Subrogation After Car Accident Explained

When you get involved in a car crash, your insurance provider reimburses all the expenses according to your policy coverage. However, if an accident occurs due to another driver’s fault, your insurance company connects with that of the other driver to recover payout or compensate for the loss—a process referred to as subrogation.
Drivers typically aren’t aware of this process, because it’s held entirely by their insurance company. But it can help if you’re aware of the subrogation process’s basics in case someone falsely accuses you of causing the accident, and you must renunciate the subrogation claim.
The Subrogation Process — What Is It?
It’s a legal claiming process used, for instance, policies, including auto insurance, homeowners insurance, medical insurance, and others. It’s referred to as the right of an insurance provider to seek compensation for a loss from another entity liable for the damages.
The subrogation process allows for easier settlement after significant losses incurred by insurance policyholders.
How Does It Work?
Though the term “subrogation” may sound complicated, it can be better understood with real-life examples. Let’s look at one:
Assume that a distracted driver exceeding the speed limit hits your car. Your car is in bad condition, so you get it repaired immediately. Your insurance provider reimburses the cost of repairs minus your deductible amount. After investigation, your insurance company finds out that you were not at-fault for the accident. They connect with the insurance provider of the driver at-fault to recoup the cost of your losses.
In this situation, you are not legally authorized to file a subrogation claim to seek reimbursement from the at-fault driver’s policy provider. Therefore, your insurance company files a claim on your behalf in the name of subrogation.
How Subrogation Benefits You?

The primary advantage of subrogation is that policyholders are nowhere involved in the legal steps taken in recovering the payout from the faulty entity. Your insurance company handles everything, so you’re far from the hassle of documentation and other legal work. Evidence proving the other party at fault is all you need for a faster and hassle-free payout from your subrogation claim.
Waiving of Subrogation
You can sign a waiver of subrogation claim if you don’t want your insurance company to handle the matters on their end. Drivers typically consider a subrogation waiver when they are looking to settle with the at-fault driver privately rather than take matters to court. You can also use a subrogation waiver if the defaulting party is someone you know. While most insurance companies allow policyholders to sign a waiver of subrogation claim with an additional fee, some don’t allow it. Make sure to inquire about your insurance provider about the consequences of signing a subrogation waiver and the associated charges.
For more information about a different aspect of auto insurance, get in touch with our expert car insurance consultants in Indian Orchard. At Western Mass Auto Insurance, our curbside service is helping clients find cheap car insurance quotes in Indian Orchard within 15 minutes from the safety of their cars amid the pandemic.
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