Filing a lawsuit after an injury is a complex process. When you reach the end and it’s time to discuss a settlement, you may come across something you didn’t expect. A subrogation lien allows entities to seek reimbursement for what they spent to pay your claim, and insurance companies usually utilize it. While these liens are typical in personal injury cases, the news may surprise you because it can reduce the amount you receive — significantly so, in some cases. Hiring a personal injury attorney is essential during the process. They can help you get the maximum settlement amount from other parties and negotiate with insurance companies regarding the lien amounts.
Naturally, you may wonder how a subrogation lien might affect your settlement. There’s no universal answer, and the dollar amount will vary depending on how much the insurer spent on your claim. Your attorney can help you understand how much your insurance company may ask for and how negotiations can help bring that number down. While subrogation liens are complicated, the basics are more straightforward than you might realize. Understanding subrogation liens can help ensure you aren’t taken aback at the end of the settlement process if you’re involved in a personal injury lawsuit. It also highlights the importance of a qualified personal injury attorney to take the lead on working out the terms of your settlement — even once you understand how subrogation works, you’ll need a lawyer familiar with state and federal subrogation law.
What Is A Subrogation Lien?
A subrogation lien allows insurance companies to recover the money they’ve spent, effectively ensuring that you won’t get paid twice. Let’s say you’re on the road when another car hits yours, and the other driver’s at fault in the crash. You’re hospitalized for your injuries and start physical therapy after your release, racking up medical bills in the process. Depending on the specifics of your policy, your insurer will likely cover your medical and other expenses, whether partially or in full. Then, you decide to file a personal injury lawsuit against the other driver and can obtain a settlement successfully. Your insurer then has the right to step in and recoup the funds they spent on your medical bills and other costs. The insurance company will likely notify everyone — attorneys, insurers, and involved parties — about their subrogation plans. You may ask whether you can get out of your insurer taking a portion of the settlement. Subrogation liens are generally enforceable by law, as the insurer has a legal right to pursue reimbursement, but they must meet certain requirements.
What Happens After A Subrogation Lien
Once you’re notified of a subrogation lien, you and your attorney will follow steps to ensure you’re protected during the process and that everything is done correctly. Here are two examples.
Check Your Insurance Policy: Only a small percentage of people read their insurance policies in full before signing them. That means your policy may have a subrogation or reimbursement clause without realizing it. While most policies include this language, you should read the contract you signed to ensure the insurance company has the right to pursue a subrogation lien.
Ask For A Detailed Breakdown: You must make sure that the costs the insurance company wants to recoup from your settlement are all related to your injury. You should ask for an itemized list of all the expenses for which the insurer is seeking reimbursement. Your attorney can help you carefully examine the list to guarantee only relevant costs are included.
How An Attorney Can Help
Negotiating a subrogation lien is something you shouldn’t do on your own. Your attorney can interact directly with the insurance company to lower the amount taken from your settlement. They’ll also review the lien’s terms to ensure they are fair to you. Also, a lawyer will know relevant state law and consider it during the negotiations. Working with an attorney is the most effective way to respond to a subrogation lien. It will ensure you get the settlement you deserve for your losses, including pain and suffering, lost wages, emotional distress, and physical injuries.
You have enough on your plate while you recover physically and emotionally from an accident due to someone else’s negligence. The Cochran Firm Texas can review your subrogation lien and advocate for you in a personal injury lawsuit. We can help you get the settlement you deserve. Call us at 1-800-843-3476 or contact us online today for a free case consultation.
At Cochran Texas, we understand that needing legal help can be scary. It doesn’t have to be. We are a trusted leader in the legal profession and in our community. We know you are more than a case number. We get to know you as a person. This allows us to offer a balanced and thoughtful approach to giving you the best possible legal representation. Our mission is to protect the legal rights of ALL people in our community. No matter your race, gender, background or income level you have a right to skilled legal help. Call us at 800-843-3476.
