Can an insurance company recover there payment?

Question

if your insurance company pays for your medical bills from an auto accident and then you win a settlement from that accident can your insurance company come after you to pay them back for those hospital bills?

Answer 1

There are lots of people having the same question like you and yours is just another one. Basically speaking about car insurance<!--Car insurance is the most widely purchased type of insurance coverage. Car insurance is designed to protect you, your family, and your automobile. You may get your query answered here,

http://www.best-autoinsurance.we.bs/

Cheap car insurance is a popular avenue these days, but you should be sure that you're getting all of the coverage you need, as damage to your car or another-->person's car may cost you money out-of-pocket if you don't have sufficient coverage and your car insurance rate may go up.

Answer 2

es is correct!!

Answer 3

Agents please, please! You're not giving "real world" answers here.

What insurance paid the medical bills.......your car insurance or health insurance. In many states either of them may have the right to reimbursement. Knowing what state you are in would be a big help in getting you accurate answers.    

Technically, your company doesn't "go after" you to collect the medical bill money back. However, in many cases they ARE ALLOWED to get reimbursement of those bills from the at-fault company when your injury claim is settled

Car insurance will have either Medical Payments (MP) coverage or Personal Injury Protection (PIP).  

In some states the company is allowed to get reimbursement of MP and some states they are not allowed to. For example in WI the company can get reimbursed the MP, but in MO they can't.

PIP coverage is a strange critter and again in some states the company can get those payments back and in some they can't. In MN they can't, but in OR they can (I believe).

I do not deal in health insurance claims, but almost every health policy has a subrogation clause in it that allows them to get reimbursement of the medical bills.

The bottom line here is that whoever paid your medical bills  isn't going to be taking any of your money. IF your state allows your car or health company to get reimbursed the money is not technically coming from your pocket.

You are not allowed to collect twice  on any part of your claim. If any of your insurance pays your medical bills that is legally considered as you "collecting" on your policy. If the at-fault party were to "reimburse" you for the medical bills then that is considered "collecting" again which is considered "Double dipping" as it is called and is not legal. You didn't pay the bills you so you no right to that reimbursement money.

Your injury claim is worth whatever it is, regardless of the medical bill issue. Lets say that the personal injury portion of your claim is worth $3000. This is only for your pain & suffering and inconvenience. Let's also say you had $1900 in medical bills. The total claim value is $4900 and should be settled with you getting the $3000 value of YOUR claim and the insurance getting the $1900 value of THEIR claim.

Normally the at-fault company will issue two checks one to the injured party ($3000) and one to the company that paid the medical bills ($1900).      

Talk to both your adjuster and the adjuster at the at-fault company and compare what they tell you.

Answer 4

Yes.  They can do so if it is in the fine print of your policy.  Walmart is trying to do this as we speak.

Answer 5

If your health carrier paid your medicals for an injury related to an auto accident, yes they can ask for reimbursement.  

However, if the health carrier did not file a lien prior to settlement,  they have no recourse.

Answer 6

There is a case coming up in Alberta where an insurance company (WCBA) intends to collect all of their costs out of a civil settlement before the injured parties (workers) they insured receive anything.

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ES missed the point that an insurance compny collects premiums and pays settlements. Their profit is the difference. They have no interest in paying you if they can legally avoid it, and in a lot of places they have managed to get it into law that they can recover al of their costs out of any subsequent civil settlements. This includes all of their legal fees and anything they have paid out as a settlement to you especially medical bills.

Nothing to say except that the system has become corrupted.

Answer 7

No, they don't go after you. That is what the insurance is for, in the first place--to protect you in the event you are injured. What you are talking about is called subrogation. That is where an insurer can go after another insurance company or an uninsured party when that party is at fault for the claim. The insurance company does not go after its own insured, unless there was fraud involved- for instance, if the insured made claims that were false.  Your insurer is supposed to be on your side, and is accepting your premiums in return for coverage--if you had to reimburse your insurer for paying a covered claim, that would negate the purpose of the coverage~

Hope this explanation helps.

p.s.- most states have some kind of "Med pay" in place where your insurer has to offer you some kind of medical benefit, although in many places it is limited to $5,000.00--

regardless of who is responsible for the accident. These people that are telling you that your own insurer will come after you to reimburse them for medical bills for an auto accident are just plain wrong. Call your insurer and ask how your plan works. Insurance is highly regulated by the state you live in, and that is NOT allowed

#9 misses the point- you asked about auto insurance, not some kind of insurance that covers "injured workers" --that would not be auto insurance--someone injured on a job may be covered by disability or workers comp, not a personal auto policy . And the person that wrote about Walmart is way off base. Walmart is a retailer, not an insurance company.

Answer 8

Good answer, fighting saints.

Medicare seems to be the "worst" fro trying to "get what's theirs!"

So...short answer - if your MEDICAL insurance pays your bills for your injuries and then you receive a huge settlement (or even a small settlement), the medical insurance carrier has the right of subrogation against the negligent party to collect for payments they made.

If the at fault company paid YOU - then the medical insurance company will be looking to YOU to reimburse them for what they paid out on your behalf.

Get it?

Good luck and I hope this helps!

Answer 9

Absolutely.  It's a clause in your policy called, "right of recovery".  Actually, if you collect for medical bills under your policy, you automatically transfer your right to sue the other party, to your insurance company.  AND, your HEALTH insurance has the right to be paid back, too!  You can't double dip.  If YOUR insurer pays medical bills, and the other guy does, too - either him or his insurance - that's double dipping.  Your health and car insurance companies can and will sue you over the repayment.