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What is “Right of Subrogation” in a Florida Car Accident Settlement?

A quick and fair settlement is often at the forefront of an injured party’s mind, and for good reason. Reaching a resolution in accident cases can take years in some circumstances and that can be too long to wait when there are issues like lost wages, medical bills, and property damage to deal with. 

If you’ve been in an accident and are thinking about your options for compensation or considering how you’ll move forward, the right of subrogation could affect your plans for reimbursement and recompense. 

What is the right of subrogation?

Subrogation occurs when a third party assumes the right to collect someone else’s damages or payments. In the context of a motor vehicle accident, the right of subrogation allows an insurance company to pursue repayment of the money they paid on your behalf. 

This is a complex legal concept and if you are faced with a situation in which subrogation is or may become an issue, reach out to our knowledgeable team of injury law experts. We understand the nuances of Florida’s laws, as well as the many ways that an insurance company’s right to subrogation may present in accident cases.

What role does each party’s car insurance play?

As a general rule, the at-fault party’s insurance will be responsible for paying for accident-related expenses. There are exceptions for certain types of insurance, like personal injury protection, which covers the policyholder, certain other designated individuals, and passengers.

In Florida, you also have the option of adding uninsured or underinsured motorist (UM) coverage to your car insurance policy. This is relevant when discussing subrogation because there may be instances where an at-fault driver does not have sufficient insurance coverage to fully address the damages that they caused. Your UM insurance could step in to pay for the difference, and then their right of subrogation can be pursued with the responsible driver or their insurance company. 

How might subrogation affect your financial compensation?

Subrogation prevents injured parties from receiving duplicate payments. One example is if your health insurance company covered the costs of medical care you received due to your car accident, the health insurance company could be entitled to a portion of any settlement you receive. 

You would then have to consider how the monetary damages you receive might be divvied up among other parties, rather than being able to feel at ease knowing you have the full amount to help you move forward. This can be difficult to deal with, both financially and emotionally, because expenses can quickly add up following a collision.

In what other ways might subrogation affect your case?

There are extra steps you would need to take in some circumstances, like notifying insurance companies of your settlement. There are time frames and statutory requirements for this process, so the expertise of a Miami injury lawyer would be beneficial. Please reach out to schedule a consultation if you have questions about how the right of subrogation will affect your case.

How is subrogation accounted for in a settlement?

Regardless of the potential for subrogation, working with an experienced attorney is a good idea when you have a car accident injury claim. However, with the added complication of an insurance company’s right of subrogation considered, it is crucial that you have a qualified Miami injury lawyer on your side. 

We can negotiate with your insurance company on your behalf if they are acting on their right of subrogation and attempting to recover costs from your settlement. Just because they’ve set a price, that doesn’t mean they cannot be convinced to accept a lower amount. There is often some room for negotiation.

Our firm can also help you navigate the injury claim process by negotiating your settlement offer and notifying the required parties of your intent to accept a settlement, which is required by Florida law. You may also find it beneficial to have assistance with drafting a closing statement and release of claims. These documents specify how your financial compensation will be distributed, providing a clearer picture of your end, or net, recovery. 

Knowing what to expect can help you start your healing journey by providing peace of mind and actionable steps. It is possible to get the compensation you need without added stress and hassle. Contact us today to discuss how we can help you with your subrogation or car accident injury claim. 

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