For Consumers

What is subrogation?

When you file a claim, your insurer can try to recover costs from the person responsible for your injury or property damage. This is known as subrogation.

For example:

  • Your insurance company pays your doctor for your treatment following an auto accident that someone else caused.
  • Legally, your company can seek reimbursement from the at-fault person, or his or her insurance company.

Recovering your deductible

If you paid a deductible, your company must include your deductible in its subrogation demand to the at-fault party.

If the accident investigation reveals that you're partially at fault, then you'll only recover a percentage of your deductible.

For example:

If you're 20% at fault for an accident, then you can only recover 80% of your deductible:

  • Deductible you paid: $500.
  • Percentage you're at fault for accident: 20%.
  • Portion of deductible you can recover: $400.

Your obligations to your insurer

During the subrogation process, your insurance company expects your cooperation. Notify your insurer if you intend to agree to a settlement with the at-fault person or their insurance company. Notifying them in advance ensures you don't risk your company’s right to subrogation.

These obligations shouldn't interfere with receiving your benefits and full payment for the injury and damages you suffered.