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 SacramentoFolsomRoseville, El Dorado Hills and other communities in the greater Sacramento area.

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The Tiemanns were referred to me by a friend and I am exceptionally happy with the service I received. I had never been in an accident before. I had no idea what to do. Jelena verbally explained how everything would work to me, and she and Peter handled everything. I didn't have to lift a finger once. They went above and beyond for me and I am extremely grateful. I pray I won't ever need this type of assistance again, but I will definitely be referring them to friends and family.

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I highly recommend The Tiemann Law Firm! I had never before been in a situation where I sustained injury and had to seek legal representation. I was nervous, traumatized, and had no idea what to expect. Jelena, Peter, and their staff walked me through each step of the process. They explained everything in detail. They patiently answered all my questions, responded quickly to every email, text message, phone call, etc. I felt totally prepared for each new phase of the legal process. Furthermore, they were fearless in their defense of me. In certain situations, when I felt attacked or scared my attorney protected me like I was family. Their diligence, honesty, integrity, and compassion provided a true sense of healing and closure for my family and I. The Tiemann Law Firm accomplished more for me than I ever thought possible and I am forever grateful.

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Here's the thing... Nobody really thinks much about lawyers until they need one.  Well, we needed one!  The Tieman Law Firm came through for us in a big way. They were professional, courteous, thorough, and had excellent staff as well.  Highly recommended...

Jereme S. Testimonial

No one wants to have to hire a lawyer, but if you do. I prefer Tiemann Law. They helped a family member who was injured on the job, and the company did not want to compensate him even though, the injury occurred on the job on company time. Jelena was always professional in explaining the lengthy process of fighting a large corporation. 2 years later he finally is receiving the deserved compensation.

Hanna Padilla Testimonial

From the very start of my case the Tiemann Law Firm was wonderful. Perter came all the way to my home to sit down and talk to me about my options. He made me and my partner feel very comfortable and promised us he would take the very best care of my case. Peter kept me informed every step of the way and was always on top of things. everything was done in a timely manor and I always felt like I was the only case he was working on because he was so fast. In the end Peter got me back way more money than I ever expected. I would recommend this law firm to everyone. I am very happy with the outcome of my case thanks to the Tiemann Law Firm! Thank you!