If you’re injured in a car crash that’s solely or largely the fault of another driver, their insurance company will likely be compensating you for your expenses and other damages. Kentucky uses what’s called the “pure comparative negligence” rule.
That means the party most at fault compensates the other. However, if the other party bears some responsibility, the amount the party most at fault has to pay is reduced by the percentage of fault of the other party.
For example, say the driver who hit you is determined to be 80% at fault and you to have 20% of the fault for the crash. If the amount of compensation you’re owed is $100,000, they’d only have to pay 80%, or $80,000. This is why it’s important to ensure that a proper investigation is done and you have the necessary evidence for the accurate assignment of fault.
How subrogation works
As long as the other driver has adequate insurance, your own insurer may not have to get involved. However, if the other party’s insurance company is slow-walking the claim and you’ve got medical bills, car repair bills and have to take unpaid time off work, you may be able to get your own insurance company to pay you the amount owed. They’ll then seek reimbursement from the other driver’s insurance company – known as the third-party carrier (TPC). That is called subrogation.
That’s just one reason it pays to have an insurer with a good reputation rather than just settling for the cheapest policy you can find. You might still have to pay your deductible if your insurer subrogates your claim, but you’ll get that money back once they collect from the TPC.
What if the at-fault driver is uninsured or underinsured?
If that’s the case, your own uninsured/underinsured coverage can help. However, that still might not be enough.
It may be necessary to take civil legal action against the driver to cover your economic and non-economic damages. Having experienced legal guidance can help you make the best decisions during a difficult time.