Understanding Subrogation in Arizona Car Accident Cases

Car accident cases can feel overwhelming enough without legal jargon. One of the terms you may hear from your insurance company is “subrogation.” While it sounds complicated, subrogation is simply the process where your insurance company tries to get reimbursed after paying out on your behalf.

At Big Auto Accident Attorneys, we help clients across Arizona understand every part of the claims process — including subrogation. Here’s what it means, why it matters, and how it could affect your settlement.

What Is Subrogation?

In plain terms, subrogation is your insurance company’s right to step into your shoes and pursue repayment from the at-fault driver (or their insurer) after paying your claim.

For example:

• You’re injured in a crash on I-10 in Phoenix.
  
• Your health insurer pays your hospital bills.
  
• Later, when you receive a settlement from the at-fault driver’s insurer, your health insurance company may seek repayment for what it already covered.
  

This prevents a “double recovery” — you can’t collect money twice for the same bills.

How Subrogation Works in Arizona Car Accident Claims

Subrogation can come into play in several ways:

1. Health InsuranceIf your health insurance pays accident-related medical bills, they may assert a lien on your settlement.
   
2. Auto Insurance (Collision Coverage)If your insurer pays for vehicle repairs, they may pursue the other driver’s insurer for reimbursement.
   
3. Medical Payments Coverage (MedPay)If you have MedPay and it covers expenses, your insurer may seek repayment once you recover damages from the negligent driver.
   

Arizona’s “Made Whole” Doctrine

Arizona follows the “made whole” doctrine. This means your insurer can only recover money through subrogation if you have been fully compensated for your losses.

If your settlement isn’t enough to cover all damages (medical bills, lost wages, pain and suffering), your insurer may be limited in what they can take back.

Why Subrogation Matters to Accident Victims

Subrogation can significantly impact how much money you actually keep from your settlement. Without legal guidance, you could:

• End up repaying more than necessary.
  
• Lose out on funds meant for future care.
  
• Struggle with multiple insurers demanding reimbursement.
  

An experienced attorney can negotiate reductions on liens and ensure your compensation is protected.

Example: Subrogation in Action

Imagine you’re hit by a distracted driver on Loop 101 in Scottsdale. Your medical bills total $75,000.

• Your health insurance pays $50,000.
  
• The at-fault driver’s insurance eventually pays a settlement of $100,000.
  
• Without legal help, your insurer could demand repayment of the full $50,000.
  

But under Arizona law, your attorney may negotiate to reduce or eliminate that repayment if you weren’t fully compensated for pain, suffering, or long-term losses.

How to Protect Yourself During Subrogation

• Hire an experienced accident attorney. We can negotiate with insurers to reduce liens.
  
• Keep detailed medical and expense records. These prove your full damages.
  
• Don’t accept a settlement too quickly. Rushed settlements often don’t account for future costs, leaving you vulnerable to subrogation claims.
  

Why You Need Big Auto Accident Attorneys

At Big Auto Accident Attorneys, we understand how subrogation works — and how insurers use it to cut into your recovery. We:

• Review all insurance policies for subrogation rights.
  
• Challenge improper or excessive reimbursement claims.
  
• Negotiate aggressively to maximize what stays in your pocket.
  
• Protect you from being shortchanged by your own insurer.
  

Contact Big Auto Accident Attorneys

Subrogation may sound like an insurance technicality, but it can make a huge difference in your recovery after a crash. Don’t let insurers take more than they should.

Call Big Auto Accident Attorneys in Arizona today for a free consultation. We’ll fight to protect your rights, minimize subrogation claims, and maximize your compensation.

Confused about subrogation? Contact Big Auto now — we’re available 24/7, and you pay nothing unless we win.

Content reviewed by managing attorney, Nic Edgson. Nic has been an Arizona-licensed lawyer for more than a decade and focuses his law practice on helping people seriously injured in car accidents and truck accidents. He has represented thousands of clients and recovered more than $50 Million Dollars fighting for their injuries and medical bills. Throughout his legal career, Nic has helped those injured through some of the most difficult times in their lives.