What is Subrogation?
Subrogation is a term that may be unfamiliar to anyone who is not in the insurance industry. It refers to a legal right for one party (your insurance company) to make a payment to another party (you) for a third party (the other driver’s insurance company). The law then allows the first party to later collect the money they paid out from the party that actually owes the debt. If you have been involved in any type of accident, it is always a good idea to consult with a reputable Chicago accident attorney before accepting any type of settlement or signing anything.
How It Can Affect You
Although it seems like an industry process that you really don’t need to worry about, it is definitely in your best interest to know how subrogation can affect you. Subrogation is usually the last portion of the claims process, and because it is something that goes on between insurance companies, claimants often know little to nothing about it. Nevertheless, if your insurance company chooses to pursue subrogation, they are required by law to notify you.
There are two main reasons for you to take an interest in the subrogation process. The first is that if your insurance company attempts to recover money from the other driver’s insurance company, they must try to recover the cost of your deductible. If they are successful, you are entitled to that money.
Secondly, your insurance policy usually contains language that requires you to cooperate with any attempt at subrogation. Among other things, you are not allowed to sign any agreements or waivers that release the other driver from responsibility from the accident as part of any settlement.
Contact a Reputable Chicago Accident Attorney
Subrogation is not overly complicated, but it can affect your claim due to some of the rules imposed by the insurance companies.
Never rely on insurance company representatives when it comes to making sure you receive the compensation you are entitled to. These massive companies have teams of legal experts working day and night to help find ways of reducing the amount of money they pay out. You need to make sure you have quality legal representation in your corner.
Reach out to our compassionate and knowledgeable legal team and let us help you achieve the settlement you deserve. Contact Shea Law Group at (877)-365-0040 or book a no-obligation consultation online to discuss your case today.