What Does "Subrogation" Mean in a Car Accident Claim and Why Is My Health Insurance Involved?

If you were injured in a car accident, you might notice that your health insurance company has an interest once you receive a settlement. This is because of subrogation, a contractual lien built into most health insurance policies.

How Subrogation Works After a Car Accident

When you sign a health insurance agreement, it typically includes a clause stating that if a third party causes your injury—such as the driver who hit you—the insurer will pay for your medical treatment. However, if you recover compensation from the at-fault driver or their insurance, your health insurer has the right to be reimbursed for the medical bills they covered. This prevents “double-dipping,” ensuring you don’t get paid twice for the same expenses.

What You Need to Know

Even though your insurer may have a subrogation claim, an experienced attorney can often negotiate the amount you owe or arrange for deferred repayment. Failing to account for subrogation could leave you personally responsible for reimbursing your health insurer, so it’s important to inform your lawyer about all health coverage involved in your car accident case.