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Do I Have to Repay My Insurance After a Car Accident?

After a car accident, it might seem like once the insurance company pays your medical bills, that’s it. But most people are surprised to learn that, with most policies, the insurance company has a right to seek reimbursement for the money it spent. Many of our clients ask, “Do I have to repay my insurance after a car accident?”, and, in general, the answer is yes… if you receive a settlement in your car accident injury claim.

In this article, we’ll discuss whether you have to repay your insurance company for covering your medical bills after a car accident. We’ll also share why hiring an experienced car accident lawyer can actually save you money in the end.

Do I Have to Repay the Insurance Company for Medical Expenses After a Car Accident?

After a car accident, you are generally required to reimburse the insurance company for medical expenses out of any potential settlement amount.Based on the concept of subrogation, most insurance companies, as well as Medicare and state Medicaid agencies, are entitled to seek reimbursement for the money they spend on your medical care after a car accident.

However, in most cases, the right of subrogation only exists in the event that you are awarded a settlement or jury award in your car accident case.

The money to reimburse the insurance company is taken out of your settlement.

Medical Liens

The process of reimbursing the insurance company for your medical expenses after a car accident is relatively straightforward. In most cases, after the insurance company, Medicare, or state Medicaid agency pays your medical bills, they will file a medical lien.

A medical lien is basically a claim to some of the money awarded in a future settlement or jury verdict. It essentially means that you are obligated to reimburse the insurance company for their expenses if and when you receive compensation for your injuries.

Lowering Your Medical Liens

An experienced personal injury lawyer can often help lower your medical liens to keep more of your settlement in your pocket.One of the advantages of hiring an experienced car accident lawyer is that he or she can help negotiate with the insurance company or medical providers to lower the amount of your medical liens.

By lowering the amount you are required to reimburse the insurance company, you can keep more money from your settlement in your pocket.

Have You Been Injured in a North Carolina Car Accident?

If you’ve been injured in a North Carolina car accident due to someone else’s negligence, we would love to help you get justice if we can.

We handle car accident injury cases across the entire state, including in:

The consultation is free and we can serve you 100% virtually by phone, email, text or video conference. If you prefer us to come directly to you, we can do that, too. But there is no in-person visit required to get started on your case.

Let’s review your claim. In most cases, if you receive a settlement or jury award, you are responsible for reimbursing your insurance company for medical expenses, but we can help try to lower the amount you owe.

Justice Counts for those injured in car accidents due to others’ negligence.