Subrogation
When an insurer pays you, then seeks repayment from the party that caused the loss.
Plain definition
Subrogation lets your insurer, after paying a covered claim, pursue the at-fault person or their insurer to recover what it paid (and sometimes your deductible). Your policy typically requires cooperation; settlements can affect how much you get back.
Why it matters
Subrogation explains why your carrier cares about fault after it already paid you. Waiving subrogation rights without approval can create coverage problems.
Example
Another driver hits you; your collision coverage fixes your car, then your insurer subrogates against the other carrier for reimbursement.
Common misunderstanding
Receiving a claim payment does not always mean the matter is closed. Subrogation can continue for months and may affect future premiums if fault records change.
Policy language always controls. This is educational content, not advice. See our disclaimer.