One of the most confusing parts of any accident case is who pays for the injuries. Insurance companies don’t like to pay claims unless there is an identifiable and concrete reason for doing so. Many injured people are unaware of the requirement they repay (or reimburse) an insurance company for payments made for medical care stemming from an accident. This confusion leads to an ultimate settlement amount lower than the injured party expected. The frustration you feel at being hurt and expecting the cost to be covered, only to have that amount reduced, is great. To avoid surprises, an understanding of the interplay insurance has on your case is crucial.
Subrogation is the act of assuming the rights of another, for whom payments have been made. This occurs in the personal injury arena when an insurance company pays for care, then seeks reimbursement of those costs from the at fault party. Common instances of insurance subrogation occur in cases involving:
Knowing in advance that, if you have accepted payment from an insurance company and that reimbursement will be sought, you can get a better perspective on your case. Avoiding surprise medical liens and knowing which parties are entitled to payment allows you to pursue all remedies available to their full extent. Competent personal injury attorneys explain these complexities to you and work for reduction in lien amounts, so your recovery is maximized.