What is Subrogation?

As lawyers who represent people in Tennessee car accidents and Tennessee truck accidents, we are frequently asked about subrogation.

What is subrogation?  In the context of auto and truck accident cases, subrogation most frequently arises because the injured person’s health insurance company has language in the health insurance contract which provides that the insurer has an interest in (is "subrogated’) a portion of any recovery that the injured person receives in a personal injury settlement or after a trial.  

An example will tell you how subrogation works.  Let’s assume that your health insurance policy has a subrogation provision.  Assume further that you are in a car wreck and your health insurance company pays $15,000 in medical bills,  If you recover $60,000 from the at-fault driver, you will have re-pay your insurance company  up to $15,000 because it is "subrogated" to your recovery.  The exact amount you will have to pay is depending on multiple circumstances.

Medicare and Tenncare  also have a subrogation interest in personal injury recoveries if one (or both) of those government programs make medical payments for injuries that later give rise to litigation.

The law concerning subrogation is complicated and a knowledgeable lawyer can sometimes negotiate a reduction in the amount that has to be re-paid to the private or governmental insurance company.  You need an experienced Tennessee personal injury lawyer to help you recover a justice recovery from the at-fault party and work with any company or governmental entity holding a subrogation interest to maximize your net recovery.

If you have a valid Tennessee personal injury case, we would be honored to help you secure justice.  Call me at 866-812-8787 or complete the Contact Form and we will call you.