Frequently Asked Questions About Injury and Disability
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The Top 5 Questions Answered on What Happens After Settling a Personal Injury Case in New Mexico?
Finally… it happened. Your case has been settled. What a relief. But now what? You’ve already figured out by now few things happen quickly in the legal world, but you want to know what to expect next, how long will it take, what has to be paid out, and more. So, let’s jump in and tackle the five most frequently asked questions we get in our New Mexico personal injury practice.
When Will I Receive My Settlement Funds?
We are leading off with the most frequently asked question we get about what happens after a settlement. Hey, I get it…everything you have been fighting for has come down to this – when will I actually get my money.
After settling your case, the timeline for receiving your settlement funds typically ranges from a few weeks to a few months. Here are the main factors that impact this:
- Paperwork Processing: Once a settlement is reached, you will be required to sign a release of liability, preventing you from pursuing further legal action related to the incident. Depending on the complexity of your case this can be straightforward or quite complicated and contentious. For smaller claims, the release should only take a couple days at most, and often times it can be done same day as the settlement is reached. For larger claims, it can take weeks, if not longer.
- Insurance Company Payment: Once the release is finalized and you sign it, the insurance company will process the payment, which can take several weeks. Insurance companies may also require additional documentation before releasing the funds such as lien handling instructions and other issues related to the settlement proceeds. More on that below.
- Deposit Into Trust Account: When your check is mailed out from the insurer it will be sent to your attorney. The check will be made out to your attorney’s firm and to you personally. That check will be endorsed (signed) by you personally and your attorney. It will then be placed in your attorney’s trust account where it will typically take three to five business days to clear. This is required by law. Once the check clears, the money can be disbursed. But that leads to our next bullet point.
- Lien Resolution: Any outstanding liens (e.g., medical liens) need to be resolved before you receive your portion of the settlement. Of all the variables, this step is the one most likely to delay when you receive your money. But the delay is worth it because you or your attorney can often use beneficial laws to obtain reductions (this is a good reason to hire an attorney) which puts more of your settlement money in your pocket.
Once the check clears, and your attorney has resolved all the liens and bills, you will get your check. Obviously, there can be other factors involved, but these are the primary issues impacting the timing of when you get your money.
In general, for smaller claims, I would plan on it taking about three to four weeks after your settlement to have your money in your hands. For more complex claims, plan on it taking longer.
How Are Medical Bills Paid?
After settling a personal injury case, one of the most pressing concerns is understanding how your medical bills will be paid.
What Should I Know About Paying My Medical Bills?
Once your personal injury case is settled, the responsibility for paying your medical bills shifts to you. Your settlement funds are paid to you to cover these expenses, but there are different methods and sources of payment depending on your specific circumstances. The goal is to use every resource available to find the best way to maximize the amount you get to keep.
Can I Use My Med Pay to Cover My Medical Bills?
Yes, Med Pay (Medical Payments coverage) is a valuable resource for covering medical expenses after an accident. If you have Med Pay as part of your auto insurance policy, it can be used to pay your medical bills regardless of who was at fault in the accident. That is one of the benefits of Med Pay – it is no fault insurance. Your attorney can help review your own auto insurance policy to determine if you have Med Pay coverage or other coverage that might be beneficial.
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- Example: If your medical bills total $12,000 and you have $10,000 in Med Pay coverage, Med Pay will cover $10,000 of your expenses, leaving you with only $2,000 to pay.
(Note – Med Pay may want to be reimbursed though so keep that in mind)
How Does Health Insurance Factor In?
Health insurance can cover your medical bills, but if your health insurance has already paid for your treatment, they may seek reimbursement from your settlement. This is known as a lien, and it allows your health insurance provider to recover the costs they paid on your behalf.
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- Example: If your health insurance paid $15,000 for your medical care, they might place a lien on your settlement to recover that amount. Your attorney can often negotiate with the insurance company to reduce the lien amount, potentially allowing you to keep more of your settlement.
Why you should use your health insurance to
pay your medical bills if possible
Do I Need to Pay My Medical Providers Directly?
If you have outstanding medical bills that weren’t covered by health insurance or Med Pay, you will need to pay these bills from your settlement. Your attorney can assist by negotiating with medical providers to try to reduce the amount you owe, ensuring that you maximize the funds you retain from your settlement.
Getting the medical bills paid out of a settlement is always the priority so you don’t have any lingering debts owed. But the best way to get those paid will very for each case based on the types of medical treatment received, the availability of insurance, and even the location can impact the strategy you should use.
What Are Liens, and How Do They Affect My Settlement?
You will often hear the term lien used in a personal injury case. Liens are legal claims that health insurers, Medicaid, Medicare, hospitals, and some medical providers can place on your settlement to recover the costs of your medical care. Technically, some of these entities don’t have a lien in the true legal sense, but they do have a right of subrogation (or a right of reimbursement in some situations). The term “lien” gets used more broadly to refer to a situation in which a medical insurer or entity has a legal right to part of your settlement for medical services provided or paid for on your behalf.
Liens are a big deal and must be dealt with. They can’t be ignored.
These liens must be resolved and paid out of your settlement before you can receive the remaining settlement funds. The good news is that there are provisions in the law that your attorney may be able to use for your benefit in negotiating the resolution of these liens to your benefit. The goal is to maximize the amount you get to take home after paying everything you owe, and reducing liens is an important tool in that process.
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- Example: If Medicaid pays $10,000 of your medical expenses, they will place a lien on your settlement to recover that amount they paid on your behalf. Remember, the insurance company is paying you money that is to be used to pay your medical bills. If you get paid by the insurance company for the medical bills that Medicaid paid for you, then the settlement money has to be used to reimburse Medicaid. Your attorney will try to negotiate to reduce the lien, ensuring you retain as much of your settlement as possible.
What If My Settlement Doesn’t Cover All My Medical Bills?
We often talk of the great outcomes on personal injury cases, but the reality is that there are times when the available insurance and settlement recovery does not cover all the bills.
If you can prove someone acted negligently and that as result of that negligence you suffered damages, then that person is legally liable for your damages, which can include medical bills, lost earnings, pain and suffering, and more. In other words, the key language is “legally liable”, which is not the same thing as damages that you will collect on.
Here is why “legally liable” differs from “how much you can collect.”
Outside of very rare circumstances, how much of your damages you can recover will be based upon the availability and sufficiency of insurance. Yes, it is true, you can sue someone and there are means for trying to collect a judgment ordered against someone, but it is very difficult (closer to almost impossible if you are seeking damages from an individual) to ever collect on that judgment because each state has laws that restrict what assets you can go after to satisfy a debt.
Thus, how much you may recover in a personal injury claim will be largely impacted by insurance. Specifically, by 1) the availability of insurance and 2) the sufficiency of insurance. Some people make the mistake to believe that just because someone has insurance, that insurance will pay for all your damages. That is incorrect. The insurance will pay for a claim the policy covers, but only up to the policy limits.
The question then, is what you do if you find yourself in this unenviable position of more damages than available insurance. Don’t panic, because there are some strategies you can use to try to improve your outcome.
Use Your Health Insurance to Pay Your Medical Bills
If you have health insurance, Medicaid, or Medicare you should use it to pay your medical bills. Insurance companies often have contract rates that will pay a lower amount than what was billed to you. That alone will help significantly. Watch my video here for a more in-depth explanation. Link.
While you do still have to reimburse your health insurance for what they paid out, there is favorable case law in most states, including New Mexico, called the made-whole doctrine that allows you to negotiate down what you have to pay back to your health insurance if the person that hit you didn’t have enough insurance to cover your damages.
This is by far the best way to avoid owing money to medical providers if your settlement isn’t enough to cover your medical bills.
Helpful tip: Use your health insurance to pay the medical bills right away. Don’t wait until the end of your case and then attempt to have them paid. Some health insurers have deadlines for when bills must be submitted for payment and if you wait too long you could be denied for untimely submission.
Negotiate with Medical Providers
If using health insurance is not an option for you, consider negotiating directly with medical providers. Many offer self-pay discounts that can reduce the bills by as much as 50%. Most medical providers are willing to be reasonable, but it will greatly help your chances if you are honest and show a desire to work with them to make sure they get paid. It can also be helpful to communicate the circumstances that led to the unpaid bill.
Whether you are working with a medical provider directly or with a collection agency, you can also consider offering a payment plan to pay off your bill over time. This takes some of the financial pressure off you and helps the provider start to recover some of the amount owed.
Look to Your Own Auto Policy – Uninsured/Underinsured Motorists, Med Pay, PIP
If your injuries are a result of an auto accident, you should also look at your own auto policy to see whether some of your coverage could help. Here are the coverages that would provide the most help if you are in the situation of insufficient insurance as a result of an auto accident.
- Uninsured/Underinsured Motorists (UM/UIM) Coverage – provides coverage to you if someone injures you and they don’t have enough insurance to cover your damages. This coverage is your best bet for helping in the situation of insufficient insurance. I made a short video explaining the importance of carry UM/UIM coverage which you can watch here. (Insert link to UM video).
- Medical Payments (Med Pay) – This helps pay your medical bills if you’re injured in a car accident, regardless of who is at fault. It is optional coverage.
- Personal Injury Protection (PIP) – This is similar to med pay but it offers even more coverage because it will not only pay for your medical care, but it will cover your lost wages, and other related expenses.
Look for Additional Policies from the Other Driver
It is not uncommon for some insured drivers to carry multiple insurance policies. For example, some might have auto insurance with difference carriers such as State Farm or Allstate depending on the vehicles they have. Additionally, some may carry an umbrella policy that might be an option.
You can find out if they have other policies through a lawsuit, but that may not appealing to you just to find out if they have more coverage.
Alternatively, one helpful way of ensuring they don’t have additional insurance coverage is by obtaining an affidavit from the negligent driver through their insurance. If their insurer is offering their policy limits, you could ask the insurer to have their insured provide an affidavit swearing no other insurance coverage.
Evaluate Other Claims
As part of evaluating your personal injury claim, you should consider all contributing factors to an accident. For example, was there a contributing factor beyond just the other driver's negligence? If there were other motorists involved, consider whether they had any comparative fault. Additionally, consider whether the conditions of the roadway played a role, or maybe even the signage. These are tougher claims to prove but as part of your evaluation of your claim, you want to consider all contributing factors.
Conclusion
You can and should consider each of the steps outlined above. The great majority of the times, these steps will ensure you are not left with medical bills to pay even if your settlement is less than your medical bills.
What Has to Be Paid out of My Personal Injury Settlement (How much am I getting?)
I have often said the biggest mistake personal injury claimants make is focusing solely on the settlement amount. The settlement amount is only half the equation. The other half of the equation, and equally important, is what must be paid out of the settlement. The settlement amount, combined with what must be paid out, combine to give you your take home amount (the amount you walk away with after all bills and expenses have been paid). The take-home amount is the most important number you should focus on and, ultimately, is the only number you should care about.
Here is the equation:
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- Settlement amount - Amount paid out = Client Take Home Amount
- Example: $25,000 Settlement - $10,000 Expenses = $15,000 to the client
There are three main expenses that must be paid from your settlement:
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- Legal Expenses
- Medical Bills
- Liens
To best demonstrate how these expenses work, let’s use a fact pattern that will provide an example we can use to show how each of these works.
Facts: You were in a car accident caused by a negligent driver. You suffered injuries that required an ER visit, some physical therapy, and a visit to your primary care doctor. You had medical bills of $6,000. You hired an attorney who obtained a $15,000 settlement for you.
Legal Expenses
Under the category of legal expenses, you will typically see three numbers: the attorney fees, the sales tax on attorney fees, and the case costs.
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- Attorney Fees: If you have had the assistance of an attorney, you will pay a contingency fee that you agreed to when you hired the attorney. That fee is often a one-third contingency fee (33.33%) of your total recovery. That means that you will owe one-third of your settlement amount.
- Sales Tax (Gross Receipts Tax) on Attorney Fees: You will have to pay the state sales tax on the attorney fees. That tax does not go to the attorney but is paid to the state for the sales tax on the legal services. It tends to be around 7-8% of the amount of your attorney fees (not the amount of your settlement).
- Legal Costs: You will owe the attorney costs on the case. These are the expenses your attorney has paid out of pocket for you in the prosecution of your case. This will typically be expenses like costs of obtaining medical records/bills charged by medical facilities, expert witness fees (if your case required hiring expert witnesses), court costs, and any other expense where your attorney paid an expense for you to prosecute your case. These are different from attorney fees.
- Attorney Fees: If you have had the assistance of an attorney, you will pay a contingency fee that you agreed to when you hired the attorney. That fee is often a one-third contingency fee (33.33%) of your total recovery. That means that you will owe one-third of your settlement amount.
Medical Bills
Your medical bills for treatment related to your accident, must be paid from the settlement. In some situations, your health insurance (or some other insurance) may have paid some or all your medical bills. Any medical bills that have not been paid (i.e. they are outstanding), must be paid out of the settlement.
Liens / Subrogation / Reimbursement
Liens are legal claims that health insurers, Medicaid, Medicare, and some other insurance providers can place on your settlement asserting a right to be reimbursed out of your settlement proceeds for expenses paid out on your behalf.
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- Example: Your health insurer Blue Cross Blue Shield paid your ER bills for your hospital, radiology, and ER physician treatment. Your health insurance also paid for your physical therapy. The total amount paid out by your health insurance was $3,000. (Remember your health insurance often pays a contract rate so it will usually be less than the amount charged to you by the medical provider). Thus, the health insurance has a lien for $3,000 that you must pay out of your settlement.
In most situations, your attorney can negotiate a reduction with the lienholder to reduce what you must repay. A one-third reduction is often achievable.\
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- Example: Your attorney secured a $1,000 reduction off the $3,000 lien amount, reducing your lien amount down to $2,000.
Now that we know all the amounts that must be paid out, we can calculate your take-home amount. Your distribution would look like this:
Settlement Amount: $15,000.00
Legal Expenses
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- Attorney Fees: $5,000.00
- Sales Tax: $350.00
- Case Costs: $125.00
- Total Legal Fees: ($5,475.00)
Medical Expenses
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- Primary Care Doctor ($200.00)
Liens
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- Blue Cross Blue Shield: ($2,000.00)
- Total Amount Paid out of Settlement: ($7,675.00)
- Money to Client: $7,325.00
In this small hypothetical, you can see exactly what your expenses were and the specific breakdown of the settlement funds. The client would receive a check for $7,325.00. Nothing else must be paid out of that amount.
That is the client's take home amount.
While each case will differ, these are the same categories of expenses in almost every case, so you can use this sample to understand what must be paid out and more importantly, calculate how much you will receive.
Our New Mexico Personal Injury Attoneys Are Here For You
There you have it… the five most frequently asked questions about what happens after a personal injury settlement answered. I have written longer answers about each of these FAQ’s and posted them to our website if you want even more information about one of these questions.
Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you if you have any questions about these topics or any other issues after an accident. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.
- Paperwork Processing: Once a settlement is reached, you will be required to sign a release of liability, preventing you from pursuing further legal action related to the incident. Depending on the complexity of your case this can be straightforward or quite complicated and contentious. For smaller claims, the release should only take a couple days at most, and often times it can be done same day as the settlement is reached. For larger claims, it can take weeks, if not longer.
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How Are Medical Bills Paid After a Car Accident Settlement?
One of the most stressful parts of a car accident or any personal injury claim is the medical bill expenses. It makes sense then that one of the most common questions we get is how the bills will be paid out of the recovery. With every client we represent, this is always the first goal – to make sure there is no lingering financial debt resulting from the accident.
This FAQ will guide you through the process of understanding how medical bills are handled after a settlement.
What Should I Know About Paying My Medical Bills?
Once your personal injury case is settled, the responsibility for paying your medical bills shifts to you. Your settlement funds are paid to you to cover these expenses, but there are different methods and sources of payment depending on your specific circumstances. The goal is to use every resource available to find the best way to maximize the amount you get to keep. However, it is important to note up front that medical providers must be paid. So, let’s talk about the various options for getting your medical bills paid after a settlement.
Can I Use My Med Pay to Cover My Medical Bills?
Yes, Med Pay (Medical Payments coverage) is a valuable resource for covering medical expenses after an accident. If you have Med Pay as part of your auto insurance policy, it can be used to pay your medical bills regardless of who was at fault in the accident. That is one of the benefits of Med Pay – it is no fault insurance. Your attorney can help review your own auto insurance policy to determine if you have Med Pay coverage or other coverage that might be beneficial.
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- Example: If your medical bills total $12,000 and you have $10,000 in Med Pay coverage, Med Pay will cover $10,000 of your expenses, leaving you with only $2,000 to pay.
(Note – Med Pay may want to be reimbursed though so keep that in mind)
- This is a helpful article from Progressive Insurance explaining Med Pay: https://www.progressive.com/answers/medical-payments-coverage/
How Does Health Insurance Factor In?
Health insurance can cover your medical bills, but if your health insurance has already paid for your treatment, they may seek reimbursement from your settlement. This is known as a lien, and it allows your health insurance provider to recover the costs they paid on your behalf.
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- Example: If your health insurance paid $15,000 for your medical care, they might place a lien on your settlement to recover that amount. Your attorney can often negotiate with the insurance company to reduce the lien amount, potentially allowing you to keep more of your settlement.
Here is a helpful video for why you should use your health insurance to
pay your medical bills if possible: Watch Now
Do I Need to Pay My Medical Providers Directly?
If you have outstanding medical bills that weren’t covered by health insurance or Med Pay, you will need to pay these bills from your settlement. Your attorney can assist by negotiating with medical providers to try to reduce the amount you owe, ensuring that you maximize the funds you retain from your settlement.
Getting the medical bills paid out of a settlement is always the priority so you don’t have any remaining debts owed. But the best way to get those paid will very for each case based on the types of medical treatment received, the availability of insurance, and even the location can impact the strategy you should use. Figuring out the best methods to ensure your maximum take home amount from your settlement is one of the most important roles your attorney can play in helping you. But either way, the bills can’t be ignored and must be paid (or reimbursed) out of your settlement.
Contact Our Experienced Personal Injury Legal Team to Get Your Questions Answered
Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you if you have any questions on paying medical bills after an accident. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to download out my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.
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Can Social Security Disability Payments be Garnished for Back Child Support?
As a legal professional, I often encounter individuals facing complex legal situations, and one common question that arises pertains to the potential garnishment of Social Security Disability payments in cases where there is outstanding child support. Navigating the intersection of Social Security benefits and familial obligations can be confusing.
Can Social Security Disability Payments be Garnished for Back Child Support?
1. What is the relationship between Social Security Disability (SSD) and child support?
Social Security Disability benefits are intended to provide financial assistance to individuals who are unable to work due to a qualifying disability. Child support, on the other hand, is a legal obligation that parents have to financially support their children. When an individual is receiving SSD payments and has a child support arrearage (back child support), questions arise about the potential garnishment of SSD benefits to fulfill this obligation.
2. Is Social Security Disability income exempt from garnishment for child support?
Under federal law, Social Security benefits, including SSD payments, are generally protected from garnishment for most types of debts. However, child support is considered an exception to this rule. Federal regulations permit the garnishment of Social Security benefits to fulfill child support obligations.
3. How does the process of garnishing Social Security Disability payments for child support work?
If an individual owes back child support, the custodial parent or the relevant child support enforcement agency can seek a court order to garnish a portion of the debtor's Social Security Disability payments. The court order will specify the amount to be garnished, and this amount is typically sent directly from the Social Security Administration to the appropriate child support agency.
4. What is the maximum amount that can be garnished for child support from Social Security Disability payments?
The maximum amount that can be garnished from Social Security Disability payments for child support is generally limited to 65% of the individual's total benefit amount. However, there are additional considerations and state-specific regulations that may affect the actual amount subject to garnishment.
5. Can other types of Social Security benefits be garnished for child support?
While SSD payments can be garnished for child support, other types of Social Security benefits, such as Supplemental Security Income (SSI), are generally protected from garnishment. SSI is a need-based program, and federal law prohibits the garnishment of SSI payments for most debts, including child support.
6. Are there any legal remedies or exemptions available to prevent or limit garnishment of Social Security Disability payments for child support?
In certain circumstances, individuals facing garnishment for child support may have legal remedies or grounds for exemptions. Seeking legal advice and representation is crucial to understanding and asserting these rights effectively. For instance, a legal professional may explore the possibility of modifying the child support order based on changes in the debtor's financial situation.
Contact Our Social Security Disability Attorney For Your Consultation
Navigating the complexities of Social Security Disability payments and child support obligations requires a nuanced understanding of both federal and state laws. Individuals facing potential garnishment of their SSD benefits for back child support should seek legal advice to explore their rights, potential remedies, and ways to mitigate the financial impact of such obligations. Legal professionals specializing in family law and Social Security matters, such as an experienced Social Security disability attorney, can provide invaluable guidance tailored to each individual's unique circumstances.
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Will My Auto Insurance Rates Increase if I Use My Insurance After an Accident Where I Was Not At Fault?
No. In New Mexico, we have a statute that prevents insurers from increasing auto rates for no-fault accidents.
As a New Mexico personal injury lawyer, I often encounter clients who are concerned about their insurance rates following an accident, especially if they need to utilize their underinsured motorist coverage. It's a valid concern, considering the financial implications that can arise from an accident, but understanding how underinsured motorists' coverage works and its impact on insurance rates is essential for every accident victim.
What Is Uninsured Motorist Coverage?
Let’s start by clarifying what underinsured motorist coverage is. This type of coverage is designed to protect you if you're involved in an accident with a driver who doesn't have enough insurance coverage to fully compensate you for your damages. In such cases, your underinsured motorist coverage steps in to cover the gap between the other driver's insurance coverage and your damages.
Now, a lot of clients will respond, “great, and then my rates will go up!” I get it. Most of us have experienced insurers raising our rates for any number of reasons, so it’s wise to be asking those kinds of questions. BUT… the good news is – at least in New Mexico—your rates will not go up if you have to use your underinsured/uninsured motorists coverage in an accident where you were not at fault.
In the state of New Mexico, one of the fundamental statutes that governs insurance rates for no-fault accidents is NMSA 59A-17-7.1. Let's delve deeper into this statute and explore its implications for accident victims in the state.
NMSA 59A-17-7.1, commonly referred to as a "No Fault Accident" statute, serves as a safeguard for consumers against unjustified rate increases by insurance companies in the event of accidents that are not the fault of the insured. This statute explicitly prohibits insurers from raising insurance rates for an insured solely based on their involvement in a no-fault accident. Here is that statute:
59A-17-7.1. Motor vehicle liability; not at-fault accidents.
A. The rates of a motor vehicle liability insurer shall not provide for an increase in the premium if based upon an accident in which the insured is not at fault in any manner as determined by either the accident report or the insurer. If the insurer determines that its insured is at fault contrary to the specific finding of an accident report that the insured is not at fault, the insurer shall reach its conclusion only after an investigation.
B. A motor vehicle liability insurer shall not cancel, or use as a basis for nonrenewal, an insurance policy if such cancellation or nonrenewal is based upon an accident in which the insured is not at fault in any manner as determined by either the accident report or the insurer. If the insurer determines that its insured is at fault contrary to the specific finding of an accident report that the insured is not at fault, the insurer shall reach its conclusion only after an investigation. NMSA 59A-17-7.1
Learn more on the full statute here: 59A-17-7.1. Motor vehicle liability; not-at-fault accidentsHow does this statute apply to the utilization of underinsured motorists coverage following an accident that was not the insured's fault?
Protection for Consumers: The primary purpose of NMSA 59A-17-7.1 is to shield consumers from unwarranted rate hikes resulting from accidents beyond their control. By preventing insurance companies from penalizing insured individuals for no-fault accidents, the law aims to uphold fairness and transparency in the insurance industry.
Scenario Example:
Consider a scenario where Sarah, a resident of New Mexico, is involved in a car accident caused by a negligent driver who ran a red light. Despite Sarah's diligent driving and adherence to traffic laws, she sustains significant injuries due to the other driver's reckless behavior. Fortunately, Sarah has underinsured motorists coverage as part of her insurance policy to mitigate the financial burden of the accident.
In Sarah's case, NMSA 59A-17-7.1 ensures that her insurance company cannot increase her rates solely because she was involved in a no-fault accident. Despite utilizing her underinsured motorist's coverage to cover the gap in insurance coverage, Sarah is protected by the statute from facing unjustified rate hikes as a result of the accident.
Contact Our Experienced New Mexico Personal Injury Attorney For Help Today
NMSA 59A-17-7.1 serves as a vital protective measure for consumers in New Mexico, preventing insurance companies from raising rates for no-fault accidents. Understanding the implications of this statute and seeking legal guidance when necessary are essential steps for accident victims to ensure fair treatment and protection of their rights.
If you have any further questions or concerns about underinsured motorists coverage, insurance rates, or your legal rights following an accident, please don't hesitate to reach out.
Our dedicated and experienced personal injury team here at The Injury and Disability Law Center is here to help you. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.
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What Do The Two Numbers On My Auto Policy Limits Mean? (ex. $25,000 / $50,000)
I understand that deciphering auto insurance policy limits can be a daunting task for individuals involved in accidents. It's crucial to comprehend the nuances of these limits to ensure you receive fair compensation for your injuries and damages. I'll break down the intricacies of auto insurance policy limits, focusing on common formats like 25,000 / $50,000 limits, prevalent in New Mexico.
Understanding Policy Limits
Auto insurance policy limits are the maximum amount an insurance company will pay for covered losses in an accident. They typically consist of two numbers separated by a slash, such as $25,000 / $50,000. These numbers represent different aspects of coverage:
- Per Person Limit: The first number signifies the maximum amount the insurance company will pay for injuries sustained by one individual in an accident. In the example $25,000 / $50,000, this limit is $25,000 per person.
- Per Accident Limit: The second number denotes the maximum total amount the insurance company will pay for all injuries and damages resulting from a single accident. In the example, this limit is $50,000 for the entire accident.
It is easiest to explain this using some examples.
Example Scenario #1Imagine you're involved in a car accident where the at-fault driver's insurance policy has limits of $25,000 / $50,000. If you're the only person injured in the accident and your medical expenses amount to $30,000, here's how the insurance coverage would apply:
- Since your expenses exceed the per-person limit of $25,000, you're entitled to receive the full $25,000 from the at-fault driver's insurance policy.
- However, even though the total available for the entire accident is $50,000, the insurance company will not cover the remaining $5,000 of your medical expenses because the per-person limit is only $25,000.
- The $50,000 limit would only apply if there were multiple claimants.
Example Scenario #2
Imagine a scenario where you're involved in a car accident with two passengers in your vehicle, and the at-fault driver's insurance policy has limits of $50,000 / $100,000. Here's how the insurance coverage would apply in this situation:
Per Person Limit: The per-person limit of $50,000 means that each individual injured in the accident can potentially receive up to $50,000 in compensation for their injuries.
Per Accident Limit: The per-accident limit of $100,000 signifies the maximum total amount the insurance company will pay for all injuries and damages resulting from the accident.
- Driver's Injuries: Your medical expenses amount to $40,000.
Since your expenses fall within the per-person limit of $50,000, you're entitled to receive the full $40,000 from the at-fault driver's insurance policy.
- Passenger's Injuries: The passenger sustains injuries with medical expenses totaling $70,000.
Since the passenger's expenses exceed the per-person limit of $50,000, they are eligible to receive only up to $50,000 from the at-fault driver's insurance policy.
However, since the total policy limits available for the entire accident is $100,000, there is sufficient coverage to compensate the driver ($40,000) and passenger ($50,000) up to the per-accident limit. (In this example, it combined to total $90,000).
Note – had there been another victim involved with $30,000 in damages, the total per accident limits of $100,000 would have to be pro-rated among the three victims because the $100,000 would not cover everyone’s damages.
Implications for Car Accident Victims in New Mexico
Understanding auto insurance policy limits is crucial for accident victims seeking compensation.
Here are some key implications to consider:
- Coverage Adequacy: Assess whether the at-fault driver's policy limits are adequate to cover your medical expenses, property damage, and other losses resulting from the accident.
- Stacking and Uninsured/Underinsured Motorist Coverage: In New Mexico, drivers have the option to "stack" coverage from multiple insurance policies or opt for uninsured/underinsured motorist coverage to protect themselves in cases where the at-fault driver's policy limits are insufficient. This can get confusing, so don’t focus on trying to understand that completely. Just know that Uninsured/Underinsured Motorist Coverage can help cover you if the other driver’s insurance limits are insufficient to cover all your damages.
Recover the Compensation You Deserve By Contacting Our New Mexico Personal Injury Attorney Today
Navigating auto insurance policy limits is a crucial aspect of securing fair compensation for injuries and damages resulting from car accidents in New Mexico. By understanding the per-person and per-accident limits of an insurance policy, accident victims can make informed decisions and seek appropriate legal recourse when necessary. Remember, seeking guidance from an experienced New Mexico personal injury attorney can greatly assist in navigating the complexities of insurance claims and maximizing your recovery.
Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.
- Per Person Limit: The first number signifies the maximum amount the insurance company will pay for injuries sustained by one individual in an accident. In the example $25,000 / $50,000, this limit is $25,000 per person.
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How are Social Security Disability Payments Calculated?
As an attorney specializing in Social Security Disability law, I often encounter clients seeking clarity on how the Social Security Administration (SSA) determines the amount of disability payments. It's crucial to understand that the calculation involves a complex process, considering various factors to ensure fair and accurate compensation for individuals facing disabling conditions. Here's a detailed explanation to address this frequently asked question:
1. Work Credits and Eligibility
To qualify for Social Security Disability Insurance (SSDI), individuals must have earned a sufficient number of work credits. Work credits are earned based on employment and income, and the exact requirements may vary depending on age.
2. Average Indexed Monthly Earnings (AIME)
The first step in calculating disability benefits involves determining the Average Indexed Monthly Earnings (AIME). AIME is the average of the highest-earning years adjusted for inflation using the Social Security indexing formula.
3. Primary Insurance Amount (PIA)
The AIME is then used to calculate the Primary Insurance Amount (PIA). PIA is the basic benefit amount a person would receive if they become disabled at full retirement age. The PIA is determined by applying a progressive formula to different income brackets.
4. Cost-of-Living Adjustments (COLA)
Disability benefits are subject to annual Cost-of-Living Adjustments (COLA) to account for inflation. This ensures that the purchasing power of disability payments is maintained over time.
5. Family Benefits
In some cases, family members of disabled individuals may be eligible for auxiliary benefits. This can include spouses, children, and even divorced spouses, each receiving a percentage of the disabled individual's PIA.
6. Maximum Family Benefit
The SSA imposes a Maximum Family Benefit limit to prevent family benefits from exceeding a certain threshold. This limit is typically a percentage of the disabled individual's PIA.
7. Waiting Period and Retroactive Benefits
There is a mandatory five-month waiting period for disability benefits. However, individuals may be eligible for retroactive benefits, allowing them to receive payments for the months they were disabled before the application date.
8. Trial Work Period
Social Security encourages individuals to return to work if possible. The Trial Work Period allows beneficiaries to test their ability to work for a limited time without losing benefits.
9. Substantial Gainful Activity (SGA)
Social Security defines the level of work activity that is considered substantial gainful activity (SGA). Earning income above the SGA threshold may impact disability benefits.
10. Consultation with a Social Security Disability Attorney
Given the complexity of the calculation process and the potential impact of various factors, consulting with a Social Security Disability attorney is advisable. An attorney can provide personalized guidance, ensure accurate documentation, and represent the client's interests in the disability claims process.
Understanding the intricacies of Social Security Disability payment calculations is crucial for individuals navigating the disability benefits system. While this overview provides a comprehensive guide, seeking legal counsel can greatly assist in navigating the complexities and ensuring the best possible outcome for those in need.
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Is It Okay For Me To Post On Social Media After An Accident In New Mexico?
Answer: I would advise against it. But if you are going to post about your accident, be careful and post sparingly.
In the age of information and connectivity, social media has become an integral part of our daily lives. While platforms like Facebook, Twitter, and Instagram offer us a way to stay connected with friends and family, they can also have unforeseen consequences, especially in the context of legal matters. There is also a temptation to get on there and rant about some other stupid driver. As a New Mexico car accident attorney, I often witness the impact of social media on car accident cases. In this blog post, we'll explore the importance of cautious social media use after an accident and how it can prevent potential harm to your legal case.
The Digital Footprint of Posting on Social Media After a Car Accident
One of the first things to understand is that everything you post on social media leaves a digital footprint. This includes status updates, photos, comments, and even location tags. Insurance companies and opposing attorneys are increasingly turning to social media as a source of evidence in car accident cases. What may seem like an innocent post or photo could be misconstrued and used against you in court.
My best advice is don’t post about your accident. But if you are going to post, be cautious and consider these tips.
1. Avoid Discussing the Accident
After a car accident, emotions can run high, and it's natural to want to share your experience. However, discussing the details of the accident on social media can be detrimental to your case. Avoid making any statements, apologies, or admissions of fault online.
2. Limit Posting About Your Activities
Insurance adjusters and opposing attorneys may monitor your social media accounts to gather information about your daily activities. Posting updates about physical activities or events that contradict your injury claims can be used to undermine your case. It's crucial to be mindful of the image you portray online.
3. Adjust Privacy Settings
Take advantage of privacy settings on your social media accounts. Restrict access to your posts and profiles to ensure that only trusted individuals can view your content. This adds an extra layer of protection against prying eyes looking for information that could be used against you.
4. Refrain from Accepting Friend Requests
Be cautious about accepting friend requests from individuals you don't know personally. Insurance companies may create fake profiles to gain access to your posts. By limiting your online connections, you reduce the risk of unauthorized access to your personal information.
Potential Consequences of Posting on Social Media After a Car Accident
Failing to exercise caution on social media after a car accident can lead to serious consequences for your case. Opposing parties may use your posts to dispute your injuries, question liability, or challenge the severity of the accident. What may have seemed like a harmless update at the time could be twisted and used against you in negotiations or court proceedings.
This FAQ is designed to cover the basics, but there is a helpful article, “Why Social Media & Car Accidents Don’t Mix,” which provides even more information and some additional helpful tips for social media after an accident.
Here is the short version: don’t do it… or if you do, proceed with caution.
Contact Our Roswell Car Accident Attorney For A Consultation Today
In the digital age, the impact of social media on legal cases, including car accidents, cannot be ignored. As an attorney, my advice is clear: exercise caution and restraint when it comes to sharing information online after an accident. Protect your rights and ensure that your online presence supports, rather than hinders, your case. By understanding the potential consequences and taking proactive steps to limit your digital footprint, you can navigate the legal process with greater confidence and increase the likelihood of a favorable outcome.
Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.
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What is Medical Payments (MedPay) Coverage and How Can It Be Used to Help After a Car Accident?
MedPay is coverage within auto insurance policies that pays for medical expenses resulting from car accident injuries, regardless of fault. Coupled with its inclusivity and collaboration with health insurance, MedPay is a valuable resource to car accident injury victims.
Car accidents are not only physically and emotionally distressing but can also result in significant financial strain, particularly when it comes to medical expenses. Amidst the various components of auto insurance, Medical Payments Coverage (MedPay) is a valuable yet often overlooked resource that plays a crucial role in alleviating the financial burden associated with post-accident medical bills. In this comprehensive guide, I'll explore the details of MedPay and its pivotal role in providing financial support for medical treatments after a car accident.
Understanding MedPay: A Safety Net for Medical Expenses
What is Medical Payments Coverage (MedPay)?
MedPay is a specialized provision within auto insurance policies designed to cover medical expenses resulting from injuries sustained in a car accident. Its distinguishing feature lies in its ability to cover medical costs, regardless of who is at fault for the accident. Essentially, MedPay acts as a financial safety net, offering support for necessary medical treatments and services. MedPay is not required by law, thus this is optional coverage. Most “full coverage” auto policies include MedPay.
How Does MedPay Work After a Car Accident?
Unlike some other insurance coverages, MedPay operates as a supplementary coverage that steps in to cover medical expenses arising from a car accident, irrespective of fault. This means that even if you are deemed responsible for the accident, MedPay can help cover your medical bills, providing an important layer of protection and financial support.
What Medical Expenses Does MedPay Typically Cover?
MedPay is designed to cover a wide range of medical expenses incurred as a result of a car accident. From hospital visits and emergency room care to surgical procedures, X-rays, diagnostic tests, ambulance services, doctor visits, and even dental treatments directly related to the accident – MedPay ensures that various aspects of medical care are addressed
Does MedPay Only Cover the Policyholder?
One notable advantage of MedPay is its inclusivity. It extends coverage beyond the policyholder to include passengers in the insured vehicle and even family members who may be driving the insured vehicle at the time of the accident. This broad coverage makes MedPay a valuable asset for protecting not only the policyholder but also those in their immediate circle.
MedPay vs. Other Insurance Coverages
How Does MedPay Differ from Other Types of Auto Insurance Coverage?
MedPay differs from liability coverage, a standard component of auto insurance, in its specific focus on covering medical expenses. While liability coverage may address damages to other parties involved in an accident, MedPay is dedicated to covering the medical costs of the insured and their passengers. It provides a specialized layer of protection for healthcare-related expenses and is particularly valuable because it provides coverage even if you are at fault.
Is MedPay Mandatory, and How Much Coverage Should I Consider?
Unlike some mandatory auto insurance coverages, MedPay is optional in many states. However, it offers valuable coverage that can significantly impact the financial aftermath of an accident. The amount of coverage to consider depends on individual circumstances, including existing health insurance coverage and potential out-of-pocket medical expenses.
Can MedPay Be Used in Conjunction with Health Insurance?
Yes, MedPay can work in tandem with health insurance. It complements health coverage by assisting in covering deductibles, co-payments, and other out-of-pocket medical expenses that may not be fully addressed by health insurance alone. This collaborative approach ensures a more comprehensive strategy for managing medical costs.
Does MedPay Cover Lost Wages or Other Non-Medical Expenses?
It's crucial to note that MedPay is specifically designed to cover medical expenses and does not extend coverage to address non-medical expenses such as lost wages or property damage. Its primary focus is on mitigating the financial impact of healthcare-related costs resulting from a car accident.
Navigating the Claims Process
How Do I Make a Claim with MedPay?
Initiating a MedPay claim involves contacting your insurance company and providing the necessary documentation, including medical bills and records. The claims process is generally straightforward, with the insurance company guiding you through the steps. Starting the claims process promptly after the accident is advisable to ensure a timely resolution of your medical expenses.
Is There a Time Limit for Filing a MedPay Claim After a Car Accident?
Yes, but the time limit for filing a MedPay claim can vary based on insurance company policies and state regulations. However, it is recommended to initiate the claims process as soon as possible after the accident to facilitate a timely resolution of medical expenses.
MedPay is a Crucial Component of Auto Insurance
Medical Payments Coverage (MedPay) stands as a valuable resource for individuals navigating the aftermath of a car accident. Its unique ability to cover medical expenses irrespective of fault, coupled with its inclusivity and collaboration with health insurance, makes it a crucial component of comprehensive auto insurance coverage. Understanding the intricacies of MedPay can empower individuals to make informed decisions about their insurance coverage and ensure that they have the necessary financial support when facing unexpected medical costs after a car accident. As you review and reassess your auto insurance policy, consider the invaluable role that MedPay can play in securing your well-being and financial stability in the aftermath of an unfortunate event on the road.
Contact Our New Mexico Personal Injury Attorney
Remember that the information provided in this FAQ is intended as general guidance. Every personal injury case is unique and seeking advice from a qualified New Mexico personal injury attorney is crucial to making informed decisions.
Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more
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Can I File A Personal Injury Claim If I Already Have A Workers' Compensation Claim In New Mexico
The short answer is yes. You can pursue a personal injury claim in addition to a workers’ compensation claim resulting from the same accident, but only if your injuries were caused by a third party (not a fellow employee).
Here is a list of short questions and answers on this topic from our New Mexico personal injury lawyer to explain:
What Is The Difference Between A Workers' Compensation Claim And A Personal Injury Claim?
A workers' compensation claim is designed to provide benefits to employees injured in the course of their employment, regardless of fault. On the other hand, a personal injury claim typically involves seeking compensation from a negligent party outside of the employer-employee relationship.
Why Might I Consider Filing Both Claims?
Workers' compensation covers certain benefits like medical expenses and lost wages, but it may not fully address all damages. Filing a personal injury claim allows you to seek additional compensation for pain and suffering, emotional distress, and other non-economic damages.
Can I Sue My Employer For A Personal Injury If I'm Already Receiving Workers' Compensation?
Generally, in New Mexico, you cannot sue your employer for a personal injury if you're receiving workers' compensation benefits. However, if a third party (not your employer or co-worker) is responsible for your injury, you may have grounds for a personal injury claim against that negligent party.
Can I File A Personal Injury Claim Against A Third Party While Receiving Workers' Compensation?
Yes, if someone other than your employer or a co-worker is responsible for your injuries, you can file a personal injury claim against that third party. This is known as a third-party liability claim and is separate from your workers' compensation case.
How Does Filing Both Claims Impact The Compensation I Receive?
Filing both claims allows you to potentially receive a broader range of compensation. Workers' compensation provides specific benefits, while a personal injury claim may cover additional damages not addressed by workers' comp, such as pain and suffering.
Can I Pursue Both Claims Simultaneously?
Yes, it is possible to negotiate and pursue claims for both your workers' compensation and personal injury claims at the same time. However, the terms and legal implications can be complex, and having legal representation is advisable.
What Factors Should I Consider Before Pursuing Both Claims?
Factors to consider include the nature of your injuries, the extent of damages, and the involvement of third parties.
Can My Employer Retaliate Against Me For Filing Both Claims?
New Mexico law prohibits employers from retaliating against employees for filing workers' compensation claims. Often, employers encourage a third-party claim to be brought when damages to their employee were caused by a negligent third party because there are rights of reimbursement that the employer’s carrier may be entitled to if there is a personal injury recovery against the negligent party.
Speak With Our Experienced New Mexico Personal Injury Attorney About Your Claim
There are many factors involved when considering workers’ compensation and personal injury claims, and it's crucial to consult with an experienced New Mexico personal injury lawyer to determine the best course of action for your specific situation. A lawyer can assess the details of your case, guide you through the process, and ensure your rights are protected every step of the way.
Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form here.
If you want even more information, feel free to download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.
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Can I Recover Punitive Damages in a Personal Injury Case?
The short answer is yes, but only in limited circumstances.
Let’s jump in and answer the most important information you need to know about punitive damage claims in personal injury cases.
1. What Are Punitive Damages In A Personal Injury Case?
Punitive damages, also known as exemplary damages, are a type of compensation awarded in addition to compensatory damages in certain personal injury cases. Unlike compensatory damages that aim to compensate the victim for their actual losses, punitive damages are meant to punish the defendant for their egregious conduct and deter similar behavior in the future.
2. Can I Seek Punitive Damages In A Personal Injury Case In New Mexico?
Yes, you can pursue punitive damages in a personal injury case in New Mexico, but certain conditions must be met. Under New Mexico law, punitive damages can only be awarded when the defendant's conduct was "malicious, willful, reckless, wanton, fraudulent, or in bad faith." The plaintiff must demonstrate that the defendant's actions were not only negligent but also displayed a conscious disregard for the safety and rights of others. This is the key requirement. It must go beyond just ordinary negligence to the point that someone would likely respond, “that’s outrageous!” when told about the facts.
Punitive damages are not available in all personal injury cases. They are typically reserved for cases where the defendant's conduct is especially reprehensible. For example, punitive damages might be sought in cases involving drunk driving accidents, intentional torts, or cases where the defendant's actions were particularly reckless.
3. What Is Required To Prove Eligibility For Punitive Damages?
To be eligible for punitive damages in a personal injury case in New Mexico, you must establish the following elements:
- The defendant engaged in conduct that goes beyond ordinary negligence.
- The defendant's conduct was malicious, willful, reckless, wanton, fraudulent, or in bad faith.
- The defendant's conduct caused your injuries.
4. How Is The Amount Of Punitive Damages Determined?
If the court determines that punitive damages are appropriate, the amount is usually left to the discretion of the jury. The jury will consider factors such as the severity of the defendant's conduct, the harm caused to the victim, the defendant's financial resources, and the need to deter similar conduct in the future. If your case is not in litigation, an insurance company adjuster would often evaluate the facts and include an amount for punitive damages when justified. The amount is negotiated with the insurance company in a similar manner to other damages in a personal injury claim (Beware though- see number 5 below!)
5. Will Insurance Cover Punitive Damages?
In many cases, insurance policies do NOT cover punitive damages. They typically cover compensatory damages arising from negligence or accidents. Punitive damages are intended to punish the defendant for their intentional or reckless conduct, and insurance policies often exclude coverage for intentional acts.
6. How Can An Attorney Help With Pursuing Punitive Damages?
An experienced personal injury attorney in New Mexico can help you navigate the legal process, gather evidence to establish the defendant's egregious conduct and present a strong case for punitive damages. They can also help you understand your rights, negotiate with insurance companies, and represent your interests in court if necessary.
7. Should I Consult An Attorney About Pursuing Punitive Damages?
Absolutely. Pursuing punitive damages requires a thorough understanding of New Mexico's complex legal standards and procedures. Consulting with a knowledgeable New Mexico personal injury attorney can help you assess the viability of your claim, build a compelling case, and increase your chances of obtaining the compensation you deserve.
Remember, each personal injury case is unique, and the applicability of punitive damages depends on the specific facts and circumstances. It's essential to consult with an attorney who is familiar with New Mexico law to determine the best course of action in your situation.
Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.