Being involved in a car accident can be one of the worst experiences you can have. Apart from the recovery process itself, the aftermath of an auto accident involves complex procedures dealing with insurance companies and addressing the legal issues that arise from the accident.
However, if the accident happens in Texas, you can find the TxDOT crash report online yourself. All you have to do is enter the requested information, such as the collision’s ZIP code, date, and your car‘s VIN. Having access to this document can help you with the insurance claim process.
If you have never been involved in a car accident, you might not be well aware of the term “subrogation.” You might have heard about how some people have to repay their health and auto insurance companies after winning a settlement in their car accident cases. Subrogation is a term linked to insurance benefits and contracts.
It revolves around the negotiations that typically take place between attorneys and insurance companies behind the scenes. It is probably the reason why you might not have heard of the term. However, it is important to understand the subrogation rights for insurance companies if you are ever in an accident in Florida so you know how to proceed when working with qualified West Palm Beach personal injury lawyers.
Today’s post will be a basic guide on subrogation so you can understand why people injured in Florida car accidents may have to repay their health and auto insurance companies.
What Exactly Is Subrogation?
Subrogation essentially means substituting one party for another when concerning debts or any legal claims. The goal behind subrogation is to essentially enforce the final payment of the settlement amount from the at-fault driver in an auto accident case, preventing double recovery from the victim.
Suppose that you were in a car accident, your auto insurance provides partial coverage for your lost wages, and you win the auto accident claim against the other driver involved. In that case, a part of the compensation you receive will be the lost wages. Your insurance company will have the right to subrogation, and they can reclaim any of the money it rewarded you through the no-fault system.
Let’s suppose another situation where your health insurance company covered the entire medical expenses for your recovery after a crash, and you are later rewarded medical bills as part of the settlement by the at-fault driver’s insurance company. In that case, your insurance company can put a lien on those awards to reclaim the medical costs it previously covered for you.
This prevents you from getting twice the amount for the expenses that have already been covered for you, and the at-fault party is ultimately held liable for all the damages. If your health insurance company offered partial coverage for the medical expenses during your recovery, it can exercise its subrogation rights to reclaim only the amount it paid toward your expenses. Any amount you might have paid out-of-pocket, and it was not covered by your insurance company will be rightfully yours when you receive the settlement.
As such, any sources that made payments for injuries might have a legal claim on the amount they paid from the settlement you win from the at-fault party in your personal injury case. The most common parties that find themselves asserting subrogation rights after an auto accident include health insurers, Medicare, Medicaid, MedPay, and Uninsured or Underinsured Motorist Insurance providers.
An important fact to note regarding subrogation is that insurance companies can exercise the right, provided that their customer was not the party responsible for causing the crash. It means that your insurance company cannot attempt to reclaim any of the amounts they have paid as part of your insurance coverage if you were the at-fault driver in the auto accident case.
Another crucial thing to remember regarding subrogation laws in Florida is the Personal Injury Protection (PIP) benefits. The mandatory PIP coverage under Florida’s no-fault auto insurance law offers significant coverage for many of the damages that you might incur in an auto accident.
Any benefits you receive through your PIP are not subject to subrogation laws. It is better to discuss your PIP coverage and how subrogation might have an impact on the settlement you receive through it with an experienced car accident lawyer.
The Sunshine State’s Contract Law Concerning Subrogation Claims
Florida is strict when it comes to practicing high standards for insurance company contracts and subrogation rights. One of the most important things covered in Florida’s contract law regarding insurance companies and subrogation rights is that victims receiving any settlements from at-fault drivers in an auto accident case must inform their concerned insurance provider in writing before they accept any settlement from the at-fault driver.
From that point, the insurance company has 30 days within which it must decide whether to exercise subrogation rights. If the insurance company foregoes its subrogation rights, you can expect to get the settlement amount without deductions to repay the insurance company.
Why You Should Consider Working with Experienced Accident Attorneys
The thought of having to deal with subrogation to repay your insurance companies after an accident is terrifying. Fortunately, it does not have to be a problem you have to concern yourself with.
When you work with a qualified auto accident attorney, you might never have to bother with dealing with the term subrogation. It is typically one of the last steps in bringing auto accident settlements to a conclusion and handled by your legal team without you having to worry about any of it.
If you work with qualified attorneys, they are the ones who will handle dealing with any subrogation issues with your insurance company and the at-fault driver’s insurer if necessary.
If you are looking for qualified West Palm Beach personal injury lawyers you should work with in any future auto accident cases, consider calling an Injury Lawyer. The firm has a strong reputation for providing its clients with desirable outcomes for their personal injury cases. You can rest assured that they will handle the subrogation procedures for you and answer any questions you might have regarding it.
