For those injured in a car accident, the term “subrogation” can seem foreign. Given that it deals with complex insurance benefits and contracts and that such negotiations often occur between insurers and attorneys behind the scenes, most never have much cause to consider it. But if you’re injured in a Fort Lauderdale car accident, health insurer or auto insurer subrogation rights can have a substantial impact on the amount you actually collect, so it’s important to have at least a basic concept of what it entails.
What is Subrogation?
The term “to subrogate” means to substitute one party for another with regard to a legal claim or debt. The purpose of subrogation is to enforce final payment of compensation from the driver who was at-fault – and to prevent double recovery.
So after a car accident, let’s say your underinsured auto carrier covers a percentage of your lost wages. If you win a claim against the other driver – and part of the damage award includes lost wages – your UIM insurer would have a subrogation right to reclaim all or some of its money from your damage awards. Continue reading