Expert: Anne - 6/8/2010

Question
I live in Hawaii.  I had an accident in Alaska.  My auto insurance paid all my medical bills (approx $5000).  The other drivers insurance wants to give me a $7000 settlement.  Do I need to reimburse my auto insurance for the medical bills out of this settlement?  I really don't want to involve a lawyer and am quite happy with their offer, unless I have to give it to my auto insurance company.

Answer
Hello Roseann,

I know you don't want to get a lawyer involved, but it is prudent that you seek local legal advice. At least, ask an attorney if your insurance company has "subrogation of rights" in Hawaii or Alaska.

Generally speaking, you would have to pay the money back to your insurance company, please see:

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

It's likely that Hawaii and Alaska require this as this is the majority rule in the U.S. Montana and Arizona allow you to keep the settlement, but the other states most likely will not.

Contact an attorney to make sure, and of course, don't settle until you know for sure.

Good Luck
Anne
http://www.quirogalawoffice.com/