What Is Subrogation in a Personal Injury Claim?

If you have been researching your legal rights online after an accident, you may have come across references to the term “subrogation.” Or, if you have relied on your health insurance or filed a claim with your auto insurance company, your insurance company may have told you that it intends to seek subrogation for your claim.

So, what is subrogation?

Essentially, subrogation involves one insurance company filing a claim against another. If you have been injured in an accident, your health insurance company or auto insurance company (or both) may be required to provide coverage under the terms of your policy. But, if the accident was someone else’s fault, your insurance company (or companies) may also be entitled to recover the costs of your coverage from the at-fault party’s insurer.

How Subrogation Works in Personal Injury Cases 

Here’s how it works: Let’s say you were injured in a car accident, and let’s say you relied on your personal injury protection (PIP) and collision coverage under your auto insurance policy to cover your medical bills and repair costs. Let’s also say your car accident was the other driver’s fault. 

Assuming the other driver has auto insurance (which is required under Arkansas law), your auto insurance company may seek subrogation from the at-fault driver’s insurance company. If your insurance company’s efforts to obtain subrogation are successful, the at-fault driver’s insurance company will reimburse any costs your insurance company has paid. This may result in reimbursement of your deductible as well. 

This is just one example of numerous possible scenarios. As noted above, your health insurance company may be entitled to subrogation as well (if you rely on your health insurance when seeking treatment), and your insurance companies may be entitled to subrogation from various other insurers. Premises-related accidents, product-related accidents, and work site accidents can all potentially involve subrogation claims, and employers’ and other parties’ insurance companies may be liable for subrogation under various circumstances. 

While it is important to know how subrogation works in personal injury cases, the subrogation process typically takes place between the insurance companies behind the scenes. As an accident victim, you are not likely to be involved. However, if you settle your personal injury claim for compensation above and beyond the coverage you received from your insurer, your insurer’s subrogation rights could impact your settlement—so you will want to rely on your personal injury lawyer’s advice to ensure that you are making sound decisions. 

Subrogation vs. Compensation 

This brings up another important point: When you have a personal injury claim, the amount you are entitled to recover is not necessarily limited to the amount of subrogation your insurance company is entitled to receive. In fact, in many cases, accident victims will be entitled to far more. 

If you have a personal injury claim in Arkansas, you are entitled to compensation for all of the financial and non-financial costs you incur as a result of the accident (assuming you were not partially at fault). This means that not only are you entitled to compensation for your medical bills and repair costs, but you may also be entitled to compensation for additional losses such as:

• Loss of income (including wages, salary, independent contractor earnings, tips, commissions, and benefits)
• Loss of future earning capacity
• Pain, suffering, and emotional trauma
• Permanent scarring or disfigurement
• Loss of consortium, companionship, and enjoyment of life

These additional losses can substantially increase the value of your personal injury claim. This is especially true if you have suffered significant or permanent injuries that will continue to impact your life for years or decades to come. With this in mind, before you make any decisions about how to handle your situation, we strongly recommend speaking with an experienced personal injury lawyer who can provide a comprehensive assessment of the losses you are entitled to recover. 

While dealing with the insurance companies and asserting your legal rights can be challenging, these are extremely important if you are facing accident-related losses. An experienced personal injury lawyer can handle all aspects of your claim for you—and you can hire a lawyer to represent you at no out-of-pocket cost.

Talk to a Personal Injury Lawyer in Rogers, AR for FREE

Understanding subrogation is just one piece of the puzzle when pursuing a personal injury claim. Behind the scenes, insurance companies are working to protect their bottom line. But your focus should be on healing—not on deciphering the intricacies of insurance law. At Oliver Law Firm, we help accident victims in Arkansas navigate complex legal issues like subrogation while pursuing the full compensation to which they are legally entitled.

Contact Oliver Law Firm today online or at (479) 202-5200 for a FREE case evaluation. We serve clients across Arkansas and throughout the United States from our office in Rogers, AR.