Most insurance companies protect their clients both legally and financially. The insurance company covers the liabilities of its clients even if they are at fault. After compensating the affected victim, the insurance providers use subrogation to claim back some of the money they spent to compensate the injured person or claimant. It is a complicated process, but with a competent subrogation lawyer on their side, they are able to recover some money from at-fault parties, which helps them stay afloat.
Subrogation can also work for the benefit claimants in different ways. A claimant can hire a lawyer to help them recover the vehicle’s damage from the at-fault party. The lawyer can also help them collect the deductible paid to the insurance company.
Keep reading to learn more about how subrogation works and things to know before hiring a subrogation attorney.
What Is Subrogation?
Subrogation has a simple definition, but it is a complicated process. Subrogation is defined as the legal right of an individual or company to step into the role of another individual or entity to seek monetary or legal compensation from a third party. It is important to note that the entity that steps into the customer’s role covers all the original party’s liabilities. But they later claim monetary compensation from the at-fault party.
It is difficult to understand the subrogation concept, but with an example, you can easily understand its meaning and how it works. For instance, in the case of an accident at work where the employer is held liable for the worker’s compensation benefits but the accident was caused by a third party, the employee has a right of subrogation to recover the benefits from the at-fault third party.
Another example involves auto insurance claims. If one is injured in an accident and their car is damaged, the insurance carrier will ask the claimant to pay a deductible so that they can cover the damages to the car and other losses. Subrogation protects the victims and can help them recover the deductibles from the insurance providers. But it is not guaranteed that they will get the deductible back. Subrogation also works with health insurance, homeowner’s insurance, and other types of insurance policies.
Why Do You Need a Subrogation Lawyer?
In most cases, the subrogation process takes place behind the scenes, and many people don’t know much about it. On paper, subrogation seems like a strategy to help insurance carriers collect reimbursement and recover their losses from at-fault parties. But subrogation can protect both small consumers and those large insurance companies.
The subrogation process is complicated, and strict laws govern it. If you don’t know how to navigate the process and fight for your rights, you should hire a subrogation lawyer to help you with the case. The attorney understands the subrogation process and knows what to do to recover some money from at-fault companies, persons, or entities. The lawyer will move from one office to the other and even meet up with the at-fault party to try and recover money for your insurance company.
If you are involved in an accident that was not your fault, the lawyer will take extra steps to see that you recover vehicle damage from the at-fault party. They can even help you recover deductibles paid to the insurance provider. The entire process is complicated, and you will require the expertise of a subrogation attorney to get the desired outcome. The lawyer will handle the case while you focus on other important things in your life.
Things to Know Before Hiring a Subrogation Attorney
There are many things you need to know before hiring a subrogation attorney. Here are the main things your need to know;
Confirm Whether You Were At-Fault or Not
You should confirm before hiring a subrogation lawyer whether you were at fault or not during the accident. If you were at fault, the insurance company has a right to subrogation to recover some damages from you. You don’t have to spend money hiring a lawyer, and you will likely not win the case. But if you know that you were at fault, you can hire a lawyer to defend you against the subrogation attorneys hired by the insurance provider.
Recovering Reimbursements and Deductibles are not Guaranteed
If you were involved in an auto accident and paid the deductible to get your compensation, you need to do your math before hiring a subrogation lawyer. The deductible will be $500 or $1,000 (depending on your policy), and it is not a guarantee the insurance company will pay it back. You will likely not get your deductible back if they don’t get reimbursement from the at-fault party. So know that getting your deductible from the insurance provider or recovering some money from the at-fault party is not guaranteed, even if you hire a competent lawyer. It is a legal battle, and any party can get a desirable outcome.
Hiring a Lawyer Comes at a Cost
Be prepared to spend some money before you choose a lawyer to help you with the subrogation process. Some lawyers will ask for an upfront fee, while others are paid on a contingency basis. So if you are certain that you will recover the money, hire a lawyer and ask for a reasonable fee so that you don’t spend a huge chunk of your compensation or savings on legal fees.
The Process Takes Time
Don’t expect a subrogation lawyer to get results in just a few days. Insurance claim cases take time, and the subrogation process can take much longer, even when one has a competent lawyer on their side. The process can take weeks, months, or even years. So you should manage your expectations and be patient.
An Experienced Attorney Increases Your Chances of Recovering Some Money
Whether you are an insurance provider or an auto accident victim, a competent subrogation attorney can protect you and help you recover some losses. Such a lawyer has handled many subrogation cases and knows how to approach them to get the desired outcomes. How do you know an experienced subrogation attorney? You need to read their customer reviews. If they have many positive reviews from insurance providers, individuals, and entities, you should hire them and expect the best outcome.