Disclaimer: This article provides general information and is not legal advice. Consult an attorney for guidance specific to your situation.
Detailed Answer
1. Identify Unfair Delays and Denials
After a collision, insurers must handle your claim fairly and promptly. The New Mexico Unfair Insurance Practices Act (NMSA 1978, §59A-16-20) prohibits tactics such as unreasonable delays, incomplete investigations, or refusing to pay without a valid basis. Under the Prompt Payment of Claims Act (NMSA 1978, §59A-16-17), insurers must accept or deny first-party auto claims within 30 calendar days of receiving proof of loss.
2. Gather and Preserve Evidence
Collect all relevant documentation: photos of vehicle damage, police and accident reports, repair estimates, medical bills, and written communications with the insurer. Create a clear timeline of events and keep copies of letters, emails, and notes from phone calls. Detailed records can prove the insurer received your information and help refute delay or denial claims.
3. Send a Formal Appeal or Demand Letter
Prepare a written demand letter detailing the facts of the collision, applicable policy coverage, and the basis for your value of loss. Cite policy provisions and relevant New Mexico statutes. Demand a full, prompt resolution and state a deadline (typically 10–14 days). Send the letter via certified mail with return receipt to ensure delivery proof.
4. File a Complaint with the Office of Superintendent of Insurance
If the insurer fails to address your appeal, file a complaint with the New Mexico Office of Superintendent of Insurance (OSI). The OSI enforces compliance with state insurance laws and investigates unfair practices. You can submit a complaint online at OSI Complaint Portal. Under NMSA 1978, §59A-1-6, the OSI may impose penalties or require corrective action against insurers.
5. Consider a Bad Faith Lawsuit or Civil Action
When an insurer’s conduct goes beyond a contract dispute—such as intentionally denying a valid claim or ignoring its own procedures—you may have a bad faith claim. New Mexico courts allow insureds to seek extra-contractual damages, including emotional distress and attorney fees. Consult a qualified New Mexico attorney to evaluate your case and file suit in district court or small claims court (for claims up to $10,000).
Helpful Hints
- Review your auto policy for notice deadlines and appeal procedures.
- Keep organized, time-stamped records of every interaction with the insurer.
- Use certified mail or email read-receipt for important communications.
- Explore mediation or informal dispute resolution through the OSI before suing.
- Engage a New Mexico attorney experienced in insurance law early if the insurer continues unfair practices.