If you have an insurance claim, such as after a car accident, you may come across the term “subrogation.” A subrogation claim is a way for you to recover financial compensation for an accident or injury before fault is determined. It can help you recover compensation faster from an accident, allowing you to start moving forward without having to wait for the completion of an investigation or liability dispute. Learn more about a subrogation claim in Atlanta, Georgia, with assistance from an attorney.
What Is Insurance Subrogation?
Subrogation is a process where one insurance company pays a claimant financial damages that are owed to the claimant by a third party, such as another insurance company. The party that paid the subrogation claim will then seek reimbursement from the at-fault party. Subrogation allows an accident victim to receive the financial benefits that he or she needs to pay for immediate bills and move forward without having to wait for an insurance company to determine fault.
Subrogation generally takes place between two insurance companies. A common example of insurance subrogation is a health insurance company paying for the initial costs of a car accident for a victim, only to be reimbursed later by the at-fault driver’s car insurance company. Subrogation benefits policyholders, as it enables them to receive financial compensation more quickly. It also keeps insurance premiums low for the party that did not cause the accident.
How Does Subrogation Work?
After you get injured in an accident in Atlanta, call your own insurance provider to file an initial claim. This may be your auto, homeowners, or health insurance company, depending on the type of accident and your losses. Your insurance company will investigate the accident to search for signs of someone else’s fault, such as another driver. If your insurer believes that someone else is at fault but that the third-party claims process will take a long time, it may pay your bills upfront and use subrogation to seek reimbursement from the at-fault party later.
You will receive a settlement check from your own insurance company after it offers to step in to pay for your medical bills, property repairs and other expenses upfront. Then, you can rest and heal while your insurance company uses a subrogation claim to recoup what it spent on your losses from the at-fault party’s insurance company (if the accident was not your fault). If the subrogation claim succeeds, your insurer will receive a refund. You can also receive a refund for anything that you spent on the accident, including insurance deductibles.
If you are found to be at fault for the accident after your own insurance company has already paid, you may be responsible for reimbursing the insurance company yourself. You may have the correct type of insurance to cover these costs, such as a car insurance policy with personal injury protection, medical payment, collision or comprehensive coverage for a car accident. If not, you may be financially indebted to your insurance company.
If you are not entirely at fault for the accident, you may only be responsible for reimbursing your company for the percentage of fault allocated to you. In this case, your insurance company can still choose to subrogate the other party’s insurance provider to recoup some or all of the accident costs.
How Can an Attorney Help?
You do not have to do much during the insurance subrogation process. For the most part, this type of claim takes place between two insurance companies and does not involve the policyholder. If you run into any problems with your claim, however, such as another party refuting fault or your insurance company refusing to offer fair financial compensation, consult with a personal injury attorney in Atlanta for assistance. An attorney from BMW Law can help explain subrogation as it applies to your particular case.