How does Florida UM subrogation law work in car accidents?

November 04, 2020

If another driver’s negligence caused the accident, and that driver has insufficient liability insurance coverage, you may look to your own Underinsured Motorist (UM) coverage recover additional damages for your injuries. If you decide to settle your liability claim against the underinsured driver, you must follow the procedure set out in the Florida Statutes which requires you to send written notice of the proposed settlement to the insurer that provides Underinsured Motorist coverage. Notice should be sent by Certified or Registered Mail and must follow the format set forth in Florida Statute Chapter 627. Depending on the circumstances, your insurer may pursue its right of subrogation against the at fault driver, or their insurance company. Because the at-fault driver is responsible for your injuries, your insurance carrier has the right to sue the at-fault driver to recover money you or your insurer have already paid. Before you release the underinsured driver and their insurance company from liability, your UM insurer has a right to be notified of the potential settlement. Once notified, the UM insurer has thirty(30) days to agree to the settlement, thus waiving their right to subrogate, or pay the settlement amount offered by the underinsured driver’s insurance company, in such case your UM carrier retains its right of subrogation or “reimbursement” against the underinsured driver. Failure to follow this procedure can result in a forfeit of your right to pursue a UM claim under your policy.

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