Subrogation Claim? Can Your Insurance Company Place A Lien On Your Settlement?

If you're in a no-fault car accident and require medical care, you may expect your insurance company to go after the driver who hit you. But if the insurance provider can't obtain compensation for the medical expenses you incurred during your treatment from that driver, it can place a lien on your settlement instead. Your personal injury attorney refers to this as a subrogation claim. Here's what you need to know about a subrogation claim, and what you can do to protect your settlement award from it.

What's a Subrogation Claim?

The first thing your insurance company does after you get into an auto accident is find out who's at fault for it. Once it's clear that the other driver caused the accident, the insurance company pays for the costs of your medical care, as well as the repair or replacement of your vehicle. Afterward, your insurance company pursues the at-fault driver's auto insurance company for compensation of these expenses by making a subrogation claim. However, if the at-fault driver doesn't have sufficient coverage to pay on your medical bills and car repairs or replacement, your insurance provider can place a claim on your settlement for the rest of what it's owed.

Can Your Attorney Protect Your Settlement?

A personal injury attorney can't stop a subrogation claim once it's filed by your auto insurance provider. He or she may pursue your health insurance for assistance in paying for your medical expenses. Keep in mind that this may take some time because every state has different rules for obtaining compensation for medical expenses. However, your attorney needs to reduce the amount of the subrogation claim against your settlement, so it's critical that he or she try every possible way he or she can to do so.

When Does the Insurance Company Take the Subrogation Funds?

Your auto insurance company may take the amount owed to it out of your settlement funds before disbursing a check to you or your attorney. If it doesn't do so at that time, you'll need to reimburse the company prior to spending or using the funds for yourself. If you don't do so, the auto insurance provider can pursue you in court for the funds owed to it. It may affect your credit standing if the insurance company places your account in collections. In addition, you may increase your future insurance premiums because other insurance providers may see you as a problem.

If you need help with your personal injury case, contact your attorney today. Your attorney like one from Mauro Savo Camerino Grant & Schalk can walk you through the entire process, as well as keep you informed about any possible subrogation claims made against your settlement.