In most situations you must reimburse your insurance for medical bills and other benefits paid on your behalf if you collect on a personal injury claim from the third-party who was at fault.
Personal injury attorney fees are contingent on the outcome – you do not owe the personal injury attorney a fee unless the case is successfully resolved. Still, in the end the fees come from your settlement money. And, costs can up to a lot of money, too – especially if the case is litigated.
Meanwhile, your insurance company benefits from the efforts of the personal injury attorney who has been working on your behalf. Your insurance company gets paid out of the same personal injury settlement. It is only fair that your insurance company also contribute to the attorney fees and the costs. Under most circumstances they do have to.
In Washington this rule was established in a case called Mahler.
Be sure to ask any personal injury attorney about Mahler and and whether it – or other similar rules – apply in your case.
Be sure to also ask what happens to the money. Personal injury attorneys have different fee agreements with different terms.
Contact us for more information.