Subrogation Claim

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August 27, 2018

Subrogation Claim

Subrogation is the process of one standing in for another.  As it relates to insurance, subrogation is the legal process which transfers authority to an insurance company, allowing them to file a claim against a third party.

The subrogation claim process works along these lines.  In most cases, the actions related to a subrogation claim between the two insurance companies.  Even though the insurance company for the damaged party is not liable, to rectify the situation as quickly as possible, they will most likely work to settle the claim with their customer.

Once they have closed the claim they will seek to be reimbursed.  The At-Fault party is legally responsible and they will now get to the business of getting their money back.  As mentioned earlier, subrogation language in your policy allows the insurance companies to proceed without input.  In most cases, the subrogation process is totally seamless as far as you the customer goes.

In some instances the matters are moved into the courtroom.  At this point, if you are the At-Fault party in an accident, your level of input it matters will most likely increase and you will receive notice of legal action against you.  While most of the actions will still be between the two insurance companies, you could be required to testify among other things.



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