• Subrogation is a term that describes the legal right of most insurance companies to legally pursue a third party that has caused insurance loss to an insured person.

  • Typically, in most cases of subrogation, the individual’s insurance company pays its customer’s claim directly and then claims the other party’s insurance company.
  • Subrogation is most common in an auto insurance policy, but also occurs in property/casualty and health insurance claims.
  • Subrogation allows the insurer of the guilty party to pay damages to the insurance company of the victim.
  • This insurance company will then reimburse the insured along with the deductibles paid.