In a motor vehicle collision, there is an at-fault party. Any damages of a collision are the responsibility of the at-fault party. But, often the at-fault driver is not personally responsible for compensation. In most cases, the driver’s insurance company provides compensation. The at-fault party is only responsible for paying if they don’t have automobile insurance. But, in most other cases, the at-fault party’s insurance company provides compensation. This happens through a process called subrogation.
What Is Subrogation?
Throughout the personal injury claim process, you communicate with the at-fault party. But, you also communicate with representatives from their car insurance company. This is because of something called subrogation. Subrogation happens when one person or group gets substituted for another. It commonly happens with debt or an insurance claim. All associated duties and rights get transferred to the insurance company. They take on the claim and deal with the consequences of it.
This is what happens in a personal injury case. A person’s insurance company will take on the claim that you make against that person. The duty to pay you compensation gets transferred from the at-fault driver to their insurance company. It is then the insurance company’s duty to investigate your claim. They will send their own insurance adjuster to do this. Then, the insurance adjuster will review your case. At that point, they will determine a fair amount of compensation to propose.
As a victim of an automobile accident, your insurance company will represent you through subrogation as well. Your own insurance company will collect the compensation from the at-fault party’s insurance company. They do this for you. Your insurance company will do this because initially, they might provide you with money. This money can be used to get your car fixed and for other expenses related to the accident. They will pay this money upfront so that you can recover quickly from the accident. Then, your insurance company will want to get that money back from the at-fault party. For this reason, they will get involved in the personal injury claim.
The initial compensation that you get from your insurance company depends on your personal insurance policy. In the event that you have first party insurance, your own losses will be covered. First party insurance might include:
- Insurance to cover the cost of damage to your vehicle.
- Medical payments resulting from an injury that you sustained in an accident.
- Uninsured or underinsured insurance to cover you. This will help if the at-fault party can’t cover the damages.
It is always a good idea to make sure that you have a good insurance plan. In the event of an accident, you won’t have to worry about who will cover the damages. Accidents can result in significant damage to yourself and to your property. For peace of mind, getting first party insurance coverage is a good idea. You should also consider hiring a lawyer. Then, you can know that your rights are protected. To learn more about subrogation, please contact our office.