Understanding Auto Insurance Subrogation

Auto insurance subrogation is something that occurs after most accidents. Suppose you are in an accident that is not your fault. Your car has some damages, and you also have some injuries that need to be tended to. Your insurance will surely cover you, but it should be the party who was at fault who should be liable for the damages and injury. Your insurance company will realize this, and they will go after the other insurance agency to get reimbursed for their payments to you. This is called subrogation. This happens after your insurance pays for your bills, and now needs to be recouped for their payments. It is totally in their right to pursue this course of action since the other party is at fault. What really happens is that the insurance company sues on your behalf to get their money back. You are not involved in the lawsuit at all, but in essence they are acting for you. Often times, you will even be eligible to get your deductible back if you paid it for your accident. Since the accident is not your fault, the companies often try to get that into the settlement as well. Subrogation also can be against your own policies. If you have a medical bill, your car insurance company may ask that your own health insurance pick that up. However, the car insurance company will pay it at first, and seek the reimbursement later. Subrogation happens a lot, but you do not have to be tied up in all the paperwork that comes with the process since they are acting for you.