Subrogation Claims

An Insurance Company Has the Right of Subrogation

My 22 year old son recently had an auto accident that was his fault.

His auto insurance lapsed on the 3rd of July and he had the accident on the 10th of July.

The car he hit had uninsured motorist coverage and no one was hurt. My son got a failure to yield and no proof of insurance tickets.

I am on the title with my son and a co-signer of the loan. Can I be held financially responsible?

The other car was totaled, my son had minor damage.

Linda

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Yes as an owner of the vehicle, you can be named in any lawsuits that may be filed. Assuming you have more assets than your son, you will be the “deep pocket” that lawyers like to pursue.

If there really were no physical injuries to the other party, you might not have to worry too much.

However, if the other car owner’s insurance company chooses, it might decide to file a subrogation suit to collect any money they paid to their insured either for medical bills or for the damage to the vehicle.

Whenever an insurance company makes a payment to their insured for damages that another may be responsible for, it has the right to subrogate - or sue - the responsible party for the money it paid out.

The good news is that if it does so, it will probably be willing to settle for less than the full loss and maybe even offer you easy repayment terms.

You and your son have to consider auto and homeowners insurance as necessary protection of your assets and income and not look at it as a nuisance or unnecessary expense.

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