Understanding Subrogation in Auto Insurance Claims

Subrogation is a legal right that allows your auto insurance company to recover money from the party responsible for a loss after it has paid out a claim on your behalf. This typically happens when your insurer pays for your damages and then seeks reimbursement from the at-fault driver’s insurance company.

For example, if another driver causes an accident and your insurer covers your vehicle repairs under your collision coverage, your insurer may later pursue the other driver’s insurer to recover those costs. If successful, your insurer may also recover your deductible and return it to you, depending on the outcome of the process.

This process helps maintain fairness in the insurance system. It allows insurers to shift financial responsibility back to the at-fault party. It also helps keep premiums more stable by reducing the economic impact of claims that were not your fault.

How Subrogation Affects You

As a policyholder, you may not be directly involved in the subrogation process, but it can still affect your experience after a claim. One of the most noticeable ways is through the potential recovery of your deductible. If your insurer can recover the full amount from the at-fault party, you might receive your deductible back. However, this is not guaranteed and depends on the success of the recovery effort.

Sometimes, your insurer may ask for your cooperation during the subrogation process. This could involve providing a statement or documentation related to the accident. Your participation can help support your insurer’s efforts to recover costs, but the insurance companies typically handle the legal and negotiation aspects.

Subrogation can take time. The process involves investigation, communication between insurers and sometimes legal proceedings. While you may have already repaired your vehicle and moved on from the incident, the subrogation process could continue in the background.

Learn More

Contact Providers Insurance to better understand how subrogation could affect your auto insurance claim.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.