What Is Subrogation in a Personal Injury Case?

If you are seeking compensation in a personal injury case, be aware that your insurance company may pursue reimbursement of the money it paid you through a concept known as subrogation. This is a legal right held by an insurer or benefit provider that entitles them to some or all of the money you acquire through your lawsuit. 

If you’ve received a subrogation survey, don’t respond until you meet with a personal injury lawyer. They can help you understand what subrogation claims in personal injury cases mean and draft a strategic response.

What Is Subrogation, and When Does It Occur?

Subrogation is a legal process through which an insurance company or other third party seeks reimbursement for what it has paid toward your claim, often after you receive an additional settlement from a third party. 

For example, you may have been involved in a car accident and filed a claim with your auto insurance provider. The insurer paid $5,000 toward your claim. You later settled a personal injury case with the at-fault driver for $20,000. The insurer may have the right to seek reimbursement of their $5,000 from you because you later recovered compensation from the at-fault driver. 

The process generally starts with your insurance company receiving a subrogation survey that asks for details of the accident. Your response can impact the outcome of your settlement.  

Understanding Limitations Under Kansas Law 

Different states have different laws regarding third parties’ subrogation rights in personal injury cases. In Kansas, a few limitations may apply, allowing you to keep a larger portion of your settlement than in other states. 

If your auto insurance paid for a portion of your medical bills or lost wages through Personal Injury Protection (PIP) coverage, your insurer may have the right to subrogation within applicable restrictions:

• Kansas recognizes the “made whole” doctrine, which may prevent insurers from enforcing subrogation unless you have been fully compensated for all of your damages.
• The insurer must pay a proportionate share of your attorney’s fees if it successfully subrogates against a third party. 

In Kansas, private health insurance providers are generally restricted from subrogating or seeking reimbursement from your personal injury settlement except in a few limited cases, such as under Medicare, Medicaid, and ERISA plans. 

If your uninsured/underinsured motorist coverage paid for a portion of your damages, your insurer generally has subrogation rights. 

What To Expect in Your Personal Injury Claim 

When filing a personal injury lawsuit, understanding potential medical liens or claims against your eventual settlement can help you better predict the financial outcomes of your case.

If you previously accepted funds from an insurance company to cover accident-related expenses, subrogation may mean that you cannot keep your entire settlement award. Your attorney can explain more about how this legal concept applies to your case.

Contact Larry Wall Trial Law Today  

Inquiring about what subrogation claims are in personal injury cases is just one of the many questions to ask a personal injury lawyer. If you were injured in an accident in the greater Wichita area, call Larry Wall Trial Law today at 316-265-6000 to schedule a free consultation.