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What is subrogation?

If you have an auto claim, your insurance company may exercise its right to go after the third party that caused the loss by way of a process called subrogation. We'll help you understand what subrogation is and how it works.

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What is subrogation when it comes to car insurance?

Subrogation is when the insurance company of the not-at-fault driver pays for the damages of their insured and then request reimbursement from the insurance company of the at-fault driver. In this case, the not-at-fault driver must have coverages like Collision and Rental Reimbursement to file damages through their own insurance.

Example: You're involved in an accident and the other driver is found at-fault. You have Collision Coverage with a $500 deductible and Rental Reimbursement. You choose to file for damages under your insurance company. Once your insurance company pays for the damages, they request reimbursement for the costs they paid, including your deductible.

What is waiver of subrogation?

A waiver of subrogation is an insurance policy endorsement that allows a policyholder to waive the right of allowing their insurance company to seek financial compensation for a loss from the at-fault insurer's carrier.

Simply put, when the process of subrogation is waived, your insurance company is prohibited from going after the at-fault party's insurance company for reimbursement once the claim has been settled.

How do I challenge a subrogation claim?

If you're in a car accident, found to be at-fault, and have a waiver of subrogation on your auto insurance policy, you have the right to challenge it if you think it's unfair to you or your insurance company.

To challenge a subrogation claim, contact your insurance company and explain why you think subrogation shouldn't be pursued. You can also reach out to the other party's insurer and explain why you think the waiver is unfair. Depending on the situation, the other insurance company may agree to release you from the waiver or compensate you for some of your losses.

How long does subrogation take?

In general, the average subrogation process takes around 6-months. However, depending on the severity of the accident in question, it could take longer.1 2

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Please note: Information presented on this page is intended to be general information about insurance and is not specific to Liberty Mutual policies. Policies and coverages vary by state and insurer. Contact your insurance company to understand specifics regarding your policy and coverages.