After you report a car accident to your insurance company, they will be busy trying to calculate how much they need to pay out. Depending on the circumstances of your accident, they may choose to pay you and then file a subrogation claim with the party who caused the accident.
While there are some benefits to this move, it’s wise to consider all your options. Our lawyers at Pastrana & García Injury Law can help you understand your rights under subrogation after a car accident and can guide you through your legal life.
Understanding Auto Insurance Subrogation in Texas
When you agree to subrogation, that means you give your insurance company permission to take over your accident; they will engage the third party involved in your injuries and will file a claim to recover the money they paid you. There are pros and cons to auto insurance subrogation.
Pros:
- You will usually receive a quicker payout from your insurance company.
- You don’t have to worry about negotiating with the other party’s insurance company.
- It’s possible that you could get money back from your deductible if the subrogation claim is successful, and it can help your policy premiums stay low.
- Often, you do not have to be involved in the claim process.
Cons:
- You must pay your full deductible, which could be very pricey.
- Filing a personal injury claim against the third party yourself could net you more compensation, depending on the circumstances.
- Subrogation settlements may not take into account future care for injury needs.
- There’s no guarantee that a subrogation claim will net anything, which means that you would not get back deductible unless you chose to pursue a claim against the other party.
With the scale pretty evenly weighted between pros and cons, it can be difficult to determine your next step. If you’re unsure about how to proceed, consult a trusted attorney.
How Subrogation Works in Texas Car Accidents
Auto subrogation claims work in the following way:
- You inform your insurance company of the accident and provide them with details
- You agree to a settlement
- Your insurance company pays you
- Your insurance company then files a claim against the third party involved in the accident to cover their losses
- Your involvement usually ends unless they need you to provide evidence: your insurance company and the third party must now agree to a settlement
While this seems like a fairly straightforward process, there are many angles to consider when thinking about subrogation. For example, not every direct settlement with an insurance company means that they will file a subrogation claim, which means that you’re left paying the deductible. It’s a good idea to talk with a knowledgeable attorney before agreeing to subrogation.
It’s important to note that you cannot seek claims against a third party that your insurance company files a subrogation claim against unless:
- If your insurance company does not win, you may engage the third party for the deductible.
- If your insurance company only pays you part of your claim, you may only engage the third party for the remaining amount.
Getting the Most from Subrogation
Because your insurance company will be paying you a one-time sum with the possibility of a deductible refund, you need to make sure that you’re getting an adequate amount of compensation that will help you recover. This means that you need to provide clear documentation of the accident, including a record of having visited a doctor immediately after an accident, so they can examine your injuries and provide you with proper medical treatment. Injuries that go untreated may not be covered.
When Does Subrogation Apply?
Even if an insurance company pays you in full for the accident, they do not have to file a subrogation claim against the other party. It’s up to the individual insurance company whether or not to go after a third party for compensation. However, they may choose this path if you are not at fault for the accident or are less at fault. Additionally, your deductible must be paid.
The Flip Side of an Insurance Subrogation
If an insurance company contacts you about a subrogation claim to recuperate losses, it’s best practice to find a trusted lawyer who can help you negotiate a settlement. You won’t be able to make an insurance subrogation claim go away by refusing it; they have the right to try to regain what they paid to their policyholder. Seek legal counsel for your next steps.
Impact of Subrogation on Your Insurance Rates
After an accident, insurance rates are often bound to increase, regardless of whether the accident was your fault or not. With subrogation, your insurance rates may not increase because the insurance company was able to recover its losses.
It’s important to note that there are no guarantees when an insurance company files a subrogation claim. Consider all your options, including a personal injury claim, to recover the money you’re owed. An experienced legal team can help you make a solid decision for your financial future.
Working with a Subrogation Attorney in Texas
Our lawyers at Pastrana & García Injury Law are well-versed in insurance subrogation. It’s important to understand the process you’re embarking on and get all your questions answered before you agree to anything. Speak to our legal team to get the guidance you need.
Contact Pastrana & García Injury Law Today
Wading into unfamiliar territory with insurance companies can feel like a gamble, but you’re not alone. Our lawyers at Pastrana & García Injury Law are here to help you navigate what happens after your car accident. We can help you make an informed decision for your situation.
Contact our legal team with questions about subrogation and whether it’s a good choice for you. Call our offices today at 512-474-8847 or reach out to us online so we can work with you to regain your compensation for your car accident.
