Subrogation allows insurance providers to recoup money it paid out because of actions taken by a third party. I cost are high enough, subrogation can mean individuals can be forced to pay back insurers for medical and other costs that were no fault of their own. Subrogation can significantly cut into any compensation from a personal injury ruling. Most insurance plans have some form of subrogation clause. It’s important that the insured be aware of these clauses and the potential impact it can have on any financial issues around personal injury.
Subrogation is common in motor vehicle accidents. Typically, a covered individual involved in an accident will call their insurance company. In most common cases, insurance will cover any expenses involved tied to medical or car repair issues. However, if the other party involved in the accident is deemed at fault, then their insurance company must cover the costs of both parties. The insurance company that has already paid out for expenses then has the right to recoup its costs. In the end, the responsibility of paying back the insurance company falls upon the insured party who received reimbursement. This can get particularly complex if for some reason the other party’s insurance coverage is insufficient or they are refusing to pay a claim.
Insurance companies can place a lien against you to force repayment. This can negatively affect a person’s financial situation. If the party at fault is required to pay a settlement, the money can be clawed back from that settlement. This reduces the financial compensation to the injured party in an accident. In order to make sure subrogation does not overwhelm an individual’s financial situation while they are dealing with the post-traumatic stress of a serious accident. It’s important to obtain the services of a capable lawyer to protect your interests and rights against subrogation.
Many insurance companies are publicly-traded companies. Under intense pressure from their shareholders they are pushing harder and harder with subrogation because it has a direct impact on their profits. Well-performing insurance companies often have processed subrogation claims at double the average rate. This means they are successful at clawing back payments to covered individuals when another party is deemed at fault.
The Woodall Law Firm law firm has experience negotiating hundreds of liens on our clients from insurance companies. We know that after suffering from personal injury in a car crash or some other accident, the last thing you want to hear is that your insurance provider wants its money back. We help our clients navigate the waters of subrogation to make sure they get the most compensation they can so they can pay for necessary rehabilitation and repairs. We specialize in large loss subrogation. Our team has experts able to investigate all loss types including fire, structural damage, large equipment and product failures, as well as water and mold damage. Our clients can attest to our dedication to excellence and our ability to work on behalf of them to make sure they are fairly compensated for their situations.