What is subrogation

Question

What is subrogation

Accepted Answer

Subrogation is the process by which an insurance company seeks reimbursement from the party at fault for a claim it has already paid out.

Subrogation allows insurance companies to recover costs from responsible parties.
It is commonly used in cases where a third party is liable for damages covered by an insurance policy.
Subrogation can help prevent policyholders from double-dipping by receiving payments from both their insurance company and the responsible party.
Examples include a car insurance company seeking reimbursement from a driver who caused an accident, or a health insurance company seeking reimbursement from a negligent party in a personal injury case.