The costs of getting medical care after a car accident can be considerable. For many people, insurance helps to defray the costs at least a bit. The balance due after any insurance payments is going to be due from the victim. Seeking compensation for their injuries is a way that these victims can try to recover their money, but this means that they need to carefully plan the entire case.
When you decide to seek compensation for your injuries, you need to think about the entire cost of the injury. You can’t only look at what you spent for medical care. You also need to look at what you might spend in the future. You also need think about the money that your insurance company spent on your care.
In many motor vehicle accident cases, the concept of subrogation comes into the picture. This is something that allows the insurance company to seek repayment from you for the money it spent on your care. Subrogation applies to cases that involve successful claims for compensation.
In theory, subrogation can help to keep insurance costs down. Since government entities can also call this into play in a case when programs like Medicaid or Medicare covers part of the bill, this can also help to keep the cost of these programs down.
For the victim, this means carefully weighing the total that needs to be repaid to the insurance company with the amount of compensation they are seeking. In some cases, the insurer might go directly to the defendant, or liable party, in the compensation claim.
Source: FindLaw, “Subrogation,” accessed Jan. 19, 2018