What is Subrogation?
Insurance glossary entry on BeCovered.ai for the term "Subrogation": Insurer's right to pursue a third party that caused the loss after paying your claim. Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
Insurer's right to pursue a third party that caused the loss after paying your claim.
Understanding Subrogation
Health plans subrogate against at-fault drivers; auto carriers subrogate against negligent parties. Waivers of subrogation in contracts require endorsements.
Examples
- Your carrier pays collision then sues at-fault driver's insurer for reimbursement.
- Health plan seeks repayment from auto BI settlement—coordination of benefits issues.
Common Questions About Subrogation
Do I keep recovery if subrogation succeeds?
Often insurer recoups deductible first per contract—state rules vary for uninsured motorist contexts.
Waiver of subrogation cost?
Endorsement fees apply—common in construction contracts; failure to obtain breaches contract.
Related Insurance Types
Related Terms
Claim
A formal request to your insurance company for payment or coverage for a loss or policy event.
Liability
Legal responsibility for causing harm or damage to another person or their property.
Premium
The amount you pay to your insurance company for your coverage, typically monthly or annually.
Exclusion
Specific situations, conditions, or types of damage that your insurance policy does not cover.