Auto Insurance Subrogation | NY Zone Exchange

What exactly is auto insurance subrogation? As an auto insurance policyholder, if you are ever in an accident where you have received extensive injuries and car damage because of an uninsured driver, (with the proper coverage) you can contact your auto insurance company and they will pay for your expenses related to the accident. But what happens if some time later your insurance company discovers that the motorist at fault has insurance to cover your personal injuries and damage to your vehicle? Your insurance company may decide to seek reimbursement from the at fault motorist’s auto insurance company. This process is known as subrogation.

How Does Subrogation Work?

Subrogation is a process that occurs when an insurance company goes after reimbursement for the person or company legally responsible for an accident. Subrogation takes place after the innocent driver’s insurance company has already paid for their policyholder’s personal injuries and/or vehicle damage. The rule in this situation is that after paying your claim, your auto insurance company has the right to represent you and sue the negligent party for you. Not all insurers will bother to subrogate more insurance bills. This could cause a conflict of interest and be against the driver’s insurance coverage, or your medical insurance already covering your treatment.

Many people involved in auto accidents decide to use their own health insurance to cover their medical bills – even if they have medical payments coverage through their auto insurance provider. You need to review your policy to see whether one form of coverage is considered primary over the other. You should also find out how your policy handles double coverage. Some companies will prefer to pay you directly for your bills, even if they have already been paid by your health insurance company. That money is yours to keep. Your auto insurance policy will only take care of bills resulting from a reasonable, necessary treatment that stays within the cost limits of your policy.

Subrogation can be used when your auto insurance company settles your collision claim because of the other motorist. When this happens, your insurance company will ask you to sign a subrogation release form stating your right to recovery against the person who caused your injury and damage. Subrogation usually takes place after the original claim is settled.

What if You Are At Fault in an Accident?