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What you need to know about subrogation

On Behalf of | Aug 9, 2022 | INSURANCE LAW - Insurance Law |

One of the most effective ways to exit a legal battle in Washington is to have access to the process of subrogation. This is a legal action that occurs when an insurer exercises their right to take your place. The usual reason for doing so will be to have a better chance of recouping the money that they have already had to pay out on an existing claim.

Understanding the purpose of subrogation

Subrogation is defined under the terms of insurance law as the substitution of one person or group for another. In the case of an insurance claim, your insurance company will agree to take your place. They will do so for the purpose of assuming your legal right to pursue a claim against another person or entity.

The process begins when your insurer pays for the losses that are associated with your personal claim. You have already filed your claim and received the payment. Your insurer can then choose to pursue the party that caused the damages. It may decide to sue this party in order to recover what it paid out.

A common example of subrogation

Subrogation can take place in a wide variety of legal settings. One of the most common will be after a vehicle accident. If you own a vehicle that is hit by a car, you can file a claim against the driver. The insurance company will pay you for the damages. They can then use subrogation to get their money back from the at-fault motorist.