Subrogation

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What is Subrogation?

Subrogation is common in personal injury cases and usually comes from insurance companies. Subrogation is the right your insurance company holds under your insurance policy — after they’ve paid your medical bills and additional damages— to request reimbursement from the at-fault party. 

Most of the time, insurance companies are involved in subrogation because they pay a big part of an accident victim’s bills. For example, if your insurance company paid for your medical bills or car repairs after an accident, they need to get that money back from the other party’s insurance company.

How Does Subrogation Work?

Let’s say you get injured in a car accident with a driver who doesn’t have car insurance. Your insurance company steps in because you have “uninsured motorist” coverage. They pay your medical bills of $14,000.

You file a lawsuit against the driver who didn’t have insurance. The court rules in your favor and tells the driver to pay you a total of $20,000, which includes the cost of your medical bills and $6,000 for pain and suffering.

Your insurance company files a subrogation action and asks for $14,000 of your $20,000 verdict. This pays the insurance company back the money for your medical bills. The remaining $6,000 is yours to keep.

Is Subrogation Fair?

Subrogation can be frustrating because it seems like someone else is stepping in to take your money. But if the insurance company didn’t pay for your medical bills, you would have to pay out of pocket and most likely go into debt. Subrogation is a way to ensure everyone gets paid what they should.

Is Subrogation Common?

When an insurance company covers part or all of the cost of a lawsuit and another party is found responsible, subrogation can happen. It occurs most often in personal injury cases like:

  • Auto Accident Claims
  • Motorcycle Accident Claims
  • Truck Accident Claims
  • Medical Malpractice Claims
  • Bike Accident Claims
  • Pedestrian Accident Claims
  • Slip and Fall Accident Claims
  • Workers’ Compensation Claims
  • Nursing Home Abuse Claims
  • Faulty Medical Device Claims

Contact the Personal Injury Lawyers at The Brown Firm

If you have been injured in an accident where you were not at fault, the experienced personal injury attorneys at The Brown Firm offer free consultations to accident victims in Georgia and South Carolina. Call 800-529-1441 to speak with our personal injury team today!

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