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What is Subrogation and How Will It Affect My Recovery of Damages?

Subrogation is essentially the contractual right of an insurance company to recoup any monies it paid on your behalf following an accident if the accident was caused by the fault of another person. Stated differently, if you required medical treatment following your accident and you had health insurance, your health insurance company paid the hospital and doctor bills. Your insurance policy will contain a subrogation clause which allows the health insurance carrier to recoup the medical bills it paid on your behalf if you receive a settlement or verdict as a result of the accident The right of subrogation exists regardless of whether you have private insurance such as Blue Cross Blue Shield or Tenncare or Medicare.

Here is an example: following a trucking accident, you incur $55,000 worth of medical bills. All of the bills were paid by your insurance company. Assume we secure a settlement or verdict in the amount of $500,000, you would have to pay the insurance company $55,000 from your recovery because of the insurance company's subrogation right.

At the Law Offices of John Day, our award-winning trial lawyers are experienced in negotiating with insurance companies to reduce the amount of money you have to repay to the insurance company. Successful negotiations with the insurance company mean more money in your pocket.

If you would like to discuss your injury case with one of our experienced lawyers, please contact us online or call us at 615-742-4880 or toll-free at 866.812.8787 for a free, no-obligation consultation. In injury and wrongful death cases, we work on a contingency fee basis which means we only get paid if we recover money for you.

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