A motor vehicle collision is more than just disruptive and stressful. It is often also incredibly expensive for those who are involved. People who get hurt may have hospital bills and weeks of lost wages to recover. Even the cost to repair a vehicle could far exceed someone’s budget.
Individuals may have a hard time recovering financially after a collision results in significant property damage and/or noteworthy personal injury. Although they might expect that insurance would cover their costs, many motorists in New Mexico find themselves coping with massive expenses that insurance may not fully pay. These are the two primary factors that influence how much insurance will cover for an injured party who is not at fault for a motor vehicle collision.
The coverage of the driver at fault
New Mexico’s insurance rules include requirements for both property damage and bodily injury liability coverage. Drivers have to have at least $10,000 to help repair or replace someone’s vehicle and at least $25,000 to cover lost wages and medical bills if someone gets hurt.
There may be more coverage available for collisions involving multiple people or when a driver invests in additional protection and increases their policy limits. Regardless of how much the crash costs, the company will never pay more than the policy limit of the person at fault for the wreck. If the driver is uninsured, there may not be any coverage at all.
The supplemental coverage they added to their policy
Some people carry additional insurance to protect themselves against not just liability but also from a crash involving someone without insurance or a very bad policy. Uninsured and underinsured motorist coverage are common additions to modern policies that can help pay someone’s expenses after a collision. Supplemental collision or comprehensive coverage, possibly required if someone financed the purchase of the vehicle, could also provide additional resources for the person who didn’t cause the crash but nonetheless suffered losses.
In some cases, those without enough insurance available may need to seek legal guidance as they contemplate a personal injury lawsuit against the party or parties that are at fault for their injurious circumstances. Understanding the limitations of insurance after a New Mexico car crash can help people to more effectively arrange to cover their costs.