Understanding the Details of Insurance Subrogation
When you’re injured in an accident, your primary concern is recovering—physically, emotionally, and financially. Insurance is supposed to help with that recovery, but behind the scenes, your insurance provider may be working to recover its own losses through a legal process called subrogation.
If you’ve received a settlement or medical payments after an accident, especially in Arizona, understanding insurance subrogation is crucial. It can affect how much compensation you ultimately receive and whether you’ll need to pay any of it back.
What Is Insurance Subrogation?
Subrogation is a legal right that allows an insurance company to pursue a third party that caused an insurance loss to the insured. Essentially, after your insurer pays for damages—like medical bills—they may seek reimbursement from the party responsible for the accident (or their insurer).
This process helps insurance companies limit their losses while ensuring that the party at fault is held financially responsible.
A Common Example
Imagine you’re involved in a car accident in Scottsdale, and the other driver is clearly at fault. Your own auto insurance company covers your initial medical bills under your policy. Later, you receive a settlement from the at-fault driver’s insurance company. In this case, your insurer may have the right to recoup the medical payments it made on your behalf through subrogation.
If subrogation is successful, your insurer gets reimbursed for what it paid you, and you may see a reduction in your final payout, depending on the terms of your policy and state laws.
How Subrogation Affects Injury Victims
While subrogation is a behind-the-scenes legal process, it has a direct impact on your personal injury settlement or lawsuit. In Arizona, insurers are typically required to notify you when they plan to seek subrogation, and you may have the ability to negotiate how much they can claim from your settlement.
In some cases, your attorney may be able to reduce the amount your insurer can recover, ensuring you walk away with a larger portion of your compensation.
Arizona’s Subrogation Laws
Arizona follows what’s known as the “made whole doctrine.” This principle states that an insurer generally cannot pursue subrogation unless the insured (you) has been fully compensated for all losses.
However, there are exceptions. Some insurance policies contain language that overrides the made whole doctrine. That’s why it’s essential to have a legal team review your policy and represent your interests in any negotiations involving subrogation.
Why You Need a Lawyer
Subrogation issues often arise during car accident or personal injury claims when insurance companies want their money back. Without legal guidance, you might agree to a settlement without understanding how much of it could go to your insurer instead of you.
At Rideout Law Group, our attorneys are experienced in negotiating subrogation claims and maximizing the net compensation our clients receive. We work directly with insurers and medical providers to ensure you aren’t left footing the bill after someone else’s negligence.
Speak with a Personal Injury Attorney in Arizona
If you’re facing an injury claim and are worried about insurance subrogation, Rideout Law Group is here to help. From Scottsdale to Lake Havasu, our team fights to protect your rights and your recovery.
📍 Scottsdale Office:
11111 N Scottsdale Rd, Suite 225, Scottsdale, AZ 85254
📞 (480) 584-3328
📍 Lake Havasu Office:
2800 Sweetwater Ave, Suite A104, Lake Havasu City, AZ 86406
📞 (928) 854-8181
📧 Contact Us Online
🕘 Free and Confidential Consultations Available