A Client Focused Firm Request Consultation
Auto Accident Attorney

Why My Car Accident Attorney Needs My Insurance Information?

By: Lain A. Lawrence - Personal Injury and Car Accident Attorney June 14, 2023

Motor vehicle accidents are extremely traumatic. They result in serious injuries which can impact a victim’s entire life. Injured plaintiffs can be out of work for extended periods of time. They can also have extreme pain that prevents them from doing the simplest of movements.

Meeting with a Colorado injury attorney can also not be a pleasant event. An injured victim will have to recount the experience and talk with a stranger for hours about their injuries and life. Part of this experience will require a plaintiff to speak about their own personal auto or health insurance. 

A Denver Car Accident Attorney asking this can be stunning. The at fault driver is the person that caused the accident, and they should be required to pay for their negligence. It is important for a Denver car accident lawyer to get this information.

Health Insurance can Reduce Out of Pocket Expenses after an Auto Accident

The most important part of a personal injury case is medical treatment. An attorney can only get you compensation for the injuries you sustained. Doctors and medical providers will give you treatment to relieve your injuries. 

Insurance companies will not offer any settlement until your treatment is completed. This means that an auto accident victim will be required to pay out of pocket until everything is completed. Health insurance can relieve the burden of these expenses. 

An auto accident plaintiff should not have to worry about paying for treatment after a car crash. A personal injury lawyer will need to know about their client’s health insurance to help ensure ongoing care. They will also have to worry about subrogation. 

Health Insurance has a right of subrogation after a car accident.

Subrogation is a legal term that ultimately means a right to be paid back. The way it works is a defendant will be required to pay for any harm they caused. The health insurance company is required to pay for a plaintiff's treatment. A plaintiff will be required to pay a health insurance company back out a settlement.

This is beneficial to a car accident plaintiff in two ways. First, the plaintiff could potentially receive a windfall. Most health insurance companies will not pay to full billed amount of a medical bill. Instead, they will pay a reduced amount. 

When dealing with the at fault driver’s insurance however, a plaintiff can recover the full billed amount. This is commonly referred to as the collateral source rule. The defendant will be entitled to know about any payments by other parties towards medical expenses. 

To the extent a collateral source paid less than the billed amount, Colorado law does not permit the defendant to benefit. A plaintiff has paid premiums for their health insurance and should receive the benefit of having their own insurance.

A health insurance company will also be required to reduce their subrogation interest. A personal injury plaintiff will pay their attorney out of a settlement. By requiring the insurance company to take less, they will share in the attorney fee. The health insurance company is receiving the benefit of the plaintiff hiring an attorney without paying anything. 

Therefore, Colorado law has provided ways to require health insurance companies to reduce their claimed subrogation interest. This reduction will ultimately result in more money going to the client. Ultimately requiring the health insurance company to contribute to the attorney fees.

A personal injury attorney will be familiar with Colorado Negligence Law. They will understand how to handle the case, including the subrogation interest. It is always important to speak with an attorney to understand how best to handle a car accident case.

A Plaintiff’s Auto Insurance Is Important in a Car Accident Claim.

Again, the ultimate party that should be required to pay for a car accident is the at fault driver. Car accident cases have a sad reality. A defendant could not have any or enough insurance to cover a plaintiff’s medical expenses. In some cases, a plaintiff could have UM/UIM coverage.

UM/UIM refers to uninsured or under insured motorist coverage. This coverage will provide benefits under an auto policy. The coverage is for bills that exceed a defendant's insurance limits. It will also apply if the defendant does not have insurance.

A personal injury attorney will want to know about possible paths to recovery to ensure those benefits are available. A typical car accident client will meet with an auto accident lawyer around the time the accident happens. At this time, the plaintiff has received minimal treatment and the full extent of the injuries is unknown.  The plaintiff will also not know whether a defendant has auto insurance or their policy limits. 

This type of coverage can be extremely important. The language of a UM/UIM policy requires a plaintiff to do certain things in order to safeguard this coverage. 

For example, a plaintiff is required to get permission to settle their claim with the at fault driver. This permission must be obtained prior to accepting any offer. If a plaintiff fails to get permission, they could void their benefits under the UM/UIM policy.

A plaintiff could also have medical payment benefits. These are benefits that will be paid for medical damages regardless of fault. The typical amount for this type of coverage is $5,000. It is important to use these benefits. 

Unlike health insurance, an auto insurance company will not have a right to subrogate medical payments. The way these benefits are used could benefit an injured plaintiff.

It is important to speak with a car injury lawyer that is familiar with auto insurance policies. An auto accident lawyer will be able guide you in the best way to maximize any recovery. They can also safeguard any potential pools of recovery and pursue a UM/UIM claim.

Speak with a Colorado Car Accident Attorney

A plaintiff involved in a car accident will have a lot of issues to deal with. They will have injuries that require treatment. This treatment can result in lost wages and pain and suffering. Unfortunately, they will also have to deal with insurance companies. 

The goal of the Lawrence Law Firm is to simplify the process. We want our clients to focus on treatment and getting their lives back to normal. We will handle the entire legal process from start to finish.  Our clients must only worry about getting better and getting back to normal.

We are in Aurora, Colorado, but we handle cases throughout the Denver Metro Area. We have experience in Denver, Arapahoe, Douglas, Adams, Jefferson, Boulder, and Broomfield County. 

Do not hesitate to request a free consultation from our car accident lawyer if you were involved in car accident in Denver. We offer free consultations and contigency fees for any personal injury case.