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Auto Insurance Claims/Underinsured motorist


We were recently in a head on crash with the other vehicle completely liable. The entire wreck involved 4 vehicles and 6 people going to the hospital.This happened in New Mexico, a "fault" state, but I suspect that the at fault driver had only the barest minimum of auto insurance required by law . How is a settlement determined when there is not enough insurance purchased by the at fault driver? Our insurance company has exhausted our "medpay" and is now sending bills over to the at fault insurance company. Thank you

Hi Christina,

I'm sorry this has happened to you.

Here is how the medical payments will go.

1) Your MEDPAY pays first until exhausted.
2) Next, nothing will be paid by the at fault insurance company until all treatment is completed. You or your attorney will then prepare a settlement package. This is where you assemble all medical bills, test results, doctors notes, diagnosis and prognosis. You or your attorney will also write a settlement demand letter which outlines all of the injuries, costs and any permanency rating as well as a demand for an amount of money for all of the medical bills and pain & suffering.  

If the at fault insurance company does not have enough coverage available, you would need to notify your insurance company that you will need to file a claim under uninsured/under-insured motorist coverage.

Once the entire claim is sorted out between the companies, there will be a lump sum settlement. Out of that settlement you will pay all the medical bills.

If the medical bills are significant and or the injuries are serious, I would strongly suggest you speak to a good personal injury attorney. Do not trust your insurance company to what is in your best interest.  

I hope this helps
Richard Hixenbaugh

Auto Insurance Claims

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Richard Hixenbaugh


Auto insurance claims procedure, auto coverage, liability issues, auto damage questions, how to deal with the insurance company, loss of use and diminished value.


I have been involved in the insurance industry for over 25 years. I have experience in underwriting, sales, claims adjusting, auto damage estimating, auto value appraising and diminished value appraising. I have testified as an expert witness over 35 times.

Society of Certified Auto Appraisers

Completed all required courses for the Florida Property-Casualty agents license and the Florida claims adjusters license. I have attended various courses on auto damage estmating, vehicle appraising and am ASE certified in collision damage analysis.

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