After an accident, your insurance providers might pay for certain losses you’ve suffered, like your medical bills and vehicle repairs. However, if someone else caused the accident, your insurer will likely seek reimbursement for the benefits it paid you through a subrogation claim against the at-fault party’s insurer.
Depending on the terms of your insurance policy, your insurer may have the right to pursue an accident claim on your behalf, which could affect your ability to do so yourself. On the other hand, if the other party puts the blame on you, their insurers may file subrogation claims against you.
If your insurance company tries to subrogate your accident claim or you receive a subrogation letter from the other party’s insurer, you need to talk to an experienced Indiana personal injury lawyer about your legal options.
Table of Contents
- 1 What Are Some Scenarios Where Subrogation Claims Happen?
- 2 Could My Insurance Company File a Subrogation Claim Against Me?
- 3 How Long Does My Insurer Have to Pursue Subrogation?
- 4 What Should I Do If I Receive a Subrogation Letter?
- 5 How Do I Fight a Subrogation Claim?
- 6 Contact an Indiana Personal Injury Lawyer
What Are Some Scenarios Where Subrogation Claims Happen?
Subrogation claims can happen whenever an insurance company pays its policyholder for losses suffered because of another party’s legal fault. This process can help an accident victim receive compensation sooner, but the insurer will want to recover its money once it determines the liable party. Common scenarios that can lead to subrogation claims include:
- Motor vehicle accidents – An auto accident victim’s insurance provider might cover the cost of medical bills, lost wages, and vehicle repairs under personal injury protection (PIP), medical payments (MedPay), uninsured/underinsured (UM/UIM), or collision coverage. The insurer may then file a subrogation claim against the at-fault driver to be reimbursed for the benefits it paid to its policyholder.
- Personal injury claims – Health insurance is often the first source of coverage for an accident victim’s medical treatment. This victim’s health insurer might then seek to recoup the costs of this treatment by pursuing a subrogation claim against the party responsible for its policyholder’s injury.
- Property damage claims – A homeowners’ or commercial property insurance provider may compensate a property owner for damage another party caused to the property, for example, by crashing a vehicle into a building or starting a fire. The insurance provider may then pursue subrogation claims against whoever caused the property damage.
Insurance companies may pursue subrogation claims against at-fault parties regardless of whether the party has liability insurance coverage. If an at-fault party has insurance, such as in a car accident case, the victim’s insurance company will typically resolve its subrogation claim with the at-fault party’s insurance provider. However, if an at-fault party does not have insurance, the accident victim’s insurer may pursue litigation against that party directly.
Could My Insurance Company File a Subrogation Claim Against Me?
While your insurance company may pursue a subrogation claim against the parties responsible for injuring you, the Anti-Subrogation Rule (ASR) prohibits it from trying to do so against you, the insured. This rule doesn’t apply if you file your own personal injury claim against the liable party. If you win your case and recover compensation from that party, your own insurance company might pursue subrogation against you to be reimbursed for the benefits it already paid you.
Many insurance policies require accident victims to notify the insurer of potential legal claims or to obtain the insurer’s approval before settling or filing a personal injury lawsuit. This preserves the insurance company’s right to pursue subrogation against the at-fault parties.
How Long Does My Insurer Have to Pursue Subrogation?
Your insurer’s ability to pursue a subrogation claim against whoever injured you is governed by Indiana’s statute of limitations on personal injury claims. Once this two-year deadline has passed, your insurance provider will no longer be able to pursue its subrogation claim.
What Should I Do If I Receive a Subrogation Letter?
If you are accused of causing an accident, the victim’s insurance company may send you a letter notifying you of its intention to pursue a subrogation claim against you to recover reimbursement for benefits it paid to its policyholder. The subrogation claim allows the insurance company to pursue the accident victim’s claims against you.
If you receive a subrogation letter, you can protect yourself by gathering and organizing any evidence you obtained from the accident, such as:
- Accident or incident reports
- Witness statements
- Accident scene photos and videos
- Surveillance footage
You should also contact a personal injury attorney as soon as possible to review the facts and evidence in the case. Your attorney can investigate to determine liability for the accident and whether anyone else is actually to blame.
You may have specific rights if your insurance company files a subrogation claim in your name, including:
- The right to notice of the insurance company’s subrogation claim and updates on the progress of the case
- The right to a potential refund of your out-of-pocket deductible
- The right to receive compensation obtained by the insurance company that exceeds the amount of benefits it paid you until your damages are covered
However, your insurer may ask you to waive your right to recover compensation from the at-fault party once it releases its claim against that party. Read all documents from your insurer carefully and consult an attorney regarding your rights.
How Do I Fight a Subrogation Claim?
If an insurance company files a subrogation claim against you, an experienced personal injury attorney can fight for your rights and interests by:
- Investigating the case to determine who is truly to blame
- Recovering evidence to build a compelling defense
- Negotiating with the insurance company to pursue a favorable resolution for you
- Pursuing any claims you may have against other at-fault parties
Contact an Indiana Personal Injury Lawyer
If you were hurt in an accident and obtained compensation from your insurance company, get the legal representation you need to navigate the subrogation process. Contact Truitt Law Offices today for a free, no-obligation consultation with a personal injury attorney to learn more about what to expect from a subrogation claim in Indiana.
