"Subrogation," or "subro" for short, refers to the right your insurance company holds under your policy — after they've paid a covered claim — to request reimbursement from the at-fault party. This reimbursement often comes from the at-fault party's insurance company. November 10, 2023. Subrogation is the process by which your insurance company seeks financial reimbursement for claims it paid out but wasn’t financially responsible for. For example, if you Essentially, subrogation is the insurer's right to recoup its losses after paying a claim. The principle of subrogation serves two main purposes. Firstly, it ensures that the insured doesn't recover more than the actual amount of the loss – either from the insurer, the party at fault, or both. A waiver of subrogation is an insurance policy endorsement that allows a policyholder to waive the right of allowing their insurance company to seek financial compensation for a loss from the at-fault insurer's carrier. Simply put, when the process of subrogation is waived, your insurance company is prohibited from going after the at-fault .

what is subrogation in insurance