Setareh Law
October 16, 2024
When you file a personal injury claim, your insurance company may cover your medical expenses and other damages upfront. However, if another party is found liable for your injuries, your insurer has the right to seek reimbursement from that party or their insurance company. This process of subrogation can affect your compensation in several ways, including potential reductions based on what your insurer recovers.
At Setareh Law, we understand that the intricacies of subrogation can be overwhelming. Our experienced attorneys are here to guide you through each step of the personal injury claim process, ensuring that you are fully informed about your rights and options.
What Is Subrogation?
Subrogation is a legal doctrine that allows an insurance company to step into the shoes of the insured party after they have compensated them for a loss. Essentially, once the insurer pays for your damages, they gain the right to seek reimbursement from the party responsible for the accident. This process helps insurers mitigate their losses and can affect the dynamics of your personal injury claim.
The mechanism of subrogation ensures that the responsible party is held accountable for their actions. For instance, if you are involved in a car accident caused by another driver, your insurance may pay for your medical expenses or vehicle repairs. In turn, your insurer has the right to pursue that other driver or their insurance company to recover the costs they absorbed. This process not only aids in regaining some of the losses incurred but also reinforces accountability within the insurance system.
Example of Subrogation in Personal Injury Cases
Consider a scenario where you are injured in a slip-and-fall accident at a grocery store due to the store’s negligence. Your health insurance covers your medical bills, which total $10,000. After you recover, your insurance company may initiate a subrogation claim against the grocery store’s liability insurance to recover the money they spent on your behalf.
In this case, if your health insurer successfully recovers the $10,000 from the grocery store, it could significantly affect your overall compensation in a personal injury lawsuit. If you also pursue a claim against the store for pain and suffering, the amount your health insurance company recovers may be deducted from any settlement you receive.
Who Has Subrogation Rights?
Subrogation rights primarily belong to insurance companies, but they can also extend to other parties involved in the claim process. When an insurance company pays for your damages, they acquire the right to recover those costs from the at-fault party. Sometimes, medical providers may have subrogation rights if they have a lien on your settlement due to the treatments you received. This means that if you receive compensation, they may seek reimbursement for the medical expenses they covered.
Contact Our Personal Injury Lawyers at Setareh Law Today
An experienced attorney can provide you with valuable insights and help you understand your rights regarding subrogation, ensuring that you do not leave any potential compensation on the table. We can assist you in negotiating with your insurer and any third-party claimants, protecting your interests throughout the process.
At Setareh Law, our team is dedicated to helping you understand the complexities of your personal injury claim, including subrogation. We can work with you to devise a strategy that maximizes your compensation while navigating the potential pitfalls of subrogation. Contact Setareh Law at (310) 659-1826 or fill out our contact form to schedule a consultation to discuss your personal injury case. Our team also speaks Spanish.
