How do insurance companies determine fault in an accident?

In New Mexico, insurance companies determine fault in car accident cases based on something called comparative fault. Comparative fault says that the amount of damages a person may receive is in proportion to their amount of fault in the accident. For example, if two cars are in an accident and one driver is judged to be 80% responsible and the other is 20% responsible, the person who is 20% responsible will receive 80% of the damages. Insurance companies look at things like the police report, statements from eyewitnesses, and photos of the accident to determine fault. In some cases, they may hire experts to review the evidence and make a determination. The insurance company will also review the state’s laws to make sure they are applying the correct fault laws. In New Mexico, the law uses what is called “modified comparative fault” which means that if a person is found to be more than 50% responsible for the accident, they cannot collect any damages. This is why it is important for drivers to drive safely and responsibly, because if they are found to be at fault for an accident, they may not be able to collect damages.

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