What Is a Subrogation Claim and How Do I Fight It?

Subrogation claims can be complex and require individuals to be informed and prepared to protect their interests. It’s important to understand the ins and outs of subrogation claims to effectively challenge them and minimize their impact on your financial well-being. 

In this article, we’ll explore what subrogation claims are and their purpose. We’ll also offer practical strategies for fighting subrogation claims. From gathering evidence to comprehending insurance policies and seeking legal advice, we’ll equip you with the knowledge needed to confidently challenge subrogation claims.

What Does Subrogation Mean in an Insurance Claim?

Subrogation in an insurance claim refers to the legal process by which an insurance company seeks reimbursement from a third party responsible for the damages the company has paid out to its policyholder. In Indiana, subrogation in personal injury actions is covered by Indiana Code § 34-53-1. 

Any insurance company that pays a claim on behalf of its policyholder is entitled to subrogation rights against the third-party responsible for the damages. This means the insurance company essentially steps into the shoes of the policyholder and gains the right to pursue legal action against the party responsible for the damages, effectively shifting the financial burden from the injured party to the at-fault party. 

When Does Subrogation Occur?

As stated above, subrogation comes into play when an insurance company pays for the damages incurred by the policyholder and subsequently seeks reimbursement from the party deemed responsible for the incident. 

This typically occurs in scenarios involving accidents caused by someone else’s negligence or intentional wrongdoing. For instance, if you were involved in a car accident in Indiana that resulted in injuries and property damage, your insurance company might cover your medical expenses and car repairs initially. However, they may then assert their right to recoup these expenses from the at-fault driver’s insurance.

Types of Subrogation Claims in Indiana

Subrogation claims can arise in various situations, including car accidents, property damage, and more. It’s important to note that the specific circumstances of each case may influence the type of subrogation claim that applies, and your lawyer will help you build a strong case in your favor.

Property Damage

If an individual’s property is damaged due to the negligence of another party, the insurance company can pursue the responsible party for reimbursement. The Indiana Code § 34-11-2-4 sets the statute of limitations for property damage claims and personal injury cases in Indiana, which is two years. 

This means you have a window of two years from the date of the incident to file a lawsuit seeking compensation for your injuries. 

Car Accidents

Car accidents are one of the most common scenarios where subrogation claims arise. If an individual is injured in a car accident and their health insurance policy includes a subrogation clause, the insurance company can seek reimbursement from the at-fault driver’s insurance company.

In the unfortunate event of an accident, the aftermath can be both physically and financially taxing. In this scenario, it’s important to look for the support of a lawyer with a deep understanding of the Indiana legal landscape. 

How to Negotiate a Subrogation Claim?

An insurance company that seeks subrogation must give notice to the responsible party and allow them an opportunity to contest the claim. In this scenario, negotiation is a give-and-take process. Be prepared to make reasonable compromises while still advocating for a fair resolution.

If you’ve been involved in a car accident, for example, you first need to file a car accident claim and then start to negotiate the subrogation claim. By following these steps and approaching the negotiation process strategically, you can increase your chances of reaching a favorable outcome in your subrogation claim.

• Documenting Evidence

One of the key steps in negotiating a subrogation claim is to meticulously document all evidence related to the incident. This includes medical records, police reports, witness statements, and any other pertinent information. 

Detailed records can help establish the extent of the damages and the liability of the responsible party. In this sense, the more comprehensive the evidence, the stronger your negotiating position. Additionally, keep a record of all communication with insurance companies and any other involved parties.

• Determining Liability

Establishing liability is crucial in subrogation claims. Your attorney will investigate the circumstances of the incident, analyze applicable laws, and build a strong case that places the responsibility on the at-fault party.

Before entering negotiations, it’s important to determine the liability for the damages. Carefully review the circumstances of the incident and gather any available evidence to support your position. If there are multiple parties involved, it may be necessary to assess their respective degrees of fault. Understanding the liability will help you negotiate from a position of strength and present a compelling case to the insurance company.

• Negotiating with Insurance Companies

Insurance companies are skilled at minimizing payouts. But having a personal attorney on your side ensures that you’re not taken advantage of during negotiations. They’ll leverage their knowledge of the Indiana legal framework and the specifics of your case to secure the best possible outcome.

When negotiating a subrogation claim, it is essential to approach the process with a clear strategy. Here are some tips to keep in mind:

• Familiarize yourself with the terms of your insurance policy and any applicable laws or regulations. 
• Establish clear lines of communication with the insurance company handling the subrogation claim, since clear and consistent communication can facilitate a smoother negotiation process.
• Use the evidence you have gathered to support your position, articulate the liability of the responsible party, and the extent of the damages. 
• Seek legal representation if the subrogation claim is complex or the insurance company is unwilling to negotiate in good faith.

Why Do You Need a Lawyer for a Subrogation Claim

Subrogation claims can be challenging to navigate and most often demand legal expertise. In this scenario, the services of a personal injury lawyer become essential. First, an attorney can provide legal expertise and guidance to help protect your rights and ensure you receive fair treatment throughout the subrogation claim process. They can also advocate on your behalf and negotiate with insurance companies for you to receive a fair settlement.

On the other hand, a lawyer will help with gathering and documenting evidence to support your case. They can work with experts to assess the extent of the damages and determine liability for the incident. 

Lastly, if negotiations fail, an attorney can represent you in court and litigate the subrogation claim. They can present a compelling case and advocate for your interests in court. 

Although subrogation claims often entail complicated processes, it’s possible to successfully overcome them. Through prompt response, strategic negotiation, and professional guidance, individuals can confidently navigate subrogation claims. If you need help with safeguarding your rights and interests in a subrogation claim, don’t hesitate to reach out to Christie Farrell Lee & Bell for a free consultation with our Indianapolis personal injury lawyer if you are still asking yourself, “What is subrogation?”

Frequently Asked Questions About Subrogation Claims

Should I Respond to a Subrogation Letter?

Absolutely. Ignoring a subrogation letter can have serious repercussions. Responding promptly and enlisting legal assistance can help you navigate the situation effectively, safeguarding your rights and interests.

Why Is Subrogation Bad?

While subrogation serves as a mechanism for insurance companies to recover expenses, it can sometimes lead to complexities, delays, and disputes. Having a knowledgeable attorney on your side can mitigate these challenges and streamline the process.

How Often Is Subrogation Successful?

The success of a subrogation claim varies based on the specifics of the case. With the guidance of a personal injury lawyer, your chances of a successful subrogation claim significantly improve, as they work to ensure you receive the proper compensation.