Auto insurance is supposed to help accident victims recover for their losses after being involved in a serious accident. However, in reality, insurance companies are for-profit companies that are solely motivated by profit. In too many New Mexico car accident cases, insurance companies refuse to offer fair settlements or contest accident victims’ claims altogether. A recent personal injury opinion illustrates how an insurance company may try to limit the amount of money it pays out following a serious car accident.
The plaintiffs lost two loved ones in a fatal car accident. At the time, the plaintiffs insured five cars through the insurance company and were provided two policy numbers. The limit on each policy was $250,000. Thus, the plaintiffs were seeking a total of $500,000. However, the insurance company claimed that the plaintiffs only had a single policy and paid out just $250,000. Following the accident and the insurance company’s failure to pay their requested amount, the plaintiffs filed a wrongful death lawsuit against the other driver as well as their own insurance company.
At trial, the insurance company sought dismissal of the case, taking the position that the plaintiffs had only one insurance policy and arguing that it had already paid what was due under the plaintiffs’ single policy. The trial court rejected the insurance company’s argument and denied the insurance company’s motion. The insurance company then appealed to a higher court.