Most people who are injured in a car accident are able to obtain compensation for their injuries. In the event that someone else was at fault, that money will likely come from the at-fault party’s insurance company. However, if an insurance claim is unresolved for a long period of time, you may need the money sooner rather than later. You may decide to pay your deductible to your own insurance company and collect compensation from them.
While you may be able to do this, the money you get is likely subject to a subrogation clause in your insurance policy. This essentially means that your car insurance company can recover the money they pay you from the at-fault party. Keep reading to better understand this concept, then contact Law Offices of Fernando D. Vargas at 909-982-0707 if you are in need of a free legal consultation.
What Exactly is Subrogation?
Subrogation is the right of your insurance company to pursue a third party who was responsible for your injuries. In other words, if they pay you for your accident-related costs, they can then file a claim against the at-fault party. If subrogation wasn’t written into your policy, they would not have this right.
Your Insurance Company May Be Able to Subrogate Your Claim Even if You Are Partially at Fault
Even if you are partially at fault for the accident, your insurance company could potentially be repaid for benefits they pay to you. That said, they may not get all of the benefits they paid to you – they would get a percentage of your total damages. The percentage they get would depend on how much of the accident was deemed to be your fault. For example, if you are found to be 25% at fault then the insurance company would be eligible to subrogate only 75% of your damages.
You May Get Your Deductible Back
If your insurance company goes after the at-fault party, they can also recover your deductible along with any out of pocket costs you were not reimbursed for. That said, the amount you get will be reduced by your percentage of fault. For example, if you broke your leg and your deductible was $1,000, but you were found to be 25% at fault, you would only get $750 of your deductible back.
Subrogation Does Not Only Apply to Insurance Companies
Your insurance company can technically use subrogation to go after a third party who is not an insurance company. They are legally allowed to demand compensation from any third party who was at fault. If the at-fault party did not have insurance, then your insurer could sue the individual directly.
Do you have additional questions about subrogation? Are you wondering how it might affect your specific case? Then contact Law Offices of Fernando D. Vargas at 909-982-0707 for your free legal consultation.