specific to your situation in a no-pressure setting. This information could help you understand why your settlement offer feels “too low” and how representation could add value to your case.
Call Grano Law Offices, P.C.
Grano Law Offices, P.C. is an experienced personal injury law firm serving northern and central New Mexico. We focus significant resources on negligent car accident injuries to make the process as efficient and effective as possible for injury victims. If we can improve your experience in any capacity, our legal team will strive to fulfill your needs.
Before deciding how we could help, schedule a Free Case Evaluation at (505) 426-8711 or message us via the contact form below. If you are too injured to travel, we can meet at your preferred location or via secure video conferencing No attorneys’ fees until you win!
