Car accident settlement values are something you should familiarize yourself with if you were recently involved in a crash in New Mexico. It is important not to automatically trust the value placed on your claim by an insurance company. Since insurance corporations put their own profits first, it may not be accurate. Understanding how settlement amounts are determined can help you fight for a fair case result.
An Albuquerque car accident lawyer from The Fine Law Firm can help you understand how settlement values are determined, ensuring you aren’t taken advantage of by insurance companies and helping you fight for a fair outcome based on the full extent of your damages.
Injury Severity
The level of injury suffered by the car accident victim can make a major impact on the value of the claim. In general, severe to catastrophic injuries cause greater losses to the victim in terms of medical expenses, pain and suffering, lost wages, and potential disability accommodations. This means that these injury cases tend to result in greater financial compensation being awarded to the victim. Injuries that do not heal quickly or that will cause long-term or permanent damage can increase the value of a settlement.
Associated Costs
The goal of a car accident claim is to make the victim financially whole again by providing compensation for related losses. The amounts of these losses can impact settlement value. Common associated costs include:
- Hospital bills
- Travel or transportation
- Property damage repairs
- Rental car costs
- Legal fees
- Out-of-pocket expenses
These are known as economic losses, also called specific or tangible damages. Keeping all bills and receipts from the car accident can help the victim seek a fair settlement for full reimbursement.
Insurance Policy Limits
The value of an insurance settlement will always be subject to the limits of the policy. The required amount of car insurance in New Mexico, for example, is $25,000 for bodily injury or death to one person. If medical bills total $30,000, only $25,000 would be covered by a minimum policy.
Note that it may be possible to recover compensation beyond the limits of an insurance policy through a car accident lawsuit. A lawsuit can be filed against one or more parties outside of insurance coverage alone.
Comparative Negligence
New Mexico’s comparative negligence law can impact the value of a settlement by placing a portion of the blame on the victim. In New Mexico, a victim can share fault and still receive compensation from the other party. However, the value of the settlement will be diminished by a matching percentage.
Punitive Damages
Some car accident cases in New Mexico are worth more due to the addition of punitive damages. Punitive damages are awarded in cases where a defendant is guilty of serious acts of wrongdoing, such as driving under the influence of alcohol. It is an additional amount meant to penalize the defendant and discourage such behaviors in the future.
How to Maximize Your Car Accident Settlement in New Mexico
The initial settlement that a car insurance company offers you may not accurately reflect how much your claim is actually worth. Insurers often set first offers low in the hopes that the claimant will not submit a counteroffer. You can avoid making this mistake by getting an accurate case evaluation from a personal injury attorney in Albuquerque, NM before negotiating with an insurance provider. A lawyer can take over settlement negotiations for you to aggressively fight for maximum compensation.