If you’re injured in a car crash or other incident that’s the result of another person’s negligence, you may decide that you need to pursue a personal injury claim. These cases can become complex, even if they seem simple on the surface.
One issue that can occur in some cases is subrogation, which occurs when a third party — typically a health insurer or auto insurer — pays for some of your medical bills or other expenses after an accident. Later, if you recover money from the person or company responsible for your injury, your insurer may ask to be reimbursed from that settlement.
The potential impact on your settlement
Subrogation can significantly affect how much of your settlement you actually get to keep. If your insurer has a valid subrogation claim, they may be entitled to a portion of your recovery. In some cases, this can mean having to pay thousands of dollars of your settlement back.
Fortunately, there are ways to negotiate. Some insurers are willing to reduce the amount they seek, especially if the settlement doesn’t fully cover all of your damages. Others may waive subrogation completely under certain policies. It often depends on the specific terms of your insurance plan and state laws governing reimbursement rights.
Understanding your rights and how subrogation may impact your settlement should play a role in how you work toward the resolution of your personal injury claim. Because of the complexities of these situations, it may benefit you to get legal guidance to help you understand your options so you can do what’s in your best interests.