Subrogation is an idea that's well-known among insurance and legal companies but sometimes not by the people they represent. Rather than leave it to the professionals, it is in your benefit to understand the nuances of the process. The more you know about it, the more likely it is that relevant proceedings will work out in your favor.
An insurance policy you have is an assurance that, if something bad happens to you, the firm on the other end of the policy will make restitutions in one way or another in a timely manner. If you get hurt while you're on the clock, for example, your company's workers compensation insurance pays out for medical services. Employment lawyers handle the details; you just get fixed up.
But since ascertaining who is financially responsible for services or repairs is regularly a heavily involved affair – and delay in some cases increases the damage to the policyholder – insurance firms in many cases opt to pay up front and assign blame afterward. They then need a way to get back the costs if, when all the facts are laid out, they weren't in charge of the expense.
You arrive at the Instacare with a gouged finger. You give the nurse your health insurance card and she takes down your coverage details. You get stitches and your insurance company is billed for the medical care. But the next morning, when you arrive at your place of employment – where the injury happened – you are given workers compensation forms to file. Your workers comp policy is actually responsible for the costs, not your health insurance company. It has a vested interest in getting that money back in some way.
How Does Subrogation Work?
This is where subrogation comes in. It is the process that an insurance company uses to claim payment after it has paid for something that should have been paid by some other entity. Some insurance firms have in-house property damage lawyers and personal injury attorneys, or a department dedicated to subrogation; others contract with a law firm. Normally, only you can sue for damages done to your person or property. But under subrogation law, your insurance company is extended some of your rights for making good on the damages. It can go after the money that was originally due to you, because it has covered the amount already.
How Does This Affect the Insured?
For one thing, if you have a deductible, your insurance company wasn't the only one who had to pay. In a $10,000 accident with a $1,000 deductible, you lost some money too – to the tune of $1,000. If your insurer is timid on any subrogation case it might not win, it might opt to recover its costs by ballooning your premiums and call it a day. On the other hand, if it has a proficient legal team and goes after them enthusiastically, it is doing you a favor as well as itself. If all $10,000 is recovered, you will get your full $1,000 deductible back. If it recovers half (for instance, in a case where you are found one-half at fault), you'll typically get $500 back, depending on the laws in your state.
Additionally, if the total price of an accident is more than your maximum coverage amount, you may have had to pay the difference, which can be extremely expensive. If your insurance company or its property damage lawyers, such as attorneys for disability claims whitewater wi, pursue subrogation and wins, it will recover your losses as well as its own.
All insurers are not created equal. When shopping around, it's worth researching the reputations of competing agencies to evaluate whether they pursue winnable subrogation claims; if they resolve those claims without dragging their feet; if they keep their customers updated as the case continues; and if they then process successfully won reimbursements immediately so that you can get your funding back and move on with your life. If, on the other hand, an insurer has a reputation of honoring claims that aren't its responsibility and then protecting its profitability by raising your premiums, you'll feel the sting later.attorneys for disability claims whitewater wi