How Is Compensation Calculated in a New Mexico Car Accident?

February 10, 2025

How Is Compensation Calculated in a New Mexico Car Accident?

If you’ve been injured in a car accident in New Mexico, you may be entitled to compensation for your losses. However, understanding how compensation is calculated can be complex, as it depends on several factors, including medical expenses, lost wages, property damage, and pain and suffering. At Silva & Associates, P.C., we can provide legal assistance to those navigating the aftermath of a car accident in New Mexico.


Types of Compensation in a Car Accident Claim


New Mexico follows a fault-based system for car accidents, meaning the at-fault party (or their insurance company) is responsible for paying damages. Compensation typically falls into two main categories: economic damages and non-economic damages.


1. Economic Damages (Tangible Losses)


These are measurable financial losses directly related to the accident, including:

  • Medical Expenses – Covers hospital bills, surgeries, medications, physical therapy, and any future medical costs related to the injury.
  • Lost Wages – Reimbursement for income lost due to time away from work, as well as reduced earning capacity if the injury affects future employment.
  • Property Damage – Compensation for vehicle repairs or replacement, as well as any other damaged personal property.
  • Out-of-Pocket Expenses – Includes transportation to medical appointments, home modifications due to disability, or hiring in-home care.


2. Non-Economic Damages (Intangible Losses)



These damages account for the personal impact of an accident, which can be more difficult to quantify:

  • Pain and Suffering – Compensation for physical pain, discomfort, and chronic suffering caused by the accident.
  • Emotional Distress – Covers anxiety, depression, PTSD, and other psychological effects of the crash.
  • Loss of Enjoyment of Life – If injuries prevent participation in activities or hobbies previously enjoyed.
  • Loss of Consortium – Compensation awarded to a spouse if the accident impacts the victim’s relationship or companionship.


New Mexico’s Comparative Negligence Rule


New Mexico follows a pure comparative negligence system, meaning compensation is adjusted based on each party’s degree of fault. If a victim is found to be partially at fault for the accident, their compensation is reduced by their percentage of fault.

For example, if a victim is awarded $100,000 in damages but found to be 20% at fault, they would receive $80,000 instead. This rule applies even if the injured party is more than 50% responsible for the accident.


Punitive Damages


In rare cases, punitive damages may be awarded if the at-fault driver’s actions were particularly reckless or intentional, such as driving under the influence or engaging in road rage. These damages serve as a punishment rather than compensation for specific losses.


Maximizing Compensation in a Car Accident Case


To maximize compensation, accident victims should:

  • Seek immediate medical attention and follow all treatment recommendations.
  • Document injuries, medical bills, lost wages, and other related expenses.
  • Obtain evidence, such as police reports, witness statements, and photos of the accident scene.
  • Avoid making recorded statements to insurance companies without legal representation.
  • Consult an attorney to ensure fair compensation is pursued.


At Silva & Associates, P.C., we help car accident victims in New Mexico build strong cases to secure the compensation they deserve. If you’ve been injured in a crash, contact us to discuss your legal options.

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