Have you ever been in a car crash and had your insurance cover the cost? People often think of insurance as a financial resource for repairs, medical bills, and maybe even a rental car while yours is in the shop. What you may not realize is that there could be another battle going on behind the scenes. It’s called subrogation, and it could have a large impact on your wallet.
Subrogation might sound like a fancy legal term, but it’s actually a pretty straightforward idea. Think of it like this: If the crash wasn’t your fault, your insurance company shouldn’t end up footing the bill for someone else’s mistake. Subrogation is their way of getting that money back and potentially saving you money down the line.
That said, subrogation can get complicated fast. Dealing with insurance companies and legalities is stressful enough on its own. If you find yourself facing a subrogation claim — whether it’s from your own insurer or someone else’s — you don’t have to go it alone.
The seasoned attorneys at Schwartzapfel Lawyers will fight for your rights and make sure you’re not left paying for an accident you didn’t cause. Contact us today for a free consultation by calling 516-342-2200 or visiting us online now. Alternatively, please continue reading.
What Is A Subrogation Claim?
In the simplest terms, subrogation means your insurance company steps into your shoes after they’ve paid out a claim. If someone else caused the damage, your insurer has the right to try and get their money back from that at-fault person (or their insurance company).
Here’s a common example: Let’s say you’re rear-ended at a red light. Your car is damaged and maybe you have a few bumps and bruises, too. Your insurance steps in, pays for the repairs, and covers your medical bills.
Now, as it’s clear that the other driver was at fault, subrogation will allow your insurance company to go after the driver to recoup what they paid.
Note: The key difference between subrogation and a regular insurance claim is who’s being paid. With a regular claim, the money goes directly to you to cover your losses.
In a subrogation case, the insurance company is essentially chasing reimbursement for the money they’ve already spent on your behalf.
When Does Subrogation Apply?
Subrogation doesn’t apply to all situations. The details of your case determine if and how subrogation comes into play. Let’s run through a few scenarios:
1. The Other Driver Has Insurance
This is the most straightforward subrogation situation. Suppose another driver runs a stop sign and T-bones your car, and they have insurance. Once your insurer pays for the damages, it’s very likely they’ll go after the other driver’s insurance company to recoup the costs.
In this behind-the-scenes insurance company battle, you are mostly out of the picture. The two insurers usually handle the details to figure out who ultimately pays the bill.
2. The Other Driver Doesn’t Have Insurance
The details can get a bit trickier if someone without insurance crashes into your car. Your insurance still kicks in to cover the damages, but your insurer might confront the uninsured driver directly.
They can send letters, file lawsuits, and take other unpleasant actions. Remember that even if you weren’t at fault in the crash, you could still end up dealing with the financial fallout.
3. Your Insurance Pays Upfront
Sometimes, it isn’t immediately clear who was at fault in a crash, and investigations can take time. Still, that doesn’t mean you should be left without a car or stuck with hefty medical bills.
In these cases, insurance companies often operate on a basis where they’ll pay now and sort it out later. Your insurer takes care of your immediate needs, and then if the other driver is found liable, they’ll likely pursue them for reimbursement through subrogation.
It’s important to note that the clock is ticking. Subrogation isn’t a process insurance companies can drag their feet on forever. Every state has what’s called a “statute of limitations” for subrogation claims.
For instance, it’s typically three (3) years in New York State. This is a time limit within which the insurer must file a claim to get their money back. If they miss that deadline, they could be out of luck.
Whether you’re facing a subrogation claim or think your own insurer is dragging its feet on the issue, you don’t have to handle this alone. Sorting through insurance jargon and legal maneuvering can be overwhelming, which is why we’re here to help.
At Schwartzapfel Lawyers, our award-winning attorneys will fight for you to ensure that your rights are maintained every step of the way. And so, for a free consultation and so much more, don’t wait! Instead, act now and call us today at 516-342-2200 or visit us online to learn how Schwartzapfel Lawyers can serve you both in and out of court.
How Do I Fight A Subrogation Claim?
Now, what happens if you are the one responsible for the accident in question? The key is not to panic. How you respond depends largely on whether you have your own insurance coverage. To illustrate this further, here are possible scenarios to consider:
1. You Have Insurance
If you have insurance and someone files a subrogation claim against you, the best step you can take is to notify your insurer immediately. Most insurance contracts require you to let them know about accidents in a timely manner, regardless of who’s at fault.
Once they’re informed, your insurance company should handle the lion’s share of the subrogation situation. Their legal team will evaluate the claim, determine fault, and work with the other insurer (or individual) trying to recoup money.
Again, your involvement may be minimal. The goal for your insurer is to prove that you were not at fault, thereby relieving you of the financial burden.
2. You Don’t Have Insurance
If you were in an accident and didn’t have insurance, the insurer of the other person involved might still try to come after you directly. This is because they’ve paid out a claim due to your actions (or what they believe to be your actions). You might receive letters, demands for payment, or even be threatened with a lawsuit.
Insurance companies often settle these types of claims for less than the full amount. They understand that even if they win a lawsuit against you, actually collecting that money might be difficult. It can be a long and costly process for them.
That said, ignoring a subrogation claim is the worst thing you can do. It probably won’t make the issue disappear. If anything, it can escalate the situation and lead to more severe legal action.
Your Best Defense Is A Knowledgeable Legal Team
Regardless of whether you have insurance, it’s important to understand your options when facing a subrogation claim. But you shouldn’t worry, as here and elsewhere, the skilled attorneys at Schwartzapfel Lawyers can help.
We’ll take over those stressful negotiations, carefully review the details of your case, and fight tirelessly to protect your interests.
So, please, don’t let a subrogation claim leave you feeling overwhelmed. Get the experienced legal representation you deserve. Contact Schwartzapfel Lawyers today — simply dial 516-342-2200 or visit us online for your free consultation. No matter your situation, it will be our honor and privilege to fight for you!
What Are Your Rights When Your Insurer Subrogates?
When your insurance company initiates subrogation proceedings, it’s not uncommon to feel disconnected from the process. However, you should remember that despite their involvement, it is you who retains such rights as:
1. The Right To Be Informed
If your insurance company decides to pursue subrogation after paying out a claim, they can’t keep you in the dark about it. Legally, they’re required to notify you that they’re seeking reimbursement from another party. As such, you should expect to receive communication explaining the situation in detail.
2. The Right To A Potential Refund Of Your Deductible
Let’s say your insurance company successfully wins its subrogation battle and recovers money from the at-fault party’s insurance or from the individual themselves. Since you originally paid your deductible out-of-pocket, you may be entitled to get that money back.
Understanding The Fine Print
Keep in mind that the specifics of your rights might vary slightly depending on your insurance contract and your state laws. That’s why it’s so important to have a knowledgeable advocate on your side.
While your insurance company might give you the basic information, they’re not obligated to make sure you thoroughly understand your rights.
The attorneys at Schwartzapfel Lawyers will make sure that you know your rights regarding subrogation when you call us today. Moreover, we will also see to it that your insurance company plays by the rules and that you receive all the money and benefits you’re entitled to.
So, please, don’t let legal jargon and red tape leave you feeling lost, and do get the support and clarity you need. Call us at 516-342-2200 or reach out to us online for a free consultation today!
Protect Yourself With Schwartzapfel Lawyers
If you or a loved one is facing a subrogation claim, please know that you don’t have to go it alone. The seasoned trial attorneys at Schwartzapfel Lawyers will fight tirelessly to protect your rights and keep your financial future intact.
As your window to recover may soon close forever, however, you shouldn’t wait to reach out for experienced legal guidance that can make all the difference down the line. To that end, we invite you to take advantage of your free consultation by dialing 516-342-2200 or connecting with us online now.
Your future is worth fighting for. Protect it today by having Schwartzapfel Lawyers fight for you!
DISCLAIMER: Nothing on this page should be considered legal advice. You should seek the appropriate counsel your situation requires. For more information, call 516-342-2200 now!
Sources:
Schwartzapfel Lawyers, P.C. | Fighting For You
Subrogation Information | Department of Financial Services
How Do Insurance Claims Work? Everything You Need to Know | Car and Driver
Subrogation in Insurance: What it Is and Why It’s Important | Investopedia
