What Is a Subrogation Claim?

May 9, 2022 | Article by Chain | Cohn | Clark staff

What Is a Subrogation Claim?

Personal injury claims aren’t as simple as they seem in TV commercials. In fact, they can be incredibly complex for anyone to take on without the help of an experienced attorney. 

One issue few people know about when pursuing damages after an accident is subrogation. Subrogation gives insurance providers the right to obtain reimbursement that was paid to a client from the at-fault party. 

If you were recently injured in the state of California, it is incredibly important that you read this article. It may mean the difference between hundreds of thousands of dollars in your pocket or out of it. 

Recovering Losses Twice…or Not

Subrogation was created to prevent injured parties from doubling their earnings in a lawsuit. It is fair and just for a claimant to be reimbursed for their damages, but they should never profit off of the accident. 

Suppose a health insurance company paid a client for the medical expenses they were owed after an accident. Subrogation prevents that same client from pursuing the same damages on their own. The victim should not be compensated twice. 

Ultimately, the claimant receives their justified earnings and the insurance company that fulfilled their contractual obligation to help them now has the right to redeem their losses. 

Let’s Break Down a Subrogation Claim

When a subrogation claim is filed against an at-fault party, the insurance carrier will try to collect the money they paid to their claimant or injured party. These types of claims can provide reimbursement for benefits and money paid in the form of deductibles. 

When it comes to subrogation, there isn’t much work for you to do. In fact, there is likely nothing for you to do at all. Your Chain | Cohn | Clark lawyer should be able to handle this while you focus on your recovery. 

The right to subrogation makes it so your insurance company can compensate you for losses related to an injury you did not cause. As a result, they have the right to seek reimbursement from the at-fault party. Simply put, your insurance company is seeking to regain compensation for damages you already received from them.

This process begins with your insurance company paying you the amount you were owed in your contract, which may include your deductible. After this, if your insurance company plans to recover that compensation through subrogation, they will notify you in writing of their intent to do so. 

In a case where you do not receive a notice of subrogation, you have the right to further pursue compensation from the at-fault party on your own. 

How Does Subrogation Affect My Injury Case?

There are some cases where subrogation can affect your personal injury case. This most often has to do with the distribution of your settlement. Without subrogation, should you win, your insurance company may be sanctioned to recover some of your money whether or not the claim involved subrogation. 

With subrogation, should you win, the insurance company will go after the defendant on their own terms. This means your winnings won’t include what your insurance company already provided you.

Waivers of Subrogation 

Waivers of subrogation make it so you can prevent your insurance company from collecting earnings from the at-fault party. This type of waiver is given when an injured party wants to settle a case without their insurer’s involvement. Alert your insurance company before signing a waiver of subrogation.

Example of Subrogation

Jeff and Tim were just in a car accident. Jeff’s vehicle was damaged and needs $6,000 in repairs. Fortunately, Jeff had insurance, and further investigation into the case revealed the accident occurred because Tim was speeding. Jeff’s insurance should cover the $6,000, but now they will go after Tim through subrogation to make up their losses. That is unless Jeff has signed a waiver as mentioned above. 

Lawyers Help You Through Subrogation 

A lawyer at Chain | Cohn | Clark can most certainly walk you through a case of subrogation. We know how to maximize your compensation whether or not subrogation is a factor. Our knowledgeable attorneys can reduce subrogation claims to help finalize cases.

Contact an Insurance Attorney Today

Are you struggling to receive compensation from an insurance company? Have you had issues with subrogation? Contact an attorney at Chain | Cohn | Clark. 

Our lawyers can get you the compensation you deserve—and won’t take a dime unless you settle or win your case. Call (661) 323-4000 or fill out our online contact form to schedule an appointment today.