As a general rule, any insurance company (health, auto, workers compensation) has recovery rights, sometimes referred to as subrogation rights from any recovery in an auto accident case. A subrogation right is the right of the insurance company to be reimbursed money it paid on your behalf if you are awarded damages against a negligent driver. (http://www.dmv.org/insurance/subrogation.php). In the case of most health insurers, the subrogation rights are a contractual provision that an insured must comply with pursuant to the terms of their policy.
However, an insurance company must tell you ahead of time if it is planning on exercising its right to subrogation. By exercising this right, the insurance company must reimburse all or part of your deductible. Sometimes, an attorney is able to negotiate for an insurance company to waive its subrogation rights.
Most car accident attorneys will advise an injured person of these recovery rights and will also negotiate any insurance liens before disbursing any proceeds from a settlement. Failure to address subrogation interests may result in an insurance company's termination of a policy or even a lawsuit to recover payments made.
Why You Need to Be Aware of Insurance Subrogation if Your Were Injured in a Car Accident
The lengthy part of most insurance policies likely has subrogation language in there. As an insured, part of the contract that you have with your insurance company is that you will comply with the language set forth in the policy. Consequently, you must address subrogation interests or risk possible jeopardizing your coverage or your financial wellbeing. Failure to protect a companies subrogation interests in an auto accident case may open the door for the company to directly pursue you for their expenses.
Hypothetically, if you were injured in a car accident and took an ambulance to the emergency room for treatment and your health insurance company paid those bills, they would be entitled to get those payment reimbursed from you if recovered from a third party. If you failed to reimburse them, they could ask you directly to repay them for these costs.
Why Hiring a Lawyer For a Car Accident Case Frees You From the Subrogation Headache
At Rosenfeld Injury Lawyers LLC almost all of our car accident cases involve insurance subrogation or liens asserted from medical providers. We know the law when it comes to the rights of these providers and always work with you interests in mind to ensure that these companies get what they are entitled to—but not a penny more.
Our attorneys regularly work to negotiate these bills to get them reduced so you can maximize your portion of a recovery from an auto accident case. In every Illinois car accident case we handle, you will receive a ‘settlement statement', which clearly sets forth all medical and insurance company liens and obligations. You will see the amount the original charge and the amount your attorney was able to negotiate. We believe that you deserve to know where the proceeds from your settlement go.
If you were injured in an Illinois car accident and have questions about the subrogation rights of insurance companies or medical providers, contact our office for a free review of your case.
For additional information see the following pages:
- Do I need to give a statement to an insurance company following an auto accident where I was injured?
- How long do you have to file a lawsuit for personal injuries related to a car accident arising in Chicago, IL?
- How long does it take to settle an Illinois car accident case involving injuries?
- How much does it cost to hire a lawyer to represent me in a personal injury case arising out of an Illinois auto accident?
- I don't understand why my car insurance needs to pay for injuries I sustained when another person caused the accident
- I was told the driver of the vehicle I was involved in an accident with had full coverage. What does that mean?
- I was unable to work for several months following my car accident; can I recover my lost wages?
- If the car was owned by a company, is the company responsible for paying my personal injuries?
- Is car insurance mandatory for drivers in Illinois?
- Can I pursue a claim on behalf of my son against my husband?
- My surgeon wants to put a lien on my car accident case. What is he doing?
- The driver I was involved in an accident with pleaded guilty in traffic court. What does that mean?
- The driver of the vehicle who caused my Chicago car accident was arrested for DUI. Can a claim be pursued for punitive damages?
- What type of monetary damages does the law provide for in automobile accident cases in IL?
- Why is the car insurance company denying my claim for property damage and medical expenses?