Subrogation in Insurance

Subrogation is a process where your insurer steps into your shoes to recover money they’ve paid out on a claim from another party who’s actually responsible for the loss. 

Think of it as your insurer saying that they’ve got you covered, but the person who caused the mess needs to pay them back.

Imagine this:

Your car is damaged in an accident caused by another driver.
Your insurance company pays for the repairs, but then they go after the at-fault driver (or their insurer) to recover the costs. 

That’s subrogation in action.

How Does Subrogation Affect Your Insurance?

Subrogation is more than a technical term; it impacts your insurance premiums and claims experience.

Here’s how it benefits you:

• Controls Premium Costs: By recovering funds from the at-fault party, insurers offset their expenses, which may help stabilise or reduce your premiums over time.
  
  
• Promotes Fairness: Subrogation ensures the responsible party or their insurer pays for the damage, sparing you and your insurer from bearing the cost.
  
  
• Streamlines Claims: Subrogation allows your insurer to settle your claim promptly and pursue recovery independently, minimising your involvement in the process.

Subrogation is a crucial part of how insurance works to protect you and keep costs fair.

If you’re curious about how subrogation applies to your policy or want to explore insurance options, our team at Tank Insurance can help you. You can also read our blog or free Health Check eBook for more info. 

Reach out to us today for a chat about your insurance needs and let’s make sure you’re covered the right way!