Written by Parnall Law Firm reviewed by Bert Parnall Car Accident Articles
Owner/CEO at Parnall Law Firm
Most states require drivers to carry a minimum insurance coverage, including liability insurance. However, some states have additional insurance requirements, such as personal injury protection.
Carrying minimum insurance coverage provides crucial financial protection in an at-fault accident. Most importantly, higher insurance coverage gives you an upper hand when involved in an accident.
An auto accident victim can sue for damages that exceed your insurance coverage, highlighting the need for a higher limit.
If you are injured in a car accident caused by someone else’s negligence, consult a trusted car accident attorney.
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The insurance limit is the maximum damages an insurance provider will pay in a car crash. Each state has a minimum auto insurance limit, providing the lowest coverage a vehicle owner can carry and operate legally.
In New Mexico, the liability limit is 25/50/10, corresponding to bodily injury per person, bodily injury per accident, and property damage.
Here is a brief of the applicable limits in New Mexico:
Here are the penalties for driving without insurance in New Mexico:
In addition to the above insurance limits, some states require extra requirements. For instance, Connecticut has the following auto insurance policy limits:
It also has the following additional requirements:
Florida has the following minimum auto insurance coverage limits:
All states except South Carolina, New Hampshire, and Virginia require vehicle owners to carry minimum auto insurance. Even so, drivers in the exempted states may need auto insurance in specific scenarios, including:
Liability insurance protects you if you’re financially liable for someone’s injury or property damage. It comes as a standard feature for auto liability and is the main type of auto insurance required in most states. This essential coverage typically includes both bodily injury liability and property damage liability, ensuring you’re protected in case of an accident.
Here are instances where liability coverage applies in auto accidents:
Personal injury protection, called ‘no-fault insurance,’ covers medical bills and related losses regardless of who caused the crash. It covers medical expenses for insured policyholders and passengers, including those without insurance.
In addition to medical expenses, PIP covers other injury-related expenses, such as lost income, child care, and funeral expenses.
There is a difference between personal injury protection and bodily injury liability. Personal injury protection covers medical expenses related to an accident, regardless of the at-fault party. On the contrary, bodily injury liability covers expenses to an injured party when you’re at fault.
Many drivers operate without insurance despite the requirement in many U.S. states to carry insurance. According to estimates by the Insurance Information Institute, one out of eight drivers does not carry auto insurance; in some states, the number is one out of five.
Uninsured Motorist Insurance covers the medical bills for you and your passengers if you are involved in an accident with an uninsured motorist. It can also cover the cost of damages to your vehicle or personal property if the accident was caused by an uninsured driver.
In some instances, the at-fault driver may have auto insurance that barely covers the damages related to the accident. As such, the underinsured motorist coverage (UIM) should cover the shortfall.
Here’s what would happen if hit by a truck driver with insufficient insurance:
If injured, medical payment coverage covers the following expenses for you and your passengers:
Unlike bodily injury liability coverage, medical payment coverage is optional. You may have to pay out of pocket if injured when you don’t have medical payment coverage.
Like personal injury protection, medical payment coverage covers medical expenses after an accident, regardless of who caused it.
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New Mexico is a fault state, which means the negligent driver is liable for the damages related to the accident. Sometimes, the accident victim doesn’t obtain compensation from the at-fault party.
An injured party can use the following options:
In a no-fault state, you can file a claim with your insurance company to recover accident-related damages if you’re injured in a car crash. The policy applies regardless of the at-fault party.
Kentucky, New Jersey, and Pennsylvania apply optional ‘no fault’ or ‘choice no-fault state.’ The rule allows policyholders to choose between a standard type of insurance and no-fault. Drivers who choose no-fault limit their ability to sue for non-economic losses.
Those who choose a standard tort option retain their ability to sue for monetary and non-monetary losses.
Victims of auto accidents endure physical harm and disruptions to their personal lives. They, therefore, deserve compensation for injury-related losses like medical expenses, lost income, and pain and suffering.
An experienced attorney can demonstrate the extent of your injury and negotiate for a fair settlement value that matches your losses. Parnall Law is a team of personal injury attorneys with decades of experience representing injured victims. Contact us online or at (505) 268-6500 for a free consultation.
Bertrand Russell Parnall is an Albuquerque native, salutatorian of the Class of 1988 at Albuquerque High School, and co-captain of the district football champion Bulldogs. He earned his undergraduate degree from Rice University with a double major in history and French, and his law degree from the University of New Mexico School of Law after coming home to Albuquerque.
Years of Experience: 27+ years
Justia Profile: Bert Parnall
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Bertrand Russell Parnall who has more than 20 years of legal experience as a personal injury attorney.
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