What Is Subrogation?
Subrogation is an insurer's right to seek repayment from the party responsible for a loss after the insurer pays its policyholder's covered claim. In a personal injury case, subrogation may involve health insurance, medical-payment coverage, or another insurer seeking reimbursement from a settlement or judgment. The right depends on the policy, payment records, and applicable law.
Quick Facts About Subrogation
Category
Insurance recovery right
Used for
Recovering payments after a covered loss
Common confusion
A subrogation claim is not the injury claim itself
Also called
Right of Subrogation, reimbursement claim
Often discussed with
Insurance Bad Faith Claims
Key Takeaways About Subrogation
- Subrogation shifts recovery efforts toward the party responsible for the loss.
- A reimbursement claim can affect the amount remaining from a settlement.
- Subrogation is not the same as the injured person's damages claim.
How Subrogation Works
Subrogation usually begins after an insurer pays a covered expense connected to an accident or other loss. The insurer then reviews who caused the loss and whether another policy, person, or business may owe that expense. The insurer may assert a reimbursement claim against money recovered from the responsible party.
Related glossary terms: Bad Faith, Comparative Negligence, Joint and Several Liability.
In a personal injury matter, the claimed amount must be tied to actual payments and the applicable policy terms. A health insurer may seek repayment for accident-related treatment after a settlement. A liability insurer may also pursue recovery when another party's coverage should have paid. The parties may review payment records, policy language, responsibility for the incident, and any reduction that applies to the asserted claim.
From the Atlanta Auto Law team
When we handle an insurance bad faith claim, we review whether the insurer identified and handled subrogation consistently with the policy and the claim record. We examine payment information, communications, and settlement treatment. We also separate a valid reimbursement issue from an insurer's unsupported demand or delay.
Subrogation in Practice: A Real-World Example
A driver's health insurer pays accident-related treatment after a collision. If the injured person later recovers from the at-fault driver's insurer, the health insurer may seek repayment from that recovery under its policy and applicable law.
Related Services
Related Terms
Bad Faith
Bad Faith is an insurer’s dishonest, unfair, or unreasonable handling of a valid insurance claim. The…
Comparative Negligence
Comparative Negligence is a legal rule that assigns each party a share of responsibility for an…
Joint and Several Liability
Joint and Several Liability is a legal rule that can make each responsible party answerable for…
Personal Injury Protection
Personal Injury Protection is optional, no-fault auto insurance coverage that may help pay an insured person's…
Atlanta Auto Law
Have Questions About Subrogation?
Contact Atlanta Auto Law for practical guidance on Subrogation and related personal injury lawer acs work in Decatur.