If you’ve been injured in an accident caused by another party’s negligence, it can take some time to get compensation for your injuries and other losses. Whether you go through an insurance claim or a personal injury lawsuit, it can take months or sometimes even years before you recover any money. So, how do you cover expenses in the meantime?
Your own insurance may cover some or all of your immediate costs, but what happens if they want that money back after you’ve finished your insurance claim or lawsuit? That’s where the subrogation process comes into play, and it can make a big difference in terms of how much you eventually receive in compensation after an accident.
The Las Vegas personal injury lawyers at THE702FIRM Injury Attorneys can answer any questions or concerns you have about subrogation after an accident.
Get a free initial consultation today by calling our office or visiting our contact page.
What Is Subrogation?
Subrogation is a legal process that allows an insurance company to step into the shoes of an insured person and recover money paid out on a claim from the party responsible for the damage or injury. It typically arises after a car accident or other incident where the insurance company pays for medical bills, vehicle repairs, or other expenses on behalf of its policyholder.
For example, if you are in a car accident in Las Vegas, NV, and your health insurance covers your medical bills, the health insurance company may seek reimbursement from the at-fault party’s insurance company. This way, the at-fault party, or their insurer, ultimately bears the financial responsibility, not your own insurance carrier.
Subrogation claims can apply to various types of insurance policies, including:
- Health insurance
- Auto insurance
- Workers’ compensation
- Government programs
After a personal injury, whether it involves a car accident or an injured worker, subrogation ensures that the insurance company is compensated for what it has paid on your behalf. This process helps reduce overall insurance premiums by ensuring that the right party bears the costs.
The subrogation process involves sending a claim, called a subrogation lien, to the at-fault party’s insurance carrier. If the injured party files a personal injury lawsuit, the insurance company’s subrogation interest must be addressed during settlement negotiations. Nevada subrogation laws are complicated, so it’s common for injury victims to work with a personal injury attorney to protect their rights and ensure they receive full compensation.
Sometimes, subrogation can affect how much money an accident victim receives. If the insurance company successfully recovers its money, it prevents what’s known as “double recovery,” where the injured party would be paid twice for the same expenses. However, the laws around this vary, so understanding Nevada’s subrogation law is key in handling these situations.
What Happens When Fault Isn’t Clearly Defined?
Identifying who is responsible for the accident can be challenging in cases where the fault is unclear. However, this step is essential for establishing liability and calculating any potential recovery. Nevada follows a comparative negligence model for personal injury claims.
Under Nevada law, an injured party can still recover compensation if they are 50 percent or less at fault for the accident. This rule applies to:
- Personal injury lawsuits
- Subrogation claims
- Other types of insurance claims
But there’s a catch: If an injured party is partially to blame for their own injuries, their compensation is reduced according to their share of fault. For instance, if an injured worker is found to be 10 percent responsible for their injuries, their compensation will be reduced by 10 percent. This reduction also affects any subrogation interest the insurance company has in seeking reimbursement. For insurers carrying collision coverage or medical payments under an auto insurance policy, this could mean a lower recovery amount.
The injured party’s degree of fault impacts both their potential compensation and any subrogation rights the insurer holds. The higher the injured party’s share of fault, the lower their settlement negotiations or recovery from the at-fault party. This directly affects the amount the insurance company’s legal team can recover through subrogation.
For example, an auto insurance company covering medical expenses or a health insurance company paying medical bills might end up with less money recovered if the injured party is largely at fault. This can lead to higher insurance premiums for everyone involved.
In cases like these, a personal injury attorney experienced in Nevada subrogation law can help clarify who the at-fault driver or negligent party is. They can assist in the legal action needed to recover money paid for out-of-pocket expenses, medical treatment, and other losses. A skilled attorney can also help accident victims avoid double recovery issues, where an injured worker might inadvertently seek reimbursement for the same injury or same expenses from multiple insurance companies or government programs.
How Long Does the Subrogation Process Take?
It’s hard to say how long the subrogation process may take because it depends on specific factors that are often unique to every accident case. The process can be pretty quick if there’s clear evidence of fault, the responsible party has insurance, and they don’t contest the claim. But this isn’t always the case.
Some of the factors that can affect the timeline of the subrogation process are:
- Who’s at fault for the accident? If there’s strong evidence showing one party bears most or all of the fault for an accident, the subrogation process generally goes much more quickly. However, if the issue of fault is unclear, the insurers or the court system will have to determine who is to blame before any subrogation claim can be completed.
- Does the at-fault party have insurance? When it comes to personal injury claims, everything is easier if all parties involved have insurance. If the party responsible for the injuries in an accident does not have insurance, the injured party and their insurer may need to file a lawsuit to reclaim any compensation. Lawsuits take much more time to resolve than insurance claims.
- Does the at-fault party wish to contest the claim? If the at-fault party in an accident disputes the claim, subrogation can take much longer than under different circumstances. Even if there’s clear evidence demonstrating fault, a refusal to pay creates additional complications that will take more time to resolve.
What Is a Waiver of Subrogation?
A waiver of subrogation is a document that the injured party might sign to prevent their insurance company from pursuing a subrogation claim against the at-fault party in an accident. Generally speaking, this isn’t something you want to do, as the subrogation process can benefit you in some ways, such as helping to keep your premiums low.
You should be very careful before signing a waiver of subrogation. It could impact your ability to recover full compensation for your losses after an accident. Be sure to look over your insurance policy and consult with a personal injury lawyer before making any decisions.
How THE702FIRM Injury Attorneys Can Help
To ensure you get the maximum amount of compensation for your injuries, you need solid legal representation you can count on from the start.
At THE702FIRM Injury Attorneys, our Las Vegas car accident attorneys will:
- Identify all liable parties and all potential sources of compensation: There may be more than one party at fault in an accident, which means you’ll need to file multiple claims to get full compensation for your injuries. For example, if a mechanical defect played a role in causing a car accident in Las Vegas, you may have a claim against the manufacturer of the vehicle as well as the driver who hit you.
- Gather and preserve evidence: You’ll need a convincing case to get the full amount you’re entitled to after an accident. Our team knows how to seek important evidence to help you build the strongest claim possible.
- Handle communication and settlement negotiations: There’s a lot of paperwork and negotiating involved in a personal injury claim. It all must be handled delicately and strategically to achieve the best possible outcome. We’ll make sure the other parties in your claim have the information they need while protecting you from making any mistakes that might hurt your case.
- Represent you at trial: Most personal injury claims are settled out of court, but sometimes going to trial is necessary if you’re up against someone who’s dead set against compensating you for your losses. We’re not afraid to bring claims to trial, and we will provide aggressive representation on your behalf.
Ready to talk to an experienced Las Vegas personal injury attorney? Call THE702FIRM Injury Attorneys today.