It’s not uncommon to be in an accident with a teen driver. A 2024 study from the CDC showed that teen drivers were behind the wheel in 10% of fatal crashes involving speeding and 6.5% involving distracted drivers. In New Mexico, 5,000 teen drivers are injured or killed in car accidents every year.

But when it comes to seeking compensation for damages and injuries caused by a young driver, there can definitely be some confusion. Who do you contact regarding damage to your car: the kid or their parents? How will you receive payment for injuries if a young driver doesn’t have insurance? Who is financially responsible if the teen was driving a friend’s car? 

With so much uncertainty, it helps to know what to expect after a teen car accident. Armed with the right information — and an experienced attorney — you can receive the amount you deserve to get back on your feet physically and financially.

Who is Liable in Teen Car Accidents?

Perhaps you were rear-ended at a stoplight by a young driver or one turned in front of you in an intersection. Just because they caused the accident doesn’t mean they are responsible for damages. In an accident with a teen, liability depends on their insurance policy (if any) and who owns the vehicle they were driving.    

Typically, one of the following will be responsible for damages:

The Parents

In New Mexico, when a teen under 18 applies for a learner’s permit or driver’s license, the state’s auto accident statute (N.M. Stat. § 66-5-11) requires a parent to sign the application. Signing means the parent assumes liability for any negligent or willful misconduct while the child is driving, and that the parent is responsible for damages if their child causes an accident. Parents must also include minor drivers in the household under their insurance policies. 

Even if a child is older than 18, they may still be included on their parents’ car insurance policy if they still live at home or if they are a full-time college student living away from home. If this is the case, victims who have been in an accident with a teen driver can file a claim with the parent’s insurance company.

The Owner of the Vehicle

If a teenager borrows a friend’s car and gets into an accident, the friend is liable for damages. Or if the car’s owner is another teen, whoever holds the car’s insurance policy—likely his or her parents. This is because insurance policies apply to the vehicle, not the driver, so damage or injuries caused by that car are covered under its policy. In this case, you would file a claim against the car owner’s insurance policy. The only way this case would get complicated is if the owner claims the teen took his car without permission. 

The Teen Driver

If the driver is over 18, they may be legally liable for damages in an accident. The following must be true:

• The teen is the vehicle’s owner
• The insurance policy is in their name
• They no longer live in their parents’ home

In this case, you can file a claim against the teenager’s insurance.

What if Insurance Doesn’t Pay Enough, or Refuses to Pay?

In New Mexico, the auto accident statute doesn’t cap parental liability, meaning parents are responsible for all damages their child causes in a collision. So if your accident with a teen driver resulted in serious injuries, the parents are liable for paying your medical bills, no matter how high the dollar amount. 

However, New Mexico has minimum requirements for car insurance coverage, including:

• Property damage liability: $10,000, which covers damage to other cars
• Bodily injury liability: $25,000 per person and $50,000 per accident

Considering that severe accidents can total a vehicle and add up to hospital bills and rehabilitation costs far beyond $50,000, insurance alone may not cover all expenses. 

What’s more, insurance adjusters could deny a claim altogether or refuse to pay what is owed. And if the teen doesn’t have insurance at all, you could be out of luck without legal help if you don’t have an uninsured/underinsured (UM) policy.

Legal Options for Seeking Compensation After an Accident with a Teen Driver

Navigating the complexities of a collision with a teen can be tough on your own. Our legal experts know the law when it comes to dealing with teen drivers, and we will take all the steps necessary to get you the compensation you deserve. This may include:

Negotiating with the Insurance Company

Whether it is the teen, their parents, or a third party whose policy is involved, sometimes all it takes to make an insurance company pay up is a demand letter from an attorney. We’ve handled hundreds of cases with teen drivers and know how to put together a demand letter that includes a fair amount of compensation, supporting evidence that the driver was negligent, and a firm request for a resolution to your claim. Just seeing our name on the letterhead could be enough to show them you are serious about getting the settlement you deserve.

Filing a Lawsuit Against the Insurance Company

If the at-fault driver’s auto insurance company denies your claim, offers a low-ball settlement, drags out the settlement process, or stops responding to negotiation attempts, you can file a lawsuit against them. Our attorneys will help you file a complaint with the court and gather evidence that the insurance company has acted in bad faith or did not pay an appropriate amount.

Filing a Civil Lawsuit

If damages and injuries go beyond the limits of the at-fault driver’s insurance policy, you can seek compensation from your uninsured/underinsured policy, if you have one. If you do not carry UI insurance or your medical bills and vehicular damage add up to more than what your UI insurance will cover, it’s possible to sue the driver. Or often in the case of teen car accidents, sue the parents of the driver. This may entail proving that the parents showed negligence in entrusting the vehicle to the teen, knowing that he would drive recklessly. 

Our legal team will work to prove that the driver’s negligence or recklessness caused the accident, and that you are owed compensation to cover the remainder of expenses that insurance will not cover, including:

• Medical bills
• Rehabilitation
• Lost wages
• Non-economic damages like emotional distress, pain and suffering, and loss of enjoyment of life 

Unfortunately, Teen Car Accidents Happen All the Time in New Mexico. Our Attorneys Are Here to Help. 

In ideal situations when you’re in an accident with a young driver, insurance information can be exchanged, and all else goes smoothly. If that doesn’t happen, give us a call. There’s no cost for a consultation, and we will do everything we can to get you the compensation you deserve.