If you are part of a motor vehicle accident, it's likely that you will make an insurance claim in the near future. When doing so, it's up to your insurance company to collect money from the at-fault party. This is known as subrogation.
While this typically happens behind the scenes, without you being personally involved, it's still important to understand the finer details of subrogation, including any impact it will have on your claim.
If you carry any type of first party car insurance, you're likely to deal with subrogation in the event of an accident. The most common types of first party insurance include:
- Medical payments insurance and personal injury protection
- Comprehensive and collision insurance
- Uninsured and underinsured motorist insurance
Your insurance company is required to tell you if they are going to subrogate your insurance claim. If they go down this path, any deductible you were responsible for paying is required to be part of the money your insurer seeks to recover.
If your insurer decides against subrogation, you are then in position to file a lawsuit against the at-fault party with the idea of receiving compensation.
Even though you won't be a big part of the subrogation process, you always want to know what's going on. Simply passing things over to your insurance agent is never a good idea, as you don't know if they are going to work with your best interests in mind.
There is a lot that happens during the aftermath of a motor vehicle accident. Understanding your legal rights, subrogation and how the insurance claim process works can help clear your mind.
Source: WalletHub, "Subrogation: What It Is and How It Applies to Car Insurance," Karl Eisenhower, accessed Jan. 19, 2018