In Texas, auto insurance subrogation is a legal process that allows an insurance company to recover the amount it paid to its insured client for a loss, from the negligent party who caused it. Subrogation allows your insurance company to compensate you for the damages you’ve sustained first, and then seek reimbursement from the responsible party to recoup these costs.

This process ensures that you, as the insured party, receive your compensation promptly, while the task of pursuing the at-fault individual falls to the insurance company. This system also helps the insured to recover their deductible, and assists the insurance company in recouping their payout.

What Does it Mean to Subrogate a Claim?

To subrogate a claim means the insurance company stands in the shoes of its policyholder to recover losses from the at-fault party. It essentially transfers the insured’s rights to make a claim against the responsible person to the insurance company.

Suppose an accident results in property damage, and your insurance company pays for your repairs. In that case, your insurer may later go after the driver who caused the accident to recover those costs. This process is referred to as auto insurance subrogation (often shortened to “subro”).

After paying a claim to its client, the insurer can invoke subrogation rights to obtain reimbursement from the party at fault. This process can include recouping the policyholder’s deductible and the amount paid out for the claim.

Why Should I Subrogate the Property Damage Portion of My Accident Claim?

Subrogating the property damage portion of your accident claim allows you to separate your property damage claim from your personal injury claim, which can simplify the claims process and could potentially result in a quicker settlement.

Here are some specific reasons why you might choose to bifurcate your property damage and personal injury claims:

• Faster Resolution:  Property damage claims are often resolved more quickly than personal injury claims because they are typically more straightforward. By subrogating your property damage claim, you can get compensated for the damage to your vehicle without waiting for the resolution of your personal injury claim.
• Simplified Negotiations:  Separating your claims can simplify negotiations with the insurance company. It can be easier to negotiate a property damage claim on your own, while leaving your personal injury claim to be handled by a lawyer.
• Protect Your Personal Injury Claim:  By separating the claims, you avoid settling your personal injury claim prematurely. There can be ongoing and future medical expenses related to the accident that may not be evident at the time of the property damage claim, and subrogating the property damage portion allows more time to pursue more types of personal injury damages.

While choosing to subrogate the property damage portion of your accident claim may not be the ideal course of action for everyone, it can offer potential advantages. It’s important to engage with a knowledgeable insurance professional or legal advisor to understand the ramifications fully and make the decision that is best for your specific circumstances.

What Are the Pros and Cons of Subrogation?

Like any process, subrogation has its advantages and disadvantages. Understanding these can help you make an informed decision about your approach to recovering damages after an auto accident.

Pros of Subrogation

• Prompt Compensation:  Auto insurance subrogation allows you to receive compensation from your insurance company without having to wait for a settlement or judgment against the at-fault party.
• Reduced Stress:  Your insurance company handles the recovery process, saving you the stress and hassle of dealing with the at-fault party or their insurance company.
• Recovery of Deductibles:  If your insurance company is successful in its auto insurance subrogation efforts, you may receive a refund of your deductible.
• Prevents Damaging Statements:  Subrogation helps by eliminating the need for you to directly communicate with the at-fault party or their insurance company. This prevents the at-fault party’s insurance company from tricking you into unintentionally making statements that can harm the value of your personal injury claim.

Cons of Subrogation

• Out-of-Pocket Deductible:  In an auto insurance subrogation claim, you initially need to go out-of-pocket for your deductible. While the insurance company may eventually recover this sum from the at-fault party, this initial payment can be a financial burden.
• Limited Control:  Subrogation places the recovery process largely in the hands of the insurance company. You have limited control over how the claim is pursued.
• Partial Recoveries:  If the at-fault party is under insured or uninsured, the insurance company may not be able to recover the full amount, which could affect the reimbursement of your deductible.
• Potential Delays:  If the at-fault party or their insurer disputes the claim, it can lead to delays in the insurance company’s recovery and, consequently, your deductible reimbursement.

Although subrogation offers several benefits and can streamline your property damage claim, it is not wholly without drawbacks. Always consult with a legal professional to fully understand your options and rights in an auto insurance subrogation claim.

What Do I Have to Do in a Subrogation Claim?

When involved in a subrogation claim, your responsibilities largely involve cooperation and provision of necessary information. You are expected to:

• Report:  Promptly report the accident to your insurance company
• Evidence:  Provide all relevant facts about the incident, such as a detailed description of the accident, photographs, and a police crash report.
• Participate:  Participate in the investigation by the insurer, which could involve giving a recorded statement or appearing for a deposition.

If your insurer recovers the deductible amount from the at-fault party, they should return that amount to you. Remember, a subrogation claim is essentially handled by your insurer; your role is to support the process with proper and timely information.

Contact Thompson Law if You Were Injured in an Accident and Have Questions About Auto Insurance Subrogation

At Thompson Law, we understand that navigating the complexities of auto insurance subrogation and property damage claims can be overwhelming, especially if you’re dealing with injuries from an accident. Our team of experienced legal professionals is here to guide you through the process, answer your questions, and advocate for your rights.

If you’ve been injured in an accident and have questions about subrogation, don’t hesitate to contact us. You can reach us at 1-800-LION-LAW (1-800-546-6529) or contact us via our web form to schedule your FREE CONSULTATION. Let us help you get your car fixed quickly, and obtain the maximum compensation you deserve.