Subrogation Claims After an Accident Explained

When an individual is involved in an accident and has insurance, all their losses are compensated by the insurance company. However, if the accident was caused by someone else’s negligence or fault, then the insurance company gets in touch with that individual or their insurance company and recovers the compensation from them. This is known as subrogation.

Drivers usually don’t know much about this process because it’s dealt with by the insurance company. In this blog, let’s briefly examine what subrogation claims are and how the process works.

Process of Subrogation Claims

Subrogation is a legal process that is used by insurance companies to recover the amount of damages sustained by an individual that holds their policy. Laws in the United States provide insurance companies these rights to recover damages from other individuals/organizations so that they don’t have to pay for someone else’s negligence/fault.

How the Subrogation Process Works

The subrogation claims don’t involve the person who has been injured or has suffered losses. It’s entirely done by the insurance company. The other person, who was at fault for the accident, is also not involved if they have an insurance policy. In this scenario, both insurance companies deal with the matter.

Benefits of Subrogation

Subrogation is more beneficial for the insurance provider than the person being compensated. The person who suffered losses due to an accident will be compensated either way, but subrogation claims allow insurance companies to recover money from the person at fault instead of paying their client themselves.

Apart from that, the driver being compensated doesn’t have to involve themselves in any sort of extra documentation, procedures, and hassles. Everything is to be handled by your insurance company.

Waiving Subrogation Claims

A person who has suffered a loss can choose to waive subrogation if they have decided to settle the matter with the at-fault party privately instead of going to court. Insurance companies usually do give the right of waiver of subrogation to their insurance policyholders.

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In any case, having auto insurance is absolutely necessary for individuals who own a car. If you’re planning to get auto insurance for your car in Springfield, Western Mass Auto Insurance can help you!

We are one of the most trusted insurance providers in the area and offer auto insurance policies according to your needs. Furthermore, we also provide commercial auto insurance, home insurance, renter’s insurance, life insurance, and more.

Reach out to us now for further details.