INSURANCE COMPANY SUES FOR REIMBURSEMENT IN CAR ACCIDENT CASE
Posted on Monday, May 29th, 2017 at 2:02 am
The Northern California Record reported that Allstate Northbrook Indemnity Co. sued several defendants seeking reimbursement of more than $37,000 under its subrogation rights. From the complaint filed in the San Francisco County Superior Court, it appears that Allstate paid a car accident claim for its insured of $37,002.33. Allstate is alleging that one of the defendants caused the collision by rear-ending its insured’s vehicle. Therefore, the defendant should be responsible for the damages caused by the accident. Allstate seeks reimbursement of everything it paid plus interest and costs of the lawsuit.
How Can Allstate Sue For What It Paid?
In a normal case, the driver of the car that was rear-ended would sue the other driver for damages because the other driver caused the wreck. For some reason, the accident victim’s insurance company paid the claim. Therefore, Allstate now has a right to pursue the at-fault driver for reimbursement under its subrogation rights.
Subrogation rights allow an insurance provider to be reimbursed for any payments it makes under a policy if another person or party other than its insured was responsible for the accident. In most cases, subrogation rights apply when a health insurance company pays medical bills in a car accident case.
For example, a distracted driver rear-ends your vehicle. You file a claim for the medical bills with your health insurance company. Your health insurance provider pays the medical bills from the automobile accident. After you complete treatment and you file your car accident claim against the other driver, your health insurance provider files a notice of subrogation rights. The health insurance provider has the right to be reimbursed for all payments it made related to the car accident from any proceeds of your settlement BEFORE you receive any funds.
In other words, if you receive $100,000 for the car accident by your health insurance provider paid $70,000 in medical bills, the most you receive for your claim is $30,000 because the health insurance company receives its money first.
Can I Get Out of Paying Back My Insurance Company?
Subrogation claims are legal liens against settlement proceeds. Your contract with the insurance company requires you to pay the company back from the settlement proceeds. If you refuse, the company can sue you for the amount it paid plus interest and costs.
However, you may try to negotiate with your insurance provider for a lower amount to settle its subrogation claim. Our attorneys often negotiate these claims to help our clients receive the maximum compensation available for their claim. In some cases, the provider will accept a lower amount. Especially in cases where the damages are substantial, and the settlement claim does not cover all damages. Our attorneys are skilled in presenting a convincing case to the insurance provider for accepting a lower amount.
Call a Sacramento Car Accident Attorney for a Free Appointment
Our attorneys offer free consultations and no-obligation case evaluations for accident victims and their families. We urge you to take advantage of the free appointment to learn about your rights regarding a car accident claim.
Call The Tiemann Law Firm at (916) 999-9000 to schedule your free consultation. Our law firm serves clients in Sacramento, Folsom, Roseville, El Dorado Hills and other communities in the greater Sacramento area.