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New Mexico Personal Injury Cases and the Economy

Posted in Auto Accidents

To what extent does the economy effect New Mexico personal injury claims? One theory is that injuries are related to economic activity-the more economic activity, the more injuries will occur. This is because economic growth produces construction, the use of roads, increased shopping, eating out, etc., which increases the numbers of accidents.

Personal Injury lawyers are in disagreement about the effects of an economic downturn. A large number of personal injury cases arise from automobile use, and past recessions have shown that American’s driving habits are somewhat “inelastic,” meaning that people drive about the same amount, regardless of the overall economic situation. So, in economic hard times, people are on the road about the same amount as in good times.

Another factor complicating how to judge the relationship between economic growth and personal injury litigation is the lag between the injury, itself, and when lawyers become involved. After an injury, the first priority is undergoing medical treatment. Often, a New Mexico personal injury claimant will need to finish medical treatment before being able to evaluate his/her case. A period of negotiation may then follow, so that lawyers may not become involved for some time after the initial accident.