What Does It Mean to Subrogate a Claim?

by Amber Cortez | June 23rd, 2020 | Auto Accident

When you are involved in a car accident, especially for the first time in your life, the process of filing an insurance claim can be quite confusing. This can be especially frustrating as you seek financial recovery for the damages you and your property have suffered.

One route many car accident victims decide to go with when they want a fast financial settlement is to subrogate their accident claim with their insurance company.

Your McAllen personal injury lawyer at J.Gonzalez Injury Attorneys is here to explain what exactly subrogating your claim means and the downsides of taking this route.

Subrogation Explained

An insurance term, subrogation is a common process in which your insurance company pays you a settlement for your damages upfront and goes after the negligent party to recoup whatever amount was given to you.

From a legal standpoint, subrogation is when one party decides to seek legal action and pursue financial compensation on behalf of another party, in order to collect a debt that was owed. This means that when a plaintiff decides to subrogate their claim, they are essentially transferring their rights to seek legal action to the insurance company, since they already collected a settlement upfront.

In some instances, if an insurance company is successful in their subrogation claim, the plaintiff might be able to get reimbursed for any deductibles they paid to their insurer.

The Potential Downsides of Subrogating a Claim

While having a claim subrogated can be a fast way to get financial compensation for your car accident, it does come with its cons.

For starters, once you receive a settlement from the insurance company, you are essentially waiving your right to directly seek legal action against the negligent party. This could mean that the settlement you receive from your insurance company may not be enough to cover the cost of all the damages you have suffered. 

So even if you receive minimal compensation, from a legal standpoint, there is no possible way to pursue nor negotiate any additional compensation. Once you get a settlement, that’s it!

Pursuing Legal Action Against the At-Fault Party

While having your claim subrogated may seem like the simplest choice when you want to recover damages for your car accident, it’s best to evaluate all additional options before waiving your rights to do so. 

As a victim, the best way to maximize your car accident claim is to seek legal action against the negligent party yourself.

With years of legal experience and a proven history of success, the McAllen personal injury lawyers of J.Gonzalez Injury Attorneys can help car accident victims obtain the justice and financial compensation they need to get their life back in order.  


Injured in a car accident? Contact J. Gonzalez Injury Attorneys today for a FREE no-obligation case evaluation!

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