{"id":352950,"date":"2016-04-04T10:46:31","date_gmt":"2016-04-04T15:46:31","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/injury\/accident-injury-law\/insurance-law-what-is-a-subrogation-action.html"},"modified":"2023-11-07T09:40:47","modified_gmt":"2023-11-07T14:40:47","slug":"insurance-law-what-is-a-subrogation-action","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/insurance-law-what-is-a-subrogation-action.html","title":{"rendered":"Insurance Law: What Is a Subrogation Action?"},"content":{"rendered":"\n
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Insurance Law: What Is a Subrogation Action?<\/h1>\n\n
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\n By Ty McDuffey, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Subrogation<\/span> is a process in insurance law that can arise when dealing with an insurance claim<\/span> or an auto accident<\/span>. Subrogation<\/span> allows an insurance company<\/span> to reimburse the money it already paid in a claim before someone else was found liable for those costs.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Insurance law<\/span> can be confusing. But understanding how subrogation<\/span> impacts policyholders<\/span> and insurance companies<\/span> can help you protect your legal rights<\/span>.<\/p>\n

Dealing with an accident or injury can be a hefty mental and financial burden. Let a personal injury lawyer<\/a> navigate these complicated details for you. Your attorney can explain how the process works and make sure you ultimately recover a fair amount of compensation.<\/p>\n

What Is Subrogation in Insurance<\/span>?<\/h2>\n

In insurance terms,\u00a0subrogation\u00a0is a legal action that an insurance company (the insurance carrier) takes to recoup the funds paid out in a claim from the at-fault party. This allows the insurer to adopt the legal right of the injured party to seek reimbursement, preventing unjust enrichment.<\/p>\n

An Example of Subrogation in Action<\/h2>\n

Suppose you’re involved in a\u00a0car accident<\/a>\u00a0caused by a driver who runs a red light. You’ll need to file an accident claim with your own insurance company.<\/p>\n

The auto insurance company settles your insurance claim. They pay out your medical bills and cover property damage, but the at-fault driver’s insurance\u00a0should ideally cover these costs. This is because they are accountable for the accident. The subrogation action arises when your insurance company recovers the full amount paid to you from the at-fault driver’s insurance company.<\/p>\n

The Subrogation Process<\/h2>\n

The subrogation process begins once your insurance company has settled your claim. This process is usually initiated by your insurance carrier. It involves a series of steps designed to recoup the costs they’ve incurred as a result of your claim.<\/p>\n

Determining Liability for Injury Costs<\/h3>\n

The first step involves identifying the at-fault party<\/a>. This could be:<\/p>\n