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What Is Car Accident Subrogation?
Generally, a person who suffers personal injury or property damage in a car accident can file a compensation claim or lawsuit against the person who caused the accident or their insurance company. But because such third-party insurance claims often take a while to resolve, the injured party may first file an insurance claim with their auto insurance company and get payment, especially when the injuries or damage they suffered require urgent attention.
When this happens, the injured party’s insurance company may file a direct claim against the at-fault party or their insurance company to enable them to get reimbursement for the amount they released to the injured party. This process is known as subrogation.
The term subrogation is a derivative of the word “subrogate,” which means “to put in place of another” or “to substitute someone or something for another.” It is a common insurance term that refers to the right of an insurance company to legally pursue a compensation claim against a third party in place of the person (injured party) who originally had the right to claim compensation. It also allows the injured party’s insurance company to claim a share in any amount the injured party may obtain in a personal injury settlement or lawsuit, even if the injured party obtained the settlement or fought the lawsuit on their own, thereby reducing the amount of money the injured party is left with.
Subrogation is a controversial subject and is prohibited in some states. However, in such states, many insurance companies sometimes try to use backhand methods (such as sneaking subrogation clauses into the fine print of the insurance policies) to subrogate insurance claims and get money that the injured party is lawfully entitled. Whether or not such actions are valid depends on state law. But, in cases where they are not, it is the duty of the affected (injured)party to challenge them by legal means and protect their right to compensation.
If you’ve been involved in a car accident in Missouri, this guide explains the personal injury subrogation laws in the state to help you understand your rights and determine whether your insurance company is acting or has acted contrary to the law. This could help you determine whether or not you need to take legal action against them to protect your entitlements. Read on to learn more.
Auto Accident Subrogation in Missouri
Generally, car accident subrogation claims or clauses in Missouri are considered unlawful and contrary to the state’s public policy. This is because, under Missouri law, only the victim of a car accident or their dependents/personal representatives, in some cases, can pursue a claim for compensation from the at-fault driver or their auto insurance provider. Such claims cannot be assigned to third parties, including insurance companies.
This means that if a car accident victim’s insurance company pays for medical expenses and other associated costs from the car accident, the insurance company cannot step into the victim’s shoes and seek reimbursement from the other driver’s insurance company. As such, it is unlawful for a car insurance company to do any of the following;
- require a car accident victim to sign an agreement to reimburse the insurance company if the victim obtains a personal injury judgment or settlement against the at-fault driver or their insurance company;
- require the injured party to grant them any right over their personal injury claim.
Sometimes insurance companies may refuse to process their subscriber’s claim for medical bills or related expenses after a car accident unless the victim signs an agreement agreeing to subrogation. If you are in such a situation, you can take a cue from the plaintiff in Hays v. Missouri Highways and Transportation Commission and file a lawsuit against your insurers with the help of Insurance Claim Attorneys.
The decision of the Missouri Court of Appeals, in that case, is proof that such agreements are void and that it is unlawful for an insurance company to refuse to process a person’s claim unless they signed a subrogation agreement.
Got More Questions About Car Accident Insurance and the Subrogation Process in Missouri? Contact Skilled Attorneys at Buchanan, Williams & O’Brien for Answers
Subrogation can help your insurance company recover some of its expenses after a car accident. But it could affect your right to claim compensation or the amount you can get in a personal injury lawsuit/settlement. Hence you must ensure that the actions of your insurers are lawful so that your ability to recover compensation from the at-fault party is not jeopardized.
At Buchanan, Williams & O’Brien, we are dedicated to helping victims of car accidents navigate the insurance process and obtain the maximum compensation possible. We understand how Missouri’s car insurance and subrogation laws/exceptions work, so you can rely on us to clarify any issues and advice you on your rights under the law.
Our web page showing some of our Court of Appeals Wins is a testament to our tenacity and diligence. You can expect the same level of commitment from us if you let us handle your case and protect your interests.
Contact us to discuss your concerns with one of our experienced attorneys. Let us help you secure your right to compensation.
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