When your vehicle suffers damage in a crash, you can pursue compensation for property loss apart from any bodily injury claim. Under New Mexico law, auto insurers and courts treat property damage and personal injury as distinct claims. Understanding each step helps you secure fair reimbursement for repair or replacement costs.
Detailed Answer
Step 1: Notify Your Insurer Promptly
Contact your own insurer and the at-fault driver’s insurer as soon as possible. Most policies require “prompt notice” of a claim. Failure to notify may give the carrier grounds to deny coverage.
Step 2: Document the Damage
- Take clear photos and videos of all visible damage.
- Obtain a copy of the police or accident report.
- Get written repair estimates from at least two licensed auto shops.
- Save receipts for towing, storage, or rental car expenses.
Step 3: File a Property Damage Claim with the At-Fault Driver’s Insurer
Submit your documentation and a written demand to the at-fault party’s liability carrier. New Mexico law requires drivers to carry minimum liability coverage of $25,000 per person, $50,000 per accident for bodily injury, and $10,000 for property damage (NMSA 1978, 66-5-301). If the damage stays within policy limits, the insurer should pay repair or replacement costs.
Step 4: Use Your Own Collision or Uninsured Motorist Property Damage Coverage
If the at-fault driver lacks sufficient coverage or cannot be identified (hit-and-run), you can file under your collision coverage or uninsured motorist property damage endorsement. Review your policy for deductibles and coverage limits.
Step 5: Consider Legal Action If Negotiations Stall
If the insurer denies or delays payment, send a formal demand letter outlining the facts and your damage amount. Mention your intent to file suit if you do not receive payment within 30 days. Under New Mexico’s statute of limitations for tort actions, you have three years from the date of loss to file a lawsuit (NMSA 1978, 37-1-8).
Step 6: File in Court If Necessary
If you must sue, choose the appropriate forum:
- Magistrate Court (claims up to $10,000).
- District Court (claims over $10,000).
Draft a complaint, serve the defendant, and follow New Mexico Rules of Civil Procedure.
Helpful Hints
- Keep a detailed damage log with dates, costs, and contacts.
- Consult an adjuster or independent appraiser if estimates dispute insurer figures.
- Review your policy declarations to confirm coverage types and limits.
- Use certified mail for all formal correspondence to establish proof of delivery.
- Track rental car expenses separately—these qualify as recoverable damages.
- Retain all medical and repair records even if you only pursue property damage now—it may support a future bodily injury claim.
Disclaimer: This article provides general information under New Mexico law. It does not constitute legal advice. Consult a qualified attorney to discuss the facts of your case.