Subrogation
Definition
The process where your insurance company, after paying your claim, seeks reimbursement from the at-fault driver's insurer. It can also mean your health insurer wants to be repaid from your settlement.
Real-World MVA Example
Your health insurer paid $50,000 for your accident surgeries. When you settle with the at-fault driver for $200,000, your health insurer exercises subrogation rights to recoup their $50,000.
Related Terms in Insurance & Claims
Adjuster
An insurance company employee who investigates your claim, evaluates the damage, and decides how much the insurer should pay. Adjusters work for the insurance company, not for you.
At-Fault State
A state where the driver who caused the accident is financially responsible for the other party's injuries and damages. Most states follow this system.
Bad Faith
When an insurance company unreasonably denies, delays, or undervalues your legitimate claim. Bad faith can give you grounds to sue the insurer for additional damages.
Collision Coverage
An optional part of your own auto insurance policy that pays for repairs to your vehicle after a crash, regardless of who was at fault.
Comprehensive Coverage
An optional insurance coverage that pays for damage to your vehicle from non-collision events like theft, vandalism, hail, flooding, or hitting an animal.
First-Party Claim
A claim you file with your own insurance company under your own policy, such as collision coverage, MedPay, or uninsured motorist coverage.
NEED LEGAL HELP?
Understanding the terms is the first step. Get connected with a car accident attorney for a free case review.
Free Case Review