Egan Explains: What Happens If Someone Else Is Driving My Car and Gets in an Accident in New Mexico?
Life can be unpredictable, and sometimes you may lend your car to a friend or family member. But what happens if that person gets into an accident while driving your car in New Mexico? Understanding the implications can help you navigate the situation with less stress and more clarity. In this edition of Egan Explains, our New Mexico car accident attorney tackles this common question.
Liability and Insurance Coverage
Your Insurance is Primary
In most cases, your car insurance will be the primary coverage. This means that your insurance policy will be the first to cover the damages caused by the accident. Your liability coverage will pay for the damages to the other party, while your collision coverage will take care of the damages to your car, subject to your deductible.
The Driver’s Insurance as Secondary
If the damages exceed your policy limits, the driver’s insurance may come into play as secondary coverage. This can help cover the remaining costs if the driver has an auto insurance policy that includes liability coverage.
Determining Fault
New Mexico is a comparative negligence state, which means the fault can be shared between the parties involved in the accident. The degree of fault assigned to each party will impact the amount of compensation each party receives. If the person driving your car is found to be at fault, your insurance rates may increase, and you could be held financially responsible for any damages exceeding your coverage limits.
Potential Impacts on Your Insurance
- Rate Increases — An accident, even if caused by someone else driving your car, can lead to an increase in your insurance premiums. Insurance companies often view any claims made on your policy as a risk factor, which can result in higher rates.
- Loss of Discounts — Some insurers offer safe driver discounts or accident-free discounts. An accident can lead to the loss of these discounts, further increasing your insurance costs.
Exceptions and Special Cases
Excluded Drivers
If the person driving your car is specifically excluded from your policy, your insurance will not cover the accident. This means you could be personally liable for all damages, including property damage and medical expenses.
Unauthorized Use
If someone takes your car without your permission and gets into an accident, your insurance may not cover the damages. In such cases, you may need to file a police report and pursue legal action to address the damages.
Steps to Take After the Accident
- Ensure Safety and Call the Authorities — The first step is to make sure everyone is safe and call the police to report the accident. An official police report will be crucial for insurance claims and determining fault.
- Exchange Information — Make sure the driver exchanges information with the other party involved, including names, contact details, insurance information, and vehicle details.
- Notify Your Insurance Company — Contact your insurance company as soon as possible to report the accident. Provide them with all the necessary details, including the police report and any information about the other driver.
- Document Everything — Take photos of the accident scene, vehicle damages, and any injuries. Keep a record of all communications and documents related to the accident.
Conclusion
Lending your car to someone else involves trust, but accidents can happen. Understanding how your insurance works and the steps to take after an accident can help you handle the situation more effectively. In New Mexico, your insurance will generally be the primary coverage, and the driver’s insurance may serve as secondary coverage if needed. Be proactive in managing your insurance policy and ensure that you are fully aware of the terms and conditions to avoid any unpleasant surprises.
If you have any questions about your specific situation or need legal advice, consult with a knowledgeable New Mexico car accident attorney who can guide you through the process and help protect your interests.
Were you or a loved one recently involved in an accident as the passenger? Contact us to request a free consultation with our experienced New Mexico car accident attorney.