Following your injury, your automobile insurance and/or your health insurance carrier may have paid medical bills on your behalf. And now you are in a position to settle with the opposing insurance company for your bodily injury claim (which will include payment to you for your medical bills incurred). When you eventually settle your bodily injury claim with the responsible insurance company, you are responsible to pay back your auto insurance company and/or health insurance company the amount they paid towards your medical bills. Insurance companies have a legal right to be paid back for the amount they paid towards your medical bills. This obligation to pay back your insurance companies is referred to as “subrogation” or right to be paid back.
So, you’ve just been injured in a motor vehicle accident that wasn’t your fault and medical bills are mounting. Does the other party’s automobile insurance have to pay your medical bills right away? The answer is actually no. At least not until you are able to get a settlement or a judgment against the other party making them legally liable to pay the bills. Even if the accident was clearly not your fault – because any party may deny they are at fault for causing an accident or even that you were injured – they are not automatically legally liable to pay your medical bills.