Subrogation definition
Subrogation mainly happens when your car insurance company charge back other insurance companies or the person you had an accident with. Let take an example, you are travelling and was involved in a car accident which was not your fault. You file for a claim which your car insurance paid. Later, your vehicle insurance company noticed that the car accident you are involved in is not your fault and they person you had the accident with also have car insurance coverage. Your car insurance company then approach the car owner you’re involved in accident with for reimbursement. That is called subrogation. The reverse can also happen when the accident was your fault. If the accident is partially your fault, you will pay a portion of the claim. I will write a full article on subrogation and its clause to clearly explain how it works so check for it in the article section. I do hope this gives you idea of what subrogation is.
