“Subrogation” is an important concept in many personal injury claims. But just what is it, and how can it affect your case? Cain Law explains the basics of subrogation and what to expect as you pursue compensation after an injury that was not your fault.
What Is Subrogation?
“Subrogation” describes an insurance company’s right to collect money from your injury claim settlement in certain circumstances. Specifically, when your insurance company pays for some or all of your expenses after an injury, subrogation laws allow the insurance company to recoup its losses if you obtain compensation through an injury claim settlement with an at-fault party.
What Is the Purpose of Subrogation?
The purpose of subrogation is to protect you and your insurance company from paying out-of-pocket for losses that are not your fault. If someone else causes your injury, they are responsible for compensating you. However, recovering this compensation can take time, during which your insurance provider could be left to foot your injury-related bills. Subrogation allows your insurer to recover the money it spent on you from the liable party’s insurance provider.
How Does Subrogation Work in a Personal Injury Claim?
In most personal injury claims, you won’t need to worry about subrogation. Your insurance company should manage the process on its own by working with the other party’s insurance company. However, the insurance company will usually file a subrogation claim against the other party in your name, and if so, it should notify you. Your OKC injury attorney can also talk to the insurance company on your behalf if you have any questions or concerns.
What to Expect During the Process
The outcome of your insurance company’s subrogation claim could impact your insurance costs or other out-of-pocket expenses you incurred. For instance, you might not get your deductible back if the insurance company cannot obtain full reimbursement from the liable party through subrogation.
What Is a Waiver of Subrogation?
A waiver of subrogation is an endorsement that prevents your insurance provider from pursuing subrogation claims against other parties. If you signed a waiver of subrogation before your injury claim, it would effectively transfer the entire financial burden of your injuries to your insurer. Insurance companies generally dislike maintaining this level of risk, so denying their right to subrogation could result in increased premiums or total denial of coverage.
What Happens If You Pursue Your Own Injury Claim?
While you could pursue your injury claim independently, doing so can be risky. Without experienced legal guidance from an experienced car accident lawyer, you might agree to a lowball settlement offer that does not leave you with adequate financial security after your insurer has taken its share of your compensation through subrogation. Working with a knowledgeable injury lawyer when you file a claim is always a smart idea.
Contact a Personal Injury Lawyer in Oklahoma City for Help
If you still have questions about subrogation or wish to discuss your case with an OKC injury attorney, contact Cain Law immediately. We can provide the answers you need and evaluate your case for free in a free initial consultation session.
