How does a subrogation claim work?

Subrogation law firms, like Keis George LLP, help insurance companies recover their losses.  It is usually written into the policy that they will sue the third party should the third party be found liable.  It is a way to keep insurance costs down for those that are careful and responsible. Sometimes you can ask to have that part of the policy taken out, this will increase your rates but it is possible.   Construction and leasing are two areas that commonly request this provision to be taken out.  

If you are an insurance policyholder, most likely you have this clause in your policy. This is to protect you and helps with an easier insurance claim.  The insurance companies are more likely going to payout if they have someone to sue themselves. Subrogation is the legal right for insurance companies to act on your behalf to get their funds back that was lost due to no fault of yours.  This is mostly found in automobile policies but can be in homeowners, renters, and other policies as well. If it is found that another part is responsible for the damages that you have occurred medically or otherwise, you need to file a claim with your insurance company.

Insurance companies protect you

Insurance companies are there to protect you.  You have car insurance so that in the event you hit a large animal or another car cuts you off you are covered.  Most of the time car insurance covers both your medical expenses and your loss of property. This is usually a simple thing.  You will submit your expenses to your insurer and they will take care of it. This should be a fairly smooth process. But it should be done quickly after the accident so that you can be reimbursed quickly and move on with life.  

Accidents happen but those who are at fault should pay.  If you have a claim and it is not your fault the subrogation clause allows your insurance company to get back what they have to payout.  If they win, your insurance coverage will most likely not be affected by this accident. As it was not your fault and it cost them nothing in the end.  

Subrogation clause in insurance policies

The subrogation clause can cover a person’s physical property as well as medical expenses and so much more.  But, it has nothing to do with the person that carries the insurance. The person that carries the insurance just has to submit the claim to their insurance and provide the proper paperwork needed.  If you are not sure what paperwork is needed, ask! Your insurance company will help you and tell you what they need to cover your claim. It is merely that simple. The subrogation happens behind the scenes and really has nothing to do with the policyholder at all.  

Because of this, most policyholders don’t know this clause even exists.  It is there to protect the insurance companies and not an individual. If you want to know if your insurance policy has this subrogation clause in it, be sure to read the policy.  Or, ask your insurance company where you can find this information in your policy.