Paying Back Your Insurance Company – Subrogation

This is the quick and simply explanation of subrogation. If you hire a personal injury attorney, you won’t need to understand any of this! However, for those who are curious, here is the very basic overview that may or may not quite apply to your scenario. Did you catch that? Subrogation is one of the very technical and highly negotiated aspects to personal injury cases. So, we can not overstate how overly basic the following information is in terms of the actual practice of subrogation. This is simply to give people an introduction to the topic.

How Subrogation Works in an Auto Personal Injury Claim


Your Insurance Pays the Claim


If you are injured in an auto accident, your insurance company may initially pay for your medical bills, car repairs, or other related expenses, depending on the type of coverage you have (e.g., personal injury protection (PIP) or medical payments (MedPay) coverage).


Determination of Fault


If another driver is determined to be at fault for the accident, your insurance company may seek reimbursement from that driver’s insurance company through subrogation.


Subrogation Process


Your insurance company will initiate the subrogation process by filing a claim against the at-fault driver’s insurance. If successful, they recover the money they paid you.


Impact on Your Deductible


If you paid a deductible, subrogation might also allow you to get reimbursed for it. Once your insurance company recovers the costs through subrogation, they may return the deductible to you.


Your Role in Subrogation


While subrogation is generally handled by your insurance company, you may need to cooperate by providing information or documentation. In some cases, you may also need to sign a subrogation agreement that transfers your rights to pursue a claim to your insurer.

Auto Accident Overview

Motorcycle Accident Overview

An Example That A Kid Could Understand!

Imagine you’re playing baseball with your friends, and you accidentally hit the ball through a neighbor’s window, breaking it. You don’t have enough money to pay for the window, so your older sibling lends you the money to pay the neighbor.

Later, your parents find out that it wasn’t really your fault because your friend told you to hit the ball toward the window. Since it’s really your friend’s fault, your sibling decides to ask your friend to pay back the money they gave you to fix the window.

This is kind of like what happens in subrogation. You are like the person who got into an accident and needs money to pay for damages.

Your sibling is like your insurance company, who helps you out by paying the money first.

Your friend is like the person who caused the accident. They should be the one to pay for the damage.

So, subrogation is when your insurance company pays to help you after an accident, but then asks the person who caused the accident to pay them back.

Real World Adult Considerations


Settlement Offers

If you settle directly with the at-fault party or their insurance, you must be cautious. Settling without considering your insurance company’s subrogation rights might make you liable for the amount your insurance paid on your behalf.

In some cases, your insurance policy may require you to assist in the subrogation process, including providing testimony or evidence if needed.

Understanding subrogation is important because it affects how claims are settled and who ultimately bears the financial responsibility for the accident.

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If you were injured in western Washington due to someone else’s negligence, give our attorneys a call to see how we can help. (360) 792-1000

Ryan and Jen Witt of Witt Law Group, Kitsap County defense and personal injury lawyers

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Whether you choose to handle your case alone or engage the Witt Law Group, being informed and prepared is essential. Early involvement of an attorney can significantly impact your chances of a fair recovery, allowing you to focus on healing while we handle negotiations with insurance adjusters to secure fair compensation for your injuries.

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