How Does Subrogation Works in Automobile Accident Claims
After facing an auto accident, you may sustain injuries and may experience financial burdens owing to hefty medical expenses. Subrogation of a claim works as follows:
If your auto insurance company pays you for an automobile accident claim, and the other person is responsible for the accident, your auto insurance company has the right to pursue a suit to be reimbursed by the other party or their insurance carrier. Therefore, you have to work with your insurance carrier to get them reimbursement.
The claims process should be completely transparent, and the auto insurance company’s subrogation claim should not affect the compensation that you receive as a victim. With the subrogation claim, you would receive your claim as well as the deductible amount. You can ask your insurance agency to provide a complete record and statement of account for the settlements. You have the legal right to ask for this documentation.
Subrogation can increase your chances of receiving a fair settlement in many instances. In some cases, subrogation can help you recover compensation for your damages and medical bills.
What Is Subrogation?
Most personal injury claims involve complicated and time-consuming legal processes. One complex concept is subrogation. Subrogation refers to the right held by the insurance carriers to legally pursue a third party causing loss to the insured, but already compensated by the insurance company.
Subrogation is a legal right that insurance companies hold to pursue a third-party claim. It is beneficial for insurance agencies when third parties are responsible for an accident and share the total liability.
A subrogation claim is made to recover the amount paid by the insurance carrier to the insured for any loss.
With subrogation, insurance companies have the right to sue a third party to recover compensation. When you are not responsible for the accident, it can help them recover the damages paid in a claim. The companies cannot file a subrogation claim without informing the victim. They must inform their insured before proceeding and filing a claim.
What Is The Purpose Of Subrogation?
Subrogation allows the insurer to recoup the expenses spent on medical treatment, and repairs including all your deductibles. Your deductible will be reimbursed from the insurance carrier of the party who is at fault if you were not at fault.
You may therefore be called upon to submit proof of your deductible costs paid out of pocket. Subrogation will be considered successful when you and your insurer receive the amount expended, as a settlement from the other party’s insurance company or judgment against the other party.
Why Do Insurance Companies File Subrogation Claims?
As mentioned above, filing a subrogation claim can benefit the insurance companies when you do not share in the fault. There are various other situations in which it may be beneficial for insurance companies to pursue a subrogation claim.
The insurance carrier has to inform you if they plan to seek reimbursement via subrogation. You may have the legal right to sue the insurance company if you have no information about its decision.
At times, insurance companies do not inform their clients when they are filing for subrogation. If this happens, you can consider taking legal action.
Does Subrogation Prevent Double Recovery?
It is important to realize that subrogation prevents double recovery. Therefore, you would not be able to recover the same compensation twice via different methods.
For instance, the subrogation claim will ensure that you do not recover compensation for medical bills twice. It will not cover compensation that has already been covered in another insurance policy. Instead, it is a tool to allocate fault and liability between insurance companies.
How may subrogation affect your claim?
Subrogation prevents double recovery and may affect your claim. For example, if you succeed in a personal injury insurance claim or lawsuit, you may have to share the settlement or award with your insurance company. However, it would entirely depend on whether it was in the process of subrogation.
With a subrogation claim, the insurance company would receive benefits directly from the third party, and you would not have to share anything that you receive.
It can be helpful to keep in mind that your benefits can exclude the medical and other expenses that have been already covered through other means. If you have any questions, you can ask your insurance company directly.
How Can A Lawyer Help With A Subrogation Claim?
Work with a Philadelphia car accident lawyer, who can help you understand the entire process for subrogation. They can help you navigate the process seamlessly and deal with the subrogation process.
It is a difficult task to persuade an insurance company to help in reducing the claim to agree to a settlement. An attorney can assist with negotiations. Understanding matters relating to subrogation and protecting your rights will also be more easily done with the advice of an attorney.