A subrogation claim is when your insurance company requests compensation from the money you win in a personal injury case for costs it paid for while your case was pending. It is as though the insurance provider is saying to you: “We covered the costs of your medical care after your injury. You have now received a settlement check that is intended to cover at least some of your medical expenses. If we paid those bills, that recompense should go to us.”
Having a personal injury lawyer on your side will help you fight for the largest settlement possible if your case involves a subrogation claim by your insurer. Contact Law Offices of Fernando D. Vargas at 909-982-0707 to request a free legal consultation.
How does subrogation work?
Subrogation enables insurance providers to recoup their costs from a subsequent personal injury claim if they have already paid for accident-related expenses you incurred. After an accident, you will probably submit an insurance claim. Some charges will be covered by your insurance. They are most frequently used for things like property damage and medical costs.
If the accident was not your fault, you will probably file a personal injury lawsuit against the at-fault party’s insurance provider. If your claim is successful, you will be awarded a settlement or court judgment that will cover your legal losses. But, that payment will also cover costs that your insurer covered. You would be the one to receive reimbursement for such costs even though your insurer covered them.
Insurance companies can act in your place and take that money if they have subrogation rights. These subrogation rights are typically contractual rights derived from your insurance coverage. If your insurer wants to file a subrogation claim to recover the money it spent on you, it must let you know in advance. Subrogation instances do not then need you to take any action: Your insurance company and the at-fault party’s insurance company handle everything.
The insurer can receive compensation directly from your settlement
The reimbursement amount your insurer is requesting would then go to them after the at-fault party makes their payment, and the remaining amount would go to you. It should be noted that if you paid a deductible to your insurer, that insurer would want to recover that money through the subrogation process in order to reimburse you.
Do you have additional questions about the subrogation process? Do you need help from a personal injury attorney? You can reach Law Offices of Fernando D. Vargas at 909-982-0707 now for a free legal consultation.
