The practice by an insurance company of seeking reimbursement from someone legally responsible for an accident after the insurer has already paid damages on behalf of its insured. Subrogation may be against another driver who was negligent, but it may also be against either party’s medical insurance and used to cover treatment.
If you’re not at fault and your insurer subrogates against someone else or their insurance policy, you’re usually required to sign a subrogation release form that gives your insurer the right to recover funds from the person at fault in the accident or his insurance company. However, your insurer must proceed with your original claim and may not stall in reimbursing you while waiting to receive such funds.
If you’re the one at fault, the other driver’s insurance company may subrogate against you or your insurer to recover the amount you’re responsible for. If you don’t have the money to pay for the damage you caused, you may be able to negotiate the claim and make payments over time until the amount is paid in full. If you don’t have insurance, you may need to contact an attorney for help.