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What Is a Subrogation Claim?

By Butler Prather LLP on July 27, 2020

Most people have never heard of a subrogation claim unless they have been involved in an accident in which their auto insurance or health insurance carriers were reimbursed for payments they made on their behalf. However, understanding a subrogation claim may be an important part of any personal injury case you may be involved in.

subrogation claim

What does subrogation mean?

The word “subrogation,” at its basic form, means that one person will stand in the place of another regarding a debt. When an entity or another individual pays the debt that is ultimately the responsibility of another person, then the person who paid the debt originally may be entitled to reimbursement from the person who owed the debt in the first place.

That may seem confusing, but this can have implications when it comes to car accident cases or other personal injury claims.

Why does subrogation matter for injury claims?

If you or somebody you care about is injured in an accident caused by the negligence of somebody else, there may be various ways that you receive compensation for your injuries. In the immediate aftermath of an accident, your own insurance carrier may pay for damages you have sustained in the accident, even if another person was at fault. However, your insurance carrier will typically have the right under the terms of your policy to be paid back the amount of money they spent on your claim if you collect any damages from the party who was at fault for the incident.

Anytime your insurance carrier pays benefits for your injury claim under circumstances in which another party was at fault, then your insurance carrier will notify the at-fault party (or their insurance carrier) of its subrogation claim.

How will this affect your personal injury case?

In the event you receive a settlement from the at-fault party or their insurance carrier, or if you are successful in a personal injury lawsuit against the at-fault party, you need to know that you may be responsible for paying back your insurance carrier out of any damages that are awarded. While there is no set amount of money awarded for a personal injury claim, this news can be shocking for many people who expect a large settlement only to learn that they have to hand over a significant portion of it to their insurance carrier.

It is a good idea to have a skilled Atlanta personal injury lawyer by your side for any injury claim you make against another party. An attorney can handle subrogation claims in order to maximize the recovery that you receive in a settlement. By involving a personal injury attorney early in the process, you will have a better chance of receiving a larger settlement. An attorney may be able to work out favorable arrangements with your insurance carrier on any subrogation claim that you may owe. In some cases, an insurance carrier may be persuaded to reduce their subrogation claim.

What types of compensation are usually available in these cases?

If you or somebody you care about is injured due to the negligence of another person, there are various types of compensation That may be available. This can include coverage for all accident-related medical bills, lost income if a victim is unable to work while they recover, pain and suffering damages, general household out-of-pocket expenses, and more.

Posted in: Car Accidents

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