Subrogation
Plain English Definition: The insurer’s right to pursue a third party for reimbursement after covering a loss.
What Subrogation really means for someone with an insurance policy
Subrogation allows insurers to recover claim payments by suing the responsible party.
Subrogation Real World Examples
- Your insurer sues a negligent driver after paying for your car repairs.
- Health insurers recover costs from liable third parties after covering medical bills.
- Subrogation helps keep premiums lower by reducing insurer losses.