What Is Subrogation?

What is subrogation, and why is it so important? In the insurance world, subrogation is the right that insurance companies have to collect money from the at-fault driver or their company for the damages in an accident. Even though subrogation is not exclusive to auto insurance companies, it is more commonly used by them.

Understanding the Meaning of Subrogation

To better understand what subrogation means, we are going to look at an example:

Let’s suppose that you are driving through your city and someone changes into your lane without looking and wrecks into you. You did nothing wrong, yet your vehicle has been damaged. After paying to repair your vehicle, your insurance company will subrogate with the at-fault driver's carrier to collect the costs of the repairs.

This is a normal practice for car insurance companies and usually requires little involvement from you.

The Last Step in the Claims Process

Generally, subrogation is the last step in the claims process. If one or both companies decide to go appeal the subrogation, by law, they must inform the insured individuals. This is done to let you know that your deductible may not be returned to you unless or until it is collected from the other carrier.

As an individual insured by Infinity, you can take comfort in knowing that, in the event of an accident, our claims reps are trained to handle everything.

If you don't have auto insurance, you should know that it is required in most states. You can get a quote that fits your needs and your budget by calling an agent at 1-800-INFINITY or through our website.

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