If youāre dealing with the aftermath of your first serious car crash, youāre probably going to hear and read a few terms that are new to you. One of them may be āsubrogation.ā
Subrogation can help you get a payout from your insurance company even if the other driver was at fault. Your insurer would pay you and then pursue the other driverās insurer or the driver themselves to collect on the money it paid you.
How California law determines liability
First, itās important to understand how California law determines fault, negligence and liability in a crash. California is a āpure comparative negligenceā state. That means a percentage of fault is assigned to each driver.
Crashes that are 100% one driverās fault arenāt very common. Even if one driver is primarily at fault, the other one may be assigned some degree of fault, which would lessen their potential payment by whatever percentage that is.
What subrogation can do for you
If the at-fault driverās insurance company is slow to pay, you may be able to seek compensation from your own insurer. Your insurance company will pay you (minus your deductible) and then go to the other driverās insurer to get reimbursement. Thatās considered subrogation.
You may have to pay your deductible if you need to go this route. However, thatās part of the money your insurer will seek from the other insurance company, which would be considered the third-party carrier (TPC).
Beware of a waiver of subrogation
Sometimes an at-fault driver who doesnāt want another accident on their record will offer to settle directly with the other driver. They donāt want to get their insurance company involved. They might ask you to sign a waiver of subrogation. By doing that, you give up the right to have your insurer take action on your behalf. Thatās almost never a good idea. Some insurance companies donāt even allow it.
Itās a lot to think about at a time when youāre trying to heal and get your life back on track. Itās crucial not to settle for less than you need and are entitled to just to get it over with. Thatās why it helps to have legal guidance to protect your right to fair compensation.