Subrogation is one of those legal terms that gets people’s heads spinning. Here, we try to simplify the term as best as possible.
In the context of a lawsuit or claim, subrogation is essentially the means through which an insurance company, or any other party, steps into the shoes of another party in order to assume that person’s rights and remedies.
In the context of a car accident case, it refers to your insurance company’s right to seek recovery for expenses it paid due to the negligence of the driver who hit you.
If your health insurer or automobile insurer, often under your Personal Injury Protection (PIP) coverage, pays medical or other expenses due to the at-fault driver’s negligence, the insurance company has a right under its policy with you to recover those expenses. Realistically, your own insurance company often comes to you or your personal injury attorney and asks for repayment directly from the settlement amount. Whenever you are contemplating settling a car accident or personal injury case in Washington, be aware that your own insurance company is entitled to recovery for expenses, subject to a Mahler reduction.
Have questions regarding your rights in an auto accident? Contact us.