When someone else harms you and you get paid back for the amount spent on your behalf for medical treatment, then the insurance company wants to be reimbursed for the monies it spent on your behalf. In essence, it is willing to insure you for harm you cause to yourself, but if you are harmed by another and money can be collected from that person (third party), the insurance company wants reimbursement.
If you bring an action and recover the funds, the insurance company will almost always take a reduction, called compromising its lien, to reflect the time and expense (attorneys’ fees and costs) involved in recovering these damages. Reductions run from 0 to 80 percent or higher. The higher your comparative fault, the more the reduction as the law requires that the insurance company reduce its right to recovery by a percentage equal to your fault, if any.