Why My Car Accident Attorney Needs My Insurance Information

Health Insurance Can Reduce Out-of-Pocket Expenses After an Auto Accident

The most important part of any personal injury case is medical treatment. An attorney can only recover compensation for the injuries you sustained, and medical providers play a critical role in diagnosing and treating those injuries.

Insurance companies rarely offer meaningful settlement discussions until medical treatment is completed or the extent of the injuries is known. This means many car accident victims must manage medical expenses for weeks or even months after a crash.

Health insurance can significantly reduce the financial burden of treatment following an accident. For this reason, a Colorado car accident attorney will typically ask about a client’s health insurance coverage early in the case. Understanding this coverage allows an attorney to help coordinate treatment while also preparing for potential subrogation claims.

Health Insurance Has a Right of Subrogation After a Car Accident

Health insurance companies typically have a legal right known as subrogation. Subrogation simply means the insurance company has a right to be reimbursed for medical bills it paid if the injured person later recovers compensation from the at-fault driver.

In a typical case, the health insurance company pays for the injured person’s treatment. If the injured person later receives a settlement from the at-fault driver’s insurance company, the health insurer may request reimbursement from those settlement funds.

This process can actually benefit the injured victim in several ways.

First, health insurers usually negotiate reduced payment rates with medical providers. Instead of paying the full billed amount of a medical bill, the insurer often pays a discounted rate.

However, when pursuing damages against the at-fault driver, Colorado law may allow recovery of the full value of the medical bills. This concept is often referred to as the collateral source rule.

Under the collateral source rule, the defendant generally cannot benefit from payments made by the injured person’s health insurance. Because the injured person paid premiums for their coverage, they are entitled to the benefit of that insurance.

Health insurance companies are also typically required to reduce their subrogation claims to account for attorney fees and litigation costs. Since the injured person’s attorney helped recover the settlement that reimburses the insurer, the insurer must often share in the cost of obtaining that recovery.

Because these issues can be complex, it is important to work with an attorney familiar with Colorado personal injury law and the negotiation of medical liens and subrogation claims.

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

Although the at-fault driver should ultimately be responsible for paying damages, many accidents involve drivers who either lack insurance or carry minimal coverage.

This is where a victim’s own auto insurance policy may become extremely important.

Many Colorado drivers carry uninsured or underinsured motorist coverage (UM/UIM). This coverage can provide compensation when the at-fault driver has no insurance or does not have enough insurance to fully cover the injured person’s damages.

Because the extent of injuries and available insurance coverage may not be known immediately after an accident, a personal injury attorney will often review the client’s auto insurance policy early in the case.

UM/UIM policies often contain strict requirements that must be followed to preserve coverage.

For example, many policies require a victim to obtain permission from their insurance company before accepting a settlement from the at-fault driver. Failing to follow these requirements could jeopardize the victim’s ability to pursue a UM/UIM claim.

In addition to UM/UIM coverage, some auto insurance policies include Medical Payments Coverage (MedPay). MedPay provides funds to pay medical expenses regardless of who caused the accident. In Colorado, MedPay coverage is commonly around $5,000.

Unlike health insurance, MedPay benefits typically do not have subrogation rights, which means the insurance company may not seek reimbursement from the settlement.

Using MedPay benefits strategically can help reduce out-of-pocket expenses while preserving as much of the final settlement as possible.

The same insurance issues often arise in more complex cases as well, including motorcycle accidents, commercial truck crashes, and rideshare (Uber and Lyft) claims, where multiple policies and higher coverages limits may be involved.

For these reasons, it is important to work with a lawyer who understands both personal injury law and the complex language found in auto insurance policies.

Speak With a Colorado Car Accident Attorney

A person injured in a car accident must deal with many challenges. Medical treatment, lost wages, and physical pain can significantly disrupt everyday life. On top of that, victims often find themselves dealing with insurance companies that are focused on minimizing payouts.

At the Lawrence Law Firm, our goal is to simplify the legal process so our clients can focus on recovery. We handle the legal and insurance issues while our clients concentrate on getting the medical treatment they need.

Our office is located in Aurora, Colorado, and we represent injured clients throughout the Denver Metro Area, including Denver, Arapahoe, Douglas, Adams, and Jefferson County.

If you were injured in a crash, you can request a free consultation with an experienced Colorado car accident lawyer. We handle personal injury cases on a contingency fee basis, meaning you do not pay attorney fees unless we recover compensation for you.