suborgation

subrogation in insurance. Subrogation is a legal concept that allows an insurance company to pursue a third party that caused an insurance loss to the insured. This process helps the insurance company recover the amount of the claim it paid to the insured.


example

let's say for suppose  you are involved in a car accident that was caused by another driver. You have collision coverage with your insurance company. You file a claim, and your insurance company pays for the repairs to your car, minus your deductible.


Later, your insurance company seeks to recover the amount it paid for your car repairs from the other driver’s insurance company, since the other driver was at fault. If your insurance company successfully recovers the money, it might refund your deductible to you.