Expert: Anne - 3/6/2009

Question
I was in an accident last year that was not my fault.  I needed physical therapy which the other persons insurance was going to pay for. The people at the therapy place told me I could pay them with my PIP insurance from my own insurance & when the other parties insurance settled with me on my claim they would pay me this money back.  However, when they settled, they subtracted that amount from the claim and said they didn't have to give me that money in the settlement.  Do you know if this is correct.

Answer
Hello Debby,

Yes, they do not have to give you the money of your medical bills. Let me explain. Usually, your insurance company has a right of recovery for damages you suffered but were caused by a third party (the at fault person).

Your insurance company “steps” on your shoes and goes after the party that cause your medical bills. You are require to allow your insurance company to do this under your policy. See:

http://www.auto-insurance-claim-advice.com/Subrogation-of-Rights.html

Since your insurance company was probably aware that were about to settle or that an insurance company was going to settle with you, they likely put a lien against your settlement (for the medical bills). If a lien exits, the money must be deducted right from the top of your settlement and paid directly to them.

I hope this clears the process a little bit.

Good Luck
Anne
http://www.auto-insurance-claim-advice.com/