I was in an accident where my neck and back were injured. My insurance company in California covered both the damage to my car and my personal injuries. My insurance company later realized that the other party was at fault and sought out reimbursement from that insurance company. It was explained to me that this is called subjugation, how does it work?

Alicia

Bellflower, CA

The process of subjugation refers to an insurance company seeking reimbursement from the person or entity legally responsible for an accident after the insurer has paid out money on behalf of its insured. Your insurer is “subjugated” to the rights of your policy after paying the claim and can “step into your shoes” to go after or sue the negligent party on your behalf. But not all insurers surrogate for medical bills because it could be against the other driver’s insurance. Also, it could also be against your own separate health insurance policy or any other medical insurance that would cover your treatment.

Subrogation may also be used when your insurer settles your collision claim for damage to your vehicle due to another driver’s negligence. Normally, your insurer will have you sign a subrogation release that assigns your right of recovery against the person responsible for your loss to them. Insurers may not stop settling your claim until they get paid from the person at fault. Subrogation usually happens after the original claim is settled and some insurers will include the deductible when they subrogate. You will then get your deductible back when the other driver or their insurance company pays the subrogation claim.

It is best to cooperate with your Bellflower California agent or insurance company when a subrogation claim has been made. The two insurance companies involved would have to go back in detail to the accident to verify what exactly happened and the expenses that have been incurred so far. This may take time unfortunately so you need to be patient and keep in close contact with your claims person.