Pines Salomon Personal Injury Lawyers | October 22, 2025 | California Law
In California, you are not legally required to personally respond to a subrogation letter sent by an insurance company. However, it is strongly recommended that you consult with an experienced San Diego personal injury lawyer before ignoring a subrogation letter.
Ignoring a subrogation letter from an insurance company could result in the company suing you.
What Is a Subrogation Letter in a San Diego Personal Injury Case?
A subrogation letter is a formal notice from an insurance company about its rights. The company is requesting reimbursement for claims it has paid on your behalf following an accident or injury caused by a third party.
The letter should include information about the claims the company paid on your behalf. For example, your health insurance company paid medical bills related to a car accident caused by another driver. The health insurance company wants to recover those costs from the at-fault party or their insurance.
Subrogation clauses are included in most insurance policies. Subrogation allows the insurance company to “step into your shoes” to pursue repayment. This right ensures that the financial responsibility falls on the party responsible for causing the loss.
What To Do if You Receive a Subrogation Letter in San Diego
The steps you take after receiving a subrogation letter can directly impact your personal injury case. Follow these important guidelines:
Don’t Respond on Your Own
Immediately forward the subrogation letter to your San Diego personal injury attorney. Your lawyer is best positioned to handle all communication with the insurance companies and ensure your rights are protected.
Never provide statements or release information without legal guidance.
Understand Insurance Rights and California Law
While California law recognizes the right of insurers to pursue subrogation, there are important consumer protections in place:
- Attorney representation matters: If you have legal counsel, the insurer may only recover up to one-third of your compensation.
- Made Whole Doctrine: Under this doctrine, an insurer can only pursue reimbursement after you have been fully compensated for your losses.
Your attorney will review your policy, explain your rights, and negotiate to reduce the reimbursement amount if possible.
Avoid Harming the Insurer’s Subrogation Rights
Don’t take actions that could interfere with the insurer’s right to reimbursement. For example:
- Settling your claim without notifying your insurer
- Giving contradictory statements about the accident
Doing so may expose you to personal liability for reimbursing the insurer directly.
How a Subrogation Letter Can Affect Your Injury Settlement
A subrogation letter signals that the insurance company will claim a portion of your personal injury settlement. The funds are typically withheld by your attorney to satisfy valid subrogation claims before you receive the remaining compensation.
This process prevents “double recovery” or profiting from bills paid by someone else. For example, if your health insurer paid your accident-related medical bills, the portion of the settlement designated for those expenses is owed to the insurer.
That said, a skilled attorney may be able to reduce the amount the insurer seeks. Personal injury lawyers frequently negotiate these claims, especially when the settlement does not fully compensate the injured person.
Disputing a Subrogation Claim in California
Receiving a subrogation letter does not automatically mean you owe the money. There are legitimate legal defenses, including:
- The insurance company failed to assert its claim before the three-year statute of limitations expired
- The insurer seeks reimbursement for unrelated or inflated expenses
- The insurer cannot prove it paid the claimed amounts
Your attorney will review the subrogation demand against your medical records and policy documents to verify its accuracy.
Seeking Legal Help with a Subrogation Letter in San Diego, CA
Responding to a subrogation letter without legal guidance can put your financial recovery at risk. A San Diego personal injury lawyer can evaluate the letter, protect your settlement, and ensure compliance with California insurance laws.
For more information, contact an experienced personal injury lawyer at Pines Salomon Personal Injury Lawyers to schedule a free initial consultation today.
We proudly serve San Diego County and its surrounding areas:
Pines Salomon Injury Lawyers – San Diego Office
835 5th Avenue #302, San Diego, CA 92101
(858) 551-2090
Available 24/7
Pines Salomon Injury Lawyers – La Jolla Office
4660 La Jolla Village Dr. San Diego, CA 92122
(858) 585-9031
Available 24/7
