What Happens When a Car Accident Claim Exceeds Insurance Limits in New Mexico?
When you’ve been injured in a car accident, insurance is often your first line of financial recovery. But what happens if your damages go beyond what the at-fault driver’s insurance will cover? In New Mexico, navigating insurance limits can quickly become complicated. Understanding your options is essential to protecting your rights and ensuring you’re fully compensated.
Understanding Insurance Limits in New Mexico
Every driver in New Mexico is required to carry minimum liability insurance. As of now, the minimum coverage includes:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $10,000 for property damage
These are known as insurance limits—the maximum amount an insurer will pay for a claim. But if your medical bills, lost wages, or other damages exceed these limits, you may find yourself in a difficult situation.
What Happens When Damages Exceed the Policy Limit?
If your total damages are greater than the at-fault driver’s insurance limits, the insurer will only pay up to the maximum amount allowed under the policy. The rest? That responsibility technically falls on the at-fault driver. Unfortunately, many drivers don’t have the personal assets to pay those additional costs out of pocket.
This can leave injured victims struggling to cover the remaining expenses unless they take further legal steps or have other forms of insurance available.
Options for Additional Recovery
If the at-fault driver’s insurance isn’t enough, you may still have options:
- Underinsured Motorist Coverage: If you carry underinsured motorist (UIM) coverage on your own policy, it may help cover the gap between the at-fault driver’s insurance and your total damages.
- Suing the At-Fault Driver Personally: In some cases, you can pursue a personal judgment against the at-fault driver. However, this is often only practical if they have significant assets.
- Identifying Other Liable Parties: Was another vehicle, employer, or third party partially responsible for the accident? A thorough investigation could reveal additional sources of compensation.
Why Legal Representation Matters
Insurance companies are not always eager to pay, especially when large sums are involved. If you’re facing medical bills, ongoing treatment, and lost income after an accident, an experienced personal injury attorney can evaluate all available options for recovery—within and beyond insurance limits in New Mexico.
Our team can help you understand what you’re entitled to and fight for the full compensation you deserve.
Serving Las Cruces and the Surrounding Communities
At the Law Offices of Kenneth G. Egan, we have decades of experience handling complex personal injury cases throughout southern New Mexico. We are located in Las Cruces and are proud to serve the surrounding areas, including Doña Ana, Santo Tomas, La Mesa, Fort Selden, Radium Springs, and beyond.
If your accident claim is more than what the insurance policy covers, don’t wait. Reach out today to schedule a free consultation.