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Understanding Subrogation After A Car Accident

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The word subrogation may be associated with a car accident case, and many may not understand its meaning. If you have been hit by a careless driver that left you with injuries, you should know how subrogation can affect your case. Read on and find out more. 

What Is Subrogation?

Subrogation can have a significant impact on a car accident case, particularly when it comes to insurance claims and settlements. Subrogation is the process by which an insurance company steps into the shoes of its insured to pursue a claim against a third party who may be responsible for the loss. This means that if your insurance company pays for damages or injuries resulting from a car accident, the insurance company may seek reimbursement from the at-fault driver or their insurance company.

Car Accident Case Subrogation

In a car accident case, subrogation can impact the amount of compensation available to the parties involved. For example, if a healthcare insurance company pays for medical expenses resulting from a car accident, it may seek reimbursement from the at-fault driver or its insurance company. This can affect the amount of money available for a settlement, as the insurance company may seek to recoup some or all of the costs it has paid out. 

Some insurers will agree to pay property damage for their clients and then seek reimbursement later from the at-fault driver's insurer. For instance, if your insurer is State Farm and the other insurer is Progressive, they may have accepted liability for the accident damages. State Farm may pay you for your vehicle within a few weeks. That allows you to purchase another vehicle without waiting for the other insurer to pay the claim. Then, State Farm will seek payment from Progressive to cover their subrogation claim. 

Others Subrogation Issues

Subrogation can complicate negotiations between the parties involved in a car accident case. If an insurance company is seeking reimbursement, it may be more difficult to reach a settlement agreement that satisfies all parties. For example, your healthcare insurer may need to be paid before you can be paid. In many cases, subrogation presents a requirement to pay certain payors first and pay you later. 

Subrogation is an important consideration in car accident cases, particularly in cases where insurance companies are involved. Work with an auto accident attorney who can navigate the complexities of subrogation and help ensure that your rights are protected throughout the legal process.