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Is your insurance settlement subject to subrogation?

If you get into a wreck with an at-fault driver, you may be able to file a claim for compensation. However, doing so can cause you to be subjected to claims for subrogation from your insurance provider.

This occurs when a person gets hurt and another person is responsible for his or her injuries, but the injured party's insurer covered the medical bills. When the injured person seeks compensation, the insurance company has the right to be reimbursed for the costs of the medical treatment.

Subrogation means that another party or individual stands in place of another. Subrogation claims are filed by "collateral sources," i.e., the insurance company. Collateral sources with subrogation claims aren't entitled to greater rights than the person with the benefits has in the matter, however. Also, the collateral source provider can be subject to the same legal defenses used against the injured party.

Why this is necessary

Subrogation claims ensure that any jury award or settlement is used to repay the collateral source for any paid benefits to or on behalf of the injured party. Subrogation is based on the concept that while injured parties deserve compensation for their damages, they do not have the right to make a profit on their loss with a "double recovery."

Subrogation issues can arise that may affect your potential settlement or future medical benefits related to the accident. If a problem develops, alert your Rochester personal injury attorney immediately. He or she can take the necessary actions to ensure that your rights to compensation and continued medical care for your injuries are protected.

Source: FindLaw, "What is a subrogation action?," accessed March 23, 2018

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