What is the Right of Subrogation?

In its most basic form, subrogation is the right of an insurance company to recover money it pays to an insured for damages caused by a third party. Often injured parties will see demands from the insurance company for repayment placed on their personal injury settlements. It is important to consult with a California personal injury attorney to fully understand how this may affect the outcome of your case. 

Examples of Medical Subrogation
  • Health Insurance Payments
    If you are injured in an accident and your health insurance pays for your medical bills, they may seek reimbursement from the at-fault party or their insurance under subrogation. In California, health insurance companies often have a right to subrogate if they have paid for treatment related to an injury caused by another person’s negligence.
  • Medical Payments (“Med-Pay”)
    If your personal insurance pays for your medical expenses for injuries related to a personal injury claim, the insurance company may seek reimbursement from the at-fault party through subrogation.
Examples of Insurance Subrogation
  • Collision Payments
    When a party carries collision coverage, they are entitled to use their personal insurance to pay for the damage caused to their vehicle. Oftentimes the injured party’s insurance company will seek repayment from the person who caused the collision through a process called subrogation. Typically the injured party’s insurance will also seek their insured’s deductible back as well during this process. 
  • Worker’s Compensation
    When a person suffers personal injuries while working, oftentimes there are two possible paths of recovery–personal injury and worker’s compensation. When a worker’s compensation carrier pays for medical treatment related to a personal injury case, the insurance company may seek reimbursement from the personal injury settlement.