Subrogation is a right that most auto insurers reserve that allows them to pursue a third party that caused a loss to that auto insurer. For example, if a car crash caused property damage to an insured person, and he or she had their car repaired pursuant to their collision coverage with their own insurer, that insurer will substitute in and “stand in the shoes” of its insured person in an attempt to collect its loss from either the person who caused the accident or their insurer. Therefore, assuming that a collision coverage deductible was paid by the insured person, that sum is usually reimbursed if the subrogation efforts are successful. Additionally, subrogation actions between different insurance companies are common. Most insurance companies even have their own subrogation departments.
Health Care Subrogation
Subrogation isn’t exclusive to auto insurers. If a person is injured in an accident through the fault of somebody else, and his or her insurer pays the injured person’s medical bills, that insurer likely has reserved a right of reimbursement from its insured person is he is compensated for their damages by the at fault party.
When Does the Process Begin?
Unless the insured person has agreed otherwise, the subrogation process starts when an insurance company fully pays out on the losses incurred by its insured person. That’s when the insurance company starts the process of collecting its payment from either the person who caused the accident or his or her insurer. That insurance company has no greater rights than its insured person, and it Is only permitted to pursue its subrogation rights against somebody who could have been pursued by its policyholder. If both parties to an accident are insured, it’s not at all unusual for a subrogation action to be between two insurance companies like Allstate and State Farm.
Nearly all subrogation claims settle. Your focus should be on obtaining the compensation that you deserve for your personal injury damages. Those would likely consist of your medical bills, lost time from work, any permanent disfigurement or disability and pain and suffering. The only time that these might be subject to subrogation by your insurance company against a third party is if you’re bringing an uninsured motorist or underinsured motorist claim. After being in an accident that was caused by somebody else anywhere in California, contact our personal injury lawyer at Maison Law right away for a free consultation and case evaluation. Should you be concerned about subrogation, we can answer your questions at that time. We might even be able to use California subrogation law to your advantage. If we enter into a retainer agreement, our goal will be to obtain the highest settlement or award that you deserve.
Contact a Personal Injury Lawyer
After an accident involving a serious injury in the Central Valley, contact attorney Martin Gasparian for a free consultation and case evaluation. Mr. Gasparian takes a hands-on approach to every case. He believes that every client should work directly with their lawyer, get honest advice and personalized attention to detail their case deserves.
