What Is Subrogation?

Subrogation refers to the process an insurance company uses to seek reimbursement from the responsible party for a claim it has already paid.

Subrogation matters to you if:

  • You have a covered loss, and you submit a claim to your insurance company, but another party is actually responsible for all or part of the damages. For example, you have a car accident and but the other driver caused the accident, not you.

In an effort to speed up the process, your insurance company may pay your claim, and then seek reimbursement from the other party. This would depend on the circumstances surrounding the loss, the laws in your state, and your policy provisions.

If an insurance company does decide to pursue subrogation, however, the law requires that they inform you that they are doing it. This is important to you because they must try to recover the cost of your deductible as part of the process, and refund it to you if they do recover it.

Generally, your insurance policy will require you to cooperate with any attempts by the insurer to pursue subrogation.

If you or a loved one has been in an accident due to the negligence of another, protect your rights. Our experienced personal injury attorneys are here to help. Call us today at 704-333-0885 or visit one of our convenient office locations in Charlotte, Gastonia, Hickory and Rock Hill, SC.

Written by: Eric Niccolai, Lien & Subrogation Specialist, Campbell & Associates, Attorneys at Law