Representing Victims Who Were Injured In An Accident
Subrogation letters are often sent out in the aftermath of an accident in which you sustained injuries and/or your property was damaged. While subrogation letters can seem scary and intimidating at first, understanding what they are and what to do when you receive them can help provide peace of mind.
What Is a Subrogation Letter?
A subrogation letter is a letter that is typically sent from the insurance (typically auto insurance or health insurance) company of the injured victim to either the insurance company of the person responsible for the accident or to that person directly. For example, if Susan was injured in a car crash that she believes was caused by Brenda, Susan’s insurance company would send the subrogation letter either to Brenda’s insurance company – assuming Brenda is insured – or to Brenda directly – if Brenda is uninsured.
This is done because Susan has sustained damage to her vehicle and/or serious injuries that required immediate remedy – either a repaired or replaced vehicle or immediate medical attention. Susan cannot wait for Brenda’s insurance company – or Brenda herself – to transfer the funds to Susan to cover these damages, so Susan’s insurance company will cover the costs and then seek reimbursement from either Brenda’s insurance company or Brenda herself soon after.
The subrogation letter notifies Brenda’s insurance company and/or Brenda of this invoice that needs to be paid in order for Susan’s insurance company to be reimbursed.
What to Do If You Receive a Subrogation Letter
If you receive a subrogation letter, what you should do next largely depends on the facts of your case. Key factors here may include the following:
- Whether or not you were at fault for the accident
- Whether it is your insurance company sending you the subrogation letter or the other driver’s insurance company sending it to you
- Whether or not you and the other driver are insured
If both parties are insured, then for purposes of how you should respond to the subrogation letter, it does not really matter who was at fault, as the two insurance providers will likely resolve it between themselves. If this is the case, then as long as your insurance provider is aware of the accident, there should not be anything that you need to do.
If you are insured, the other driver was responsible for the accident, and the other driver is uninsured, then there will not be anything that you need to do in response. Your insurance company will send the subrogation letter directly to the other driver in an attempt to be reimbursed.
If you were at-fault in the accident and are uninsured, then you may receive a subrogation letter from the other driver’s insurance company seeking reimbursement directly from you. There is no requirement to respond, but it can be in your best interests to reply. The subrogation claim will likely be sent to a collection agency, and that collection agency may be willing to accept less than the total amount owed in order to settle the debt.
If you do not respond to the subrogation letter, you may continue to receive subrogation letters. At some point, the insurance company may file a lawsuit against you. If you were found to have been liable for the accident, then the court will likely enter a judgment against you. If this happens, there is no guarantee that the insurance company will recover anything from you. However, now that the insurance company is armed with a legal judgment against you, it can garnish your wages, place a lien on any property you own, or garnish funds from your bank account.
Why You Need to Contact an Attorney at CaseyGerry
if you receive a subrogation letter following an accident in which you were injured and not at fault, a San Diego personal injury lawyer with experience in these matters can advise you about your rights and next possible steps to take to protect your best interests.
As part of your free case evaluation with CaseyGerry, you can gain an understanding of your legal rights, your options for how to respond, and a recommended best course of action.
At CaseyGerry, we have been dedicated to the pursuit of justice ever since our launch in 1947. We vigorously defend our clients’ legal rights and fight for justice on their behalf. Call us today to book a cost-free case review. Our clients are never charged any fees unless they win their case.
