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What Is Subrogation In A Car Accident Case?

If you or somebody you care about has been injured in a car accident caused by the careless or negligent actions of another person, you should be entitled to compensation for what happened, though securing the compensation you need is not always easy. The at-fault party’s insurance carrier rarely pays compensation immediately, and it may be necessary for you to turn to your personal health insurance carrier to help pay your bills in the interim. However, it is likely that you will have to pay your insurance carrier back after the at-fault party’s car insurance carrier finally does make a settlement. This is a process called subrogation, and we want to discuss what that entails and whether you need legal assistance.

Defining Subrogation

The term “subrogation” is broadly defined to mean that one person will stand in the place of another person regarding a debt. In other words, when an individual or entity pays a debt that is generally the responsibility of another party altogether, then the person who originally pays the debt will be entitled to reimbursement from the person who actually owes the debt.

The definition may seem a little complicated to understand, but it will certainly make more sense when we apply this to a car accident case.

How Does Subrogation Work in a Boston Car Accident Case?

Suppose Jackson gets injured in a car accident that is caused by Susie. Ultimately, Susie’s auto insurance is going to be responsible for paying Jackson’s medical expenses, but her insurance carrier will likely not pay immediately. In the interim, Jackson has immediate medical expenses that need to be taken care of. When Jackson seeks medical care while awaiting a settlement from Susie’s insurance carrier, he is going to use his personal health insurance to cover his initial medical bills, which equals $50,000.

When Susie’s auto insurance carrier finally reaches a settlement agreement, and Jackson receives payment for his medical bills, lost wages, property damage, and other out-of-pocket expenses he has incurred, his personal health insurance carrier has the right to be reimbursed for the $50,000 they paid in his medical bills. This right to reimbursement is called subrogation and is typically going to be written into the health insurance policy. After the health insurance carrier recovers their portion of the money, Jackson will receive the remaining settlement amount.

Call Us For a Consultation Of Your Case Today

If you or somebody you love has been injured in an accident caused by another person’s careless or negligent driving, seek legal assistance today. At Colucci, Colucci & Marcus, P.C., we want to ensure that you receive the compensation you are entitled to. Our team will also help with any subrogation claims involving your case to ensure that you receive every bit of compensation you are entitled to. When you need a Boston car accident attorney, you can contact us for a free consultation of your case by clicking here or by calling 617-917-3917.

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