The Northern California Record reports that Interinsurance Exchange of the Automobile Club filed a lawsuit in the Fresno County Superior Court last month against several defendants. The company is seeking almost $32,000 plus interest from the defendants for money it paid arising from a collision. It appears that one of the defendants may have caused the collision with the company’s customers.
How Can an Insurance Company Demand Its Money Back?
It may seem odd that an insurance company is seeking repayment of the funds it paid for an automobile accident. Isn’t that why we have insurance? Are we required to pay back an insurance company after a car accident?
While the complete details of the above case are unknown, the company is probably claiming subrogation rights. If an insurance company pays a claim that another person or company is responsible for, the paying insurance company can seek reimbursement from the at-fault parties. In this case, that appears to be the person who caused the collision with the company’s customers. Because the other driver was at fault, the insurance company is seeking to recover the amount it paid from the other driver or his insurance company.
In traffic accidents, subrogation claims typically come up in one of two situations. The first is when an insurance company pays its customer for damages caused by another driver. In some cases, an accident victim may file a claim with his insurance company. If the company pays this claim and the other driver is at fault for the collision, the company will seek reimbursement from that driver or his insurance company.
However, the most common reason for a subrogation claim is medical bills paid after a crash by a health insurance company.
Health Insurance and Traffic Accidents
When you are injured in a crash caused by another driver, your medical bills will not be paid by the driver’s insurance company. Furthermore, you will not receive compensation for your medical costs until the case is closed. Settling the accident claim could take more than a year, depending on the severity of your injuries and whether the other driver challenges liability.
Therefore, you may file your medical bills with your health insurance company. If your health insurance provider pays the bills, it has a subrogation claim against any proceeds of your accident case. In other words, your health insurance company has the right to be reimbursed for any bills it paid related to the accident from your settlement process BEFORE you receive any money. Yes, before you receive any money for your injuries, losses, pain, and suffering, your health insurance company has the right to be reimbursed under a subrogation claim.
What If I Don’t Pay a Subrogation Claim?
As your attorneys, we must settle any medical liens or subrogation claims before we can release funds to you. If you are handling your accident claim on your own and you don’t pay subrogation claim, your health insurance company or the medical provider may sue you for the amount of the claim. The lawsuit will demand interest, attorney fees, and costs.
Instead of refusing to pay a subrogation claim, you should negotiate a settlement with your health insurance company. Our Fresno injury lawyers attempt to negotiate a lower payment for subrogation claims, so our clients receive as much money as possible. In cases in which the compensation does not cover all medical bills or leaves very little for the victim after paying the medical bills, health insurance companies usually negotiate a lower payment.
We urge you to call our Fresno injury lawyers for a free legal consultation to learn how we can help you maximize the amount of compensation you can receive for your traffic accident.
Fresno And Central California Valley Attorneys
Contact Torem & Associates by telephone at 1-800-954-4444 or online by using the contact form on our website.