After a car accident, you may know that you deserve help paying for your medical bills, vehicle repairs, and missed work. At the same time, you may worry that asking for that help will make your own car insurance more expensive.
That fear keeps some people from filing a claim or speaking with an attorney.
Here is the simple answer: suing after a car accident does not automatically raise your insurance rates. What usually matters more is who caused the accident, which insurance policy is being used, your driving history, and the rules your insurer uses when setting rates.
Let’s break that down.
Who are you actually suing?
People often say they are “suing the insurance company,” but that is not always what happens.
In a typical car accident case, you first make a claim with the at-fault driver’s insurance company. If the company will not offer a fair settlement, you may file a lawsuit against the driver who caused the accident.
The driver’s insurance company will usually defend the driver and may pay a settlement or judgment up to the policy limits. Even though you are negotiating with an insurance company, the other driver is often the person officially named in the lawsuit.
This matters because filing a case against another driver should not, by itself, be treated as a reason to raise your own rates.
What if the accident was not your fault?
New Mexico law offers an important protection for drivers who were not at fault.
An auto insurance company generally cannot raise your premium based on an accident in which you were not at fault. It also cannot cancel or refuse to renew your policy based only on that accident.
This does not mean your bill can never change. Insurance companies consider many factors when setting rates, including your driving history, past accidents, tickets, vehicle, location, coverage choices, and other allowed rating factors.
The key point is that a not-at-fault accident should not be the reason your insurer raises your premium.
What if you use your own insurance?
Sometimes you may need to make a claim through your own insurance company even when someone else caused the crash.
For example, you might use:
- Collision coverage to repair your vehicle
- Medical payments coverage for certain medical expenses
- Uninsured motorist coverage if the other driver has no insurance
- Underinsured motorist coverage if the other driver does not have enough insurance
Using your own coverage does not mean you caused the accident. You paid for that protection so it would be available when you needed it.
Still, it is smart to ask how the company is recording the claim and whether it has made any decision about fault. Keep copies of the police report, photographs, witness information, repair estimates, medical records, and messages from the insurance companies.
Can you sue your own insurance company?
In some cases, the disagreement is with your own insurer.
This may happen when you make an uninsured or underinsured motorist claim and your insurer disputes what the claim is worth. It may also happen if the company delays the claim, denies coverage, or fails to handle the matter fairly.
A dispute with your insurer does not automatically mean your rates will increase. However, these cases can be more complicated because the details of your policy, the accident, the claim, and the insurer’s actions all matter.
Before assuming that you need to sue, an attorney can review your policy and explain which options make the most sense.
What should you do if your rate increases?
Start by asking your insurance company for an explanation.
Do not assume the increase happened because you filed a claim or spoke with an attorney. Your premium may have changed for another reason, such as a company-wide rate adjustment, a change in your coverage, the loss of a discount, or another item in your driving history.
Ask these questions:
- Was I found at fault for the accident?
- Was this accident used to calculate my new rate?
- Did I lose a discount?
- What other factors caused the increase?
If the insurer says you were at fault when the accident report says you were not, ask how it reached that decision. New Mexico law requires the insurer to investigate before making a finding that goes against a report stating that its insured was not at fault.
We are here to make this simple
You should not have to choose between protecting your finances after a crash and protecting your insurance policy.
We spent years working for the people of New Mexico, and that care is why we do this work today. We can explain how the claims process works, help you understand who may be responsible, and guide you through your options without adding more stress to an already difficult situation.
Contact us at 575-265-5333 or reach out through our form to talk with someone who can help you protect your rights without letting fear about your insurance rates stop you from asking for the help you need.
In Summary:
Q: Will suing after a car accident automatically raise my insurance rates?
A: No. Filing a lawsuit does not automatically cause your insurance rates to increase.
Q: Who do I sue after a car accident?
A: In many cases, the lawsuit is filed against the driver who caused the accident, while that driver’s insurance company handles the defense and payment.
Q: Can my insurer raise my rate after a not-at-fault accident in New Mexico?
A: Your insurer generally cannot raise your premium based on an accident in which you were not at fault. Other lawful rating factors may still affect your price.
Q: Can I use my own coverage if the other driver caused the accident?
A: Yes. Depending on your policy, you may use collision, medical payments, uninsured motorist, or underinsured motorist coverage.
Q: What should I do if my premium increases after the accident?
A: Ask the insurer for a clear explanation, find out whether it considered you at fault, and request the factors it used to calculate the new rate.
This article is general information, not legal advice. Every person and every case is different, and the law can change. Please talk with a licensed attorney about your specific situation before making any decisions.