Nevadans are generally a hardy lot. Whether it is the old frontier mind-set or just a byproduct of the harsh, but beautiful, environment, Nevada residents tend remain stoic. However, dealing with an insurance company after a serious car accident can have a detrimental effect on even the calmest individual.
Some might think that once they manage to get their payments from the insurance company that the matter is over. Unfortunate, that is not always the case.
One reason is the legal concept of "subrogation." Subrogation is a means by which the insurance company inserts itself into any potential claim the injured individual may have against the person who caused the car accident. The company places itself, in legal terms, in the place of the injured person.
The basic idea behind subrogation is that an accident victim should not get a windfall by being paid twice for the same injury (e.g., by both the insurance company and the negligent party). However, in practice, it can be a problem for accident victims. The insurance company may request repayment of what it paid on the policy from any settlement proceeds, which may dramatically cut in to the accident victim's needed compensation. The company might also insert itself into any settlement negotiations to protect its subrogation rights, complicating the process of "getting to yes."
Nevada car accident victims need to be aware of the possibility of insurance company subrogation, and realize they may have some rights. Further, any potential subrogation should be taken into account, while assessing settlement offers, so as to ensure the victim comes as close to being made whole as possible.