Why Some Car Accident Lawsuits Go to Trial Instead of Settling in NM

Most car accident cases in New Mexico settle long before they reach a courtroom. Insurance companies prefer settlements because trials involve more time, more expense, and more risk. Victims often prefer settlements for the same reasons. But not every case can be resolved through negotiation. Understanding why some car accident lawsuits go to trial instead of settling can help you prepare for the process and protect your rights after a serious crash.

Settlement Is the Most Common Outcome

In a typical car accident claim, the injured person and the insurance company negotiate compensation for medical bills, lost income, pain and suffering, and other damages. Most of these negotiations lead to settlement agreements.

However, when disputes arise over fault, injuries, or compensation, the case may need to go to trial. A trial allows a judge or jury to hear the evidence and decide the outcome based on New Mexico law.

Reason One: Disputes Over Fault

Fault is one of the most common reasons a car accident lawsuit goes to trial. Insurance companies may argue that the victim caused or contributed to the crash. They do this because New Mexico follows pure comparative negligence. This law reduces compensation based on the victim’s percentage of fault.

For example, if an adjuster claims you were 40 percent at fault, your compensation would be reduced by that amount. If the dispute cannot be resolved through negotiation, a trial may be necessary to determine fault.

Reason Two: Disagreements About the Severity of Injuries

Insurance companies often challenge the seriousness of injuries, especially when the medical treatment is extensive. They may argue that:

  • The injuries are not as severe as reported
  • The injuries are preexisting
  • The treatment was unnecessary or unrelated
  • Recovery should have been faster

When medical records, imaging results, and expert evaluations show a clear injury but the insurer still refuses to acknowledge it, a trial may be needed to prove the full extent of harm.

Reason Three: Low or Unfair Settlement Offers

Even when fault is clear, some insurers offer settlements that do not cover medical bills, lost wages, or future care. This is common when:

  • The policy limits are low
  • The accident resulted in long-term disability
  • Pain and suffering damages are significant
  • The insurer is trying to close the claim quickly

When settlement offers do not reflect the true impact of the accident, filing a lawsuit can lead to a fair result.

Reason Four: Disputes About Long-Term or Future Damages

Some injuries require months or years of recovery. Others cause permanent limitations. In these cases, a fair settlement should include compensation for:

  • Future medical care
  • Long-term rehabilitation
  • Loss of earning capacity
  • Permanent disability
  • Future pain and suffering

If the insurance company disagrees about future needs or refuses to consider long-term effects, trial becomes more likely.

Reason Five: Complex Accidents With Multiple Parties

Accidents involving commercial vehicles, multiple drivers, pedestrians, or motorcycles often lead to complicated claims. Each party may have separate insurance companies and lawyers. When the parties disagree on liability or damages, trial may be required to sort out who is responsible.

This is common on major routes through Southern New Mexico such as I-10, I-25, and Highway 70, where multi-vehicle crashes occur more frequently.

Reason Six: Bad Faith Insurance Practices

In some situations, an insurance company does not negotiate fairly. This is known as bad faith and may include:

  • Ignoring evidence
  • Delaying the claim without reason
  • Refusing to communicate
  • Misrepresenting policy terms
  • Forcing the victim to file suit to get a response

When bad faith occurs, trial may be the only way to hold the insurer accountable.

What a Trial Looks Like in a New Mexico Car Accident Case

If your case goes to trial, it generally follows these stages:

  • Filing the lawsuit
  • Discovery, where both sides exchange evidence
  • Depositions of witnesses, experts, and parties
  • Motions and pretrial hearings
  • Jury selection
  • Trial presentation, including evidence and testimony
  • Jury deliberation and verdict

Trials in New Mexico occur in district courts such as the Third Judicial District Court in Las Cruces. Having a local attorney helps ensure your case is prepared for the courtroom environment in Doña Ana County

Why Many Cases Settle After a Lawsuit Is Filed

Even when a lawsuit is filed, most cases still settle before trial. Filing a lawsuit can:

  • Pressure the insurer to negotiate
  • Allow access to stronger evidence through discovery
  • Bring expert testimony into the case
  • Clarify the value of the claim

Only a small percentage of cases make it all the way to a courtroom verdict.

How Egan Law Offices Helps

At Egan Law Offices, we handle both settlement negotiations and trial litigation for car accident victims in Las Cruces and Southern New Mexico. Our firm prepares every case thoroughly, which strengthens negotiations and ensures readiness for trial if needed.

We investigate the accident, gather medical evidence, work with experts, and pursue the compensation you deserve. Whether your case settles or requires a trial, we are prepared to advocate for you at every step.

Talk to a Las Cruces Car Accident Attorney Today

If you have been injured in a car accident and are unsure whether your case may go to trial, contact Egan Law Offices today. We can explain your options, evaluate your case, and guide you through the process under New Mexico law.