If you were involved in a car crash that was the fault of another driver, their insurance is required to pay you for costs such as medical bills and repair or replacement of your vehicle. Unless the other driver was uninsured or underinsured, and you have coverage for that, your insurance company may not have to be involved at all.
Even if it’s determined that you were partially at fault, as long as the other driver bears more than half (even 51%) of the responsibility, under Georgia’s contributory negligence law, they’re responsible for compensating you for your losses. That’s just one reason why it’s crucial to be sure the circumstances surrounding the crash are reported accurately to law enforcement and insurers.
What subrogation does
If there’s any kind of delay in getting compensated by the other driver’s insurer, you may be able to ask your own insurer to compensate you and, in turn, seek that compensation from the other driver’s insurer. That is an example of subrogation.
You may have to pay your deductible if you need to go this route. However, that’s part of the money your insurer will seek from the other insurance company, which would be considered the third-party carrier (TPC).
If you have a good insurance company and they are able to take care of this for you, it can save you considerable time and stress while you focus on healing.
What if the other driver doesn’t have any or enough insurance?
If the at-fault driver has little or no insurance, your uninsured/underinsured coverage may not be nearly enough to cover your expenses. In Georgia, this type of insurance is capped at $25,000 a person. This doesn’t go far if you’re dealing with serious injuries – or even the loss of a luxury vehicle.
It may be necessary to take legal action against the driver to recoup the money the accident has cost you and potentially other damages. Before you make any big decisions or agree to a settlement that may not be large enough, it’s wise to have sound legal guidance.