Frequently Asked Questions and Answers for Personal Injury Victims

You will often hear the term lien used in a personal injury case.  Medical 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.  This means you have to pay those amounts owed from your settlement. 

For example, in New Mexico a hospital can file a medical lien against a patient’s recovery or payment for treatment from an accident.  

Understanding Hospital Liens in New Mexico

Hospital liens are governed by New Mexico Statutes NMSA 48-8-1 – NMSA 48-8-7. 

A medical lien filed by a hospital will be for the amount of reasonable hospital charges, including care, maintenance, and treatment, up to the date of payment. There are certain procedures that must be followed for there to be a valid lien, which include filing written notice with the county clerk, mailing that notice to the injured party, and including certain information about the accident.  Hospitals are well-versed in these requirements as they frequently file liens in personal injury cases.  

What Assets Do Liens Affect?

It is important to note that a hospital lien (and other liens associated with your personal injury case) attach to your settlement funds, but do not attach to items like your house or vehicle or other assets. This means you must satisfy the lien out of the settlement, but it does not put your house, vehicle, or other assets in jeopardy.

Common Scenarios Where Liens Arise

The most common scenario liens arise for most individuals is the result of a health insurer or Medicaid paying medical bills on behalf of the injured.  Keep in mind, liens are not necessarily bad – as in the case of health insurance or Medicaid paying bills. They often pay a contracted reduced rate that is lower than the billed amount to you.  So even though you must repay them to satisfy their lien, you often will benefit financially even after paying off the lien. 

For those interested, Medicaid’s right of reimbursement (lien) arises by statute in New Mexico 

And a health insurer’s right or reimbursement arises by contract – meaning that your insurance policy contains language that gives your insurer this right of reimbursement. 

Liens/Right of reimbursement are a big deal and must be dealt with. They can’t be ignored.  

Dealing with Liens: What You Need to Know

This means that 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. 

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 must 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.

In Plain Terms Summary:

• Medical liens are legal claims that health insurers, Medicaid, Medicare, and hospitals can place on your settlement to recover the costs of your accident-related medical care. 
• The lien attaches to the settlement funds, not your personal assets.
• Liens can often be reduced but must be paid out of your settlement. 
• You can’t ignore them!

Conclusion:

Our dedicated personal injury team is here to help you if you have any questions on liens 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 check out my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.

So you’ve made it through the gauntlet of getting injured, making a claim, and finally you reach a settlement to compensate you for your damages.  Hopefully, it was a good outcome!  Now, you want to know the all-important question – when do you get your money?  

Cue the Jerry Maguire “Show Me the Money! line…

This is the most frequently asked question we get about what happens after a settlement. 

The answer is not always as simple or straightforward as we would like because there are numerous moving parts that must work together to conclude a case and get a check sent out.  Let’s jump in and look at what you can expect (typically).

After settling your case, the timeline for receiving your settlement funds typically ranges from a couple of weeks to a few months. Here are the main factors that impact this and why that timeline can vary so much:

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.  Your personal injury attorney will typically work with the insurance company on finalizing the release language and terms. Depending on the complexity of your case this can be straightforward or quite complicated and contentious. Ultimately though, a release will be agreed upon which you will be required to sign before your settlement check is mailed by the insurance company. For smaller claims, the release should only take a couple of days at most, and oftentimes it can be done the same day as the settlement is reached. For larger claims, it can take weeks, if not longer. 

In Plain Terms

In exchange for them paying you money (settlement), you agree you can’t pursue any further legal action against the at fault party in the future (release). This is why this step must take place before an insurance company will mail the payment. 

Insurance Company Payment:

Once the release is finalized and you sign it, the insurance company will process the payment, which can take several weeks. Some insurance companies are notoriously slow in issuing settlement checks!  Despite my strong desire to name names, I’ll resist and just say this can vary by insurance companies. Additionally, the larger the amount of money paid to you, the longer it tends to take because more people are involved in approving the release of the funds. They 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… 

In Plain Terms

Some insurance companies pay quickly; others can take a couple weeks.  The more money you are being paid, the longer you can expect it to take.  Big money paid out = more approval from the big dogs in the insurance company required. 

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… 

In Plain Terms

Insurance checks must be put in a trust account to make sure the funds are clear. Expect about 3 business days. When it clears, the funds are available. 

Lien Resolution

Any outstanding liens (e.g., medical liens) need to be resolved before you receive your portion of the settlement. Your attorney will handle that but since liens and other rights of subrogation (i.e. reimbursement) often involve health insurance companies and governmental entities such as Medicare and Medicaid, this can at times create delays at this stage. 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 your attorney can often use beneficial laws to obtain reductions for you, which puts more of your settlement money in your pocket.  

In Plain Terms

If you have unpaid bills or liens, these must be paid from your settlement.  But you want to reduce what you have to pay out because every dollar you get those bills/liens reduced goes directly into your pocket.  For some liens, you can’t start trying to get reductions until after you know your settlement amount so this is why it can take some time, particularly with Medicaid and Medicare. 

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, most of which are beyond your control and the control of your attorney.  

In general, for smaller claims, I would plan on it taking about three to four weeks after your settlement to actually have your money in your hands. For more complex claims plan on it takes longer. 

AND MOST IMPORTANTLY… never spend your settlement money before you have your money in hand.  Too many things can happen that delay payments. Oh, the stories I could tell you about clients violating this rule… but that will have to wait for another post.

I frequently get the following response when I discuss with clients they must repay their health insurer after an accident.  

“Why do I have to pay them back when I pay them a lot of money to provide health insurance for me?” 

It is a great question, and worth explaining in more detail. 

You only have to reimburse your health insurer if you receive money damages for the treatment that the health insurer paid for. 

In other words, if you cause a car accident and your health insurance pays for your treatment, you will not have to reimburse your health insurance because you are not going to receive money damages from another party.  A lien (right of subrogation) only arises with your health insurer if you receive monetary compensation from a negligent party.  

The law is designed to make sure you can get the medical treatment you need without having to wait for your personal injury claim to resolve. This means that if you go to the hospital for treatment after a car accident caused by a negligent driver, your health insurance will pay that bill. But, if you later receive compensation to cover the cost of that hospital bill by the negligent party, you must repay your health insurance for what they paid out for you.  

The legal basis gives health insurers this right of reimbursement (called subrogation) arises by the contract you sign with your health insurer when you purchase their services.  Your policy contains language that gives them this right of subrogation against the at-fault party’s insurance.  And since the at-fault party’s insurance is paying you for your damages, the right of subrogation extends to you.  

To understand this, you must remember that when you receive a settlement, that money is to pay for your medical treatment.  When you get paid a settlement to cover your medical bills that your health insurer already paid for you, then you have to repay your health insurer. Otherwise, it would be like you got paid twice for the medical treatment because the negligent party paid you, and your health insurer paid you by paying your bill. The law prevents this type of “double dipping”.  

The law is designed to always put the burden on the wrongdoer.  In this case, the person that hit you.  If your health insurer had to pay your bills for injuries caused by another party, that would unfairly shift the burden (expense) to your health insurance company. But at the same time, the law wants to ensure that injury victims can receive timely medical treatment.  The solution is that health insurers and others are given legal protections.  In exchange for them paying for your medical treatment, they are given a legal right to be reimbursed if you later make a financial recovery that is to pay for that treatment. 

In the end, the system works – you get the timely medical treatment you need; the medical provider is timely paid for their services; the wrongdoer later pays you a settlement for their negligence; out of that settlement you can repay your health insurer.  

But I get it, you pay a lot for health insurance, and it can be hard to understand why you have to reimburse them.  Hopefully this helps explain that the process is fair and helps ensure the wrongdoer bears the burden for their actions. 

Our Personal Injury Attorneys Are Here to Help

Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you if you have any questions about this topic 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 check out my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.

We often talk about the great outcomes of personal injury cases, but the reality is that there are times when the available insurance and settlement recovery don’t cover all the bills.  

Let me first explain how this can happen, because you might assume that when someone is negligent and injures you, that person has to pay all your damages. This is only partially correct...

If you can prove someone acted negligently and that as a 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. For example, you can’t go after someone’s home or auto to pay a debt they owe you. 

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.  

Every insurance policy provides coverage up to certain limits, referred to as the policy limits.  A policy limit is the maximum amount an insurer must pay for a claim that the insurance policy covers.  The policy limit is based on the amount of coverage the insured paid for, and as you likely already know, the higher the policy limits, the more expensive the insurance. 

Here is a helpful, brief article explaining insurance policy limits in case you would like more of an explanation.

Some people make the mistake of believing 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. 

Let me give an example:

• Driver A runs a stop sign and crashes into Driver B causing Driver B serious injuries and over $75,000 in medical bills.
• Driver A apologizes and assures Driver B he has insurance.  Driver B is relieved and believes all his damages will be covered.  
• Driver B submits his claim to Driver A’s insurance, who tells him they will pay him $25,000.  
• Driver B is outraged and argues his damages are worth way more than that.
• Driver A’s insurer says Driver A only purchased the minimum state policy limits of $25,000 so that is all the money they have to pay, even though his damages are worth much more than $25,000.

This is by far the most common scenario in which someone finds themselves with a settlement that doesn’t pay all the medical bills, much less other damages like lost earnings and pain and suffering. 

People in this situation often want to argue with the insurer (or even their own attorney) to point out all their damages and how it is not fair.  And that is true, but you must remember that the problem is not the amount of damages – the problem is the amount of insurance.  Whether you have $25,001 in damages or $3 million in damages, the most that insurer has to pay is $25,000. 

To further add to this frustration, you are not entitled to know the policy limits of the other driver unless 1) you file a lawsuit and get that information through discovery or 2) you are told when the insurer offers the policy limits to you.  In other words, the amount of limits can often come as a surprise (more like blindside) since you can’t find that information out just by asking. You are normally left wondering how much coverage they have and must then adjust if you find out their policy limits won’t be enough to cover you. 

The question then, is what you do if you find yourself in this unenviable position. 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.  You might be tempted to argue that you shouldn’t have to use your health insurance for their negligence, but in the end, it will be to your benefit to use your health insurance. Watch my video here for a more in-depth explanation

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.  You don’t need to understand the mechanics of that, just remember, it is to your benefit to always use your health insurance to pay your medical bills. 

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.  Here’s what you shouldn’t do - ignore the bills and hope they are just written off. 

There are many strategies that may be useful, but I found this Comprehensive Guide to Managing Medical Expenses After a Car Accident put out by an orthopedic physician group (AICA Orthopedics) to be helpful on this topic and many others relating to medical bills after an accident.

That guide includes a section specifically on negotiating with medical providers. 

Sometimes medical bills that go unpaid for a while get turned over to collection agencies, so be aware that there is usually room to negotiate with those collection services as well. 

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 carrying UM/UIM coverage which you can watch here.
  
  

• 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. 

If you would like more information on the benefits and unique aspects of each of these areas of insurance, you may want to check out this article that provides more in-depth explanations and helpful comparisons.

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 different 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 appeal 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.  This attorney blog does a good job of explaining that there is no additional insurance affidavit and even provides an example of one.

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 negligence of the other driver?  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. 

Our Personal Injury Attorneys Are Here to Help

As economic conditions continue to prove challenging for many families, we have seen an increase in the number of uninsured and underinsured drivers as families are forced to cut expenses.  As a result, the risk of being hit by an uninsured or underinsured motorist has increased which places all motorists at increased chances of finding yourself in the situation of having a settlement fail to cover your medical bills. 

You can and should consider each of the steps outlined above.  The great majority of the time, these steps will ensure you are not left with medical bills to pay even if your settlement is less than your medical bills. 

Our dedicated personal injury team here at The Injury and Disability Law Center is here to help you if you have any questions or would like help 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 check out my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.  

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.

• • 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.

• • 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.

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Why you should use your health insurance to 
pay your medical bills if possible

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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.

• • 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:

• • 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:

• • 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.

• • 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. 

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.

• • 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.\

• • 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

• • Attorney Fees: $5,000.00
  • Sales Tax: $350.00
  • Case Costs: $125.00
  • Total Legal Fees: ($5,475.00)

Medical Expenses

• • Primary Care Doctor ($200.00)

Liens

• • 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. 

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 accidents

How 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 Roswell car accident attorney 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.

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:

1. 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.
    
2. 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 #1

Imagine 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.

1. 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.
    
2. 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:

1. 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.
    
2. 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.

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. 

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. 

There are many factors considered when assessing the value of a personal injury claim in New Mexico. I will include the TEN MOST IMPORTANT factors along with a brief description. For more details on each of these factors, check out my free downloadable book, “Car Accident Cases Made Simple(r). 

1. Liability / Comparative Negligence

Determining who is at fault or liable for the accident or injury is crucial. New Mexico follows the doctrine of pure comparative negligence, which means that the plaintiff's recovery can be reduced if they are found partially at fault. For instance, if your total damages are $100,000, but you are found to be 20% at fault for the accident, your final recovery would be reduced to $80,000.

Therefore, it's essential for claimants to establish clear liability and minimize evidence of their own negligence to maximize their potential recovery in motor vehicle accident cases. 

All the other factors on this list won’t matter if you can’t successfully argue liability – making this the number one factor on this list. 

2. Nature and Extent of Injuries

The severity of your injuries and the related medical treatment play a significant role in determining your claim’s value. Consideration is given to whether your injuries will have long-term or permanent effects, including disability, pain, or emotional distress.

3. Economic Damages

Economic damages are those damages you suffer that have a specific dollar value that can be assigned or calculated. These are the most common economic damages. 

• Medical Expenses: The cost of past and future medical treatments, including surgeries, rehabilitation, medications, and therapy.
• Lost Income: Compensation for wages or income lost due to the injury, which may include future earnings if you are unable to work in the same capacity as before.
• Property Damage: If your personal property, such as a vehicle, was damaged in the incident, you may be entitled to compensation for repair or replacement costs.

4. Non-Economic Damages

Non-economic damages are those damages that do not have a specific dollar value that be assigned or calculated specifically. For this reason, non-economic damages tend to be more difficult to value and are more heavily argued by insurance companies. The most common non-economic damages are: 

• Pain and Suffering: The physical and emotional distress caused by the injury.
• Loss of Consortium: Compensation for the impact of the injury on your relationship with your spouse or family members.
• Loss of Enjoyment of Life: Compensation for the loss of ability to participate in activities you once enjoyed.

5. Insurance Coverage

The insurance policies of the parties involved can significantly impact your claim’s value. This includes the limits of liability coverage and any additional coverage available, such as underinsured or uninsured motorist coverage.

6. Settlement vs. Trial

The willingness of both parties to reach a settlement out of court can affect the final compensation amount. In some cases, a trial may be necessary to achieve a fair outcome. However, a settlement may result in less than the top value of your claim, but a settlement also eliminates the risks of a trial that could leave you with zero. A settlement also avoids the stress that clients feel with a trial and, for that reason, may be more appealing. These are important factors that must be considered on a case-by-case basis. 

7. Unique Circumstances

Every personal injury case is unique, and various additional factors may come into play depending on the specific circumstances of your case.

Have the injuries sustained impacted you differently than they do most? For example, I once had a client who had a unique business of providing specialized physical therapy to horses. Her injuries impacted her ability to perform her job and participate in many of her hobbies and activities. 

Unique circumstances can also be something like you couldn’t obtain medical treatment because you didn’t have health insurance and couldn’t afford medical treatment. In these situations, the medical bills might not be an accurate measure of the value of your damages. 

Every case is different. Look for the unique factors that might increase the value of your claim.

8. Pre-Existing Conditions

If you had pre-existing medical conditions, the defendant's liability may be limited to the extent the injury worsened those conditions. A defendant is only responsible for the injuries/damages caused by their negligent action. Your medical condition prior to the accident is an important factor in understanding the value of your claim. 

9. Emotional Distress

Technically, this is non-economic damage that I reference above in the pain and suffering, but this is an important factor, so I decided to mention it again because it comes up a lot. Claims for emotional distress or mental anguish are valid in New Mexico but can be challenging to quantify (put a value on). Evidence such as therapy records and expert testimony may be necessary. 

Something to keep in mind, the emotional distress damages will not usually be valued as high as you feel it should. Every accident comes with an emotional impact. However, in general, the level of emotional distress damages will have a correlation to the level of injuries sustained. In other words, if you have a minor accident with limited treatment, then your emotional distress damages would then be expected to be minor as well. If you were in a catastrophic accident with permanent injuries, the emotional damages are thus equally more significant. 

10. Punitive Damages

In rare cases, punitive damages may be awarded to punish the defendant for egregious misconduct - think of drunk drivers or very high-speed accidents (20+ MPH over the speed limit). Don’t forget about texting and driving, too. Some courts have started awarding punitive damages in cases where the defendant was texting while driving. 

Contact Our New Mexico Personal Injury Lawyer Today to Get Your Consultation

It's important to consult with an experienced New Mexico personal injury attorney who can thoroughly evaluate your case, assess these factors, and provide guidance tailored to your unique circumstances. A personal injury attorney in New Mexico can help you pursue the maximum compensation you deserve for your injuries and losses.

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, download my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.