We live in California; My wife's car was hit by an uninsured motorist earlier this year; She sustained physical injuries and her car was totalled. Auto insurance's collision coverage paid for damages to the totalled car but not for any medical expenses (since we didn't take medical coverage under auto policy).
Our (separate) medical insurance paid for eligible medical expenses. However, their retained subrogation agency has sent several letters asserting their rights to any payments available under uninsured motorist coverage. The Sereboff v. Mid-Atlantic 2006 Supreme Court decision has been cited in correspondence as a basis for this claim.
Since the auto insurer paid for no medical benefits, can medical insurance subrogation lay claim to any non-medical auto insurance benefits (collision coverage, UM, etc.?)
If so, what would be the injured party's (our) motivation to file an uninsured motorist claim for pain and suffering, if some or all money would be recoverable by the medical insurer?
Any advice or sharing of direct experience with this situation would be highly appreciated.