What Is Subrogation?
Many people find themselves using their car insurance to cover accident claims even when they have been found not at fault. When it comes to collision insurance, your claim is not over just because all of the repairs have been completed and parties are paid off. This is when the subrogation process begins. If you have used your car insurance policy for a claim that was not your fault, you and your insurance company have the right to receive the money that was paid out.
When you have an accident, you need resolution as quickly as possible. You may not be able to drive your car, which affects your job and ultimately your way of life. Unfortunately, when it is not your fault, you must wait for a claim to go through before life can get back to normal. But what if the at-fault person's insurance company is taking too long to respond? You are then the one that pays your out-of-pocket deductible, in accordance with your car insurance policy, to get your car and life back to normal. In addition, your car insurance company also paid thousands of dollars to cover the damages for you. More than anything, this sort of payment is made to cover your damages and any injuries as quickly as possible. At this time, your insurance company will pursue the party that was actually at fault after paying off a collision insurance claim – the process of subrogation. When insurance companies do this on your behalf, they are also seeking to get back all of the expenses you paid out of pocket. As you were not at fault, the cost should not be left to you.
Once your car insurance claim initially goes through (after you and your insurance company have covered your costs), your insurance claims adjuster will send your file on to the subrogation department. Once the subrogation department receives your claim, they will continue to contact the insurance company of the person who was at fault. Sometimes this is a very quick and painless process. It may mean simply calling the other party's insurance company and figuring out when payment will be made. In other cases, it may take several attempts on the part of your car insurance company to resolve the claim.
In the case where an insurance company is taking a long time to respond to a subrogation claim, you and your insurance company may decide to take the claim to court by filing a lawsuit. Though it is unfortunate when the process has to take this route, as the victim of the accident, you deserve payment and resolution.