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The insurance adjuster says that I will have to sign 'subrogation rights.' What does it mean?

Q: Before settling my Colorado Springs car accident the insurance adjuster says that I will have to sign "subrogation rights" before being paid my compensation. What does it mean?

A:

Whether you are being compensated by your own insurance company or by the other party's, insurance companies want to be able to sue the negligent third party who caused the accident. Giving them subrogation rights means you give up your rights to sue the negligent party (because you have been compensated) and you hand over this right to the insurance company, who will seek to recover damages from the party at fault.

It is not unusual for insurance companies to sue the negligent party for amounts much larger than the compensation you recovered. The best way to prevent them from making a profit on your accident is to ask for legal advice before you settle with the insurance company-especially when a large amount is involved, including not just the compensation for material damage but also for expenses resulting from sustained injuries.

Call 866 254 1274 (toll-free) or 473 3040 (local) Auto Accident Attorney Robert J. Anderson in Colorado Springs for a free consultation, or send us an e-mail.