In any given car accident, there are multiple parties involved. First, you have the drivers, who are the most immediately impacted by the accident. Then, you have their insurance companies, of which the at-fault driver’s insurance bears the brunt of responsibility (depending, of course, on the situation and percentage of fault).

Next in line are medical insurance companies. If a car accident victim requires medical treatment following a collision, bills will mount, and those expenses will need to be paid.

If you thought navigating an insurance claim was complicated enough as it is, hold on to your seatbelts because things are about to get even more complicated.

Subro-What?

When healthcare expenses are incurred after a car accident, your medical insurance typically kicks in to cover them. If you have personal injury protection (PIP) benefits on your auto policy, that coverage will be applied first, followed by your health insurance coverage.

Your medical insurer will pay for all associated healthcare costs (minus co-pays, deductibles, etc.) per your insurance policy. This part of the process is just like any other visit to the clinic or hospital. The difference, however, is that if you receive a settlement for a car accident, you may need to pay back part of it to your insurance company. This process is called subrogation, and it can catch many accident victims off guard.

What is Subrogation?

Subrogation rights in Texas are authorized through Civil Practice and Remedies Code, Chapter 140.Subrogation is a legal process that allows the healthcare insurer to “step into your shoes” to recover money they paid on your behalf from the at-fault party or their insurance company. It also gives them the right to seek repayment from your settlement if you recover damages from another source.

If your car accident settlement includes compensation for medical bills and expenses, then your healthcare insurance company may attempt to seek reimbursement for what they paid on your behalf. For some individuals, this amount can be quite a substantial portion of their settlement.

Work with a Personal Injury Lawyer

To ensure your rights are protected, engage a Texas personal injury attorney right away. They are experienced negotiators who can work with insurance companies to ensure you receive a fair settlement.

If you’re facing a repayment request from your medical insurance after a car accident settlement, don’t go it alone. Our team at McKinney Vos PLLC is here to protect your rights and financial interests. We offer free consultations to discuss your options and help you settle your personal injury case. Contact us today to ask your questions.