Subrogation is a legal doctrine that allows a third party to assume another partys legal right to collect debts or damages. It is a way for an insurance company to recoup expenses from the at-fault drivers insurer after paying for an accident. Subrogation is an equitable remedy that typically arises by operation of law, but can also arise by statute or by agreement. It is a relatively specialized field of law, and its doctrinal basis in a particular jurisdiction may vary from that in other jurisdictions, depending upon the extent to which equity remains a distinct body of law in that jurisdiction.

Subrogation typically arises in three-party situations, and some common examples of subrogation include:

• Indemnity insurance: An indemnity insurer may be entitled to be subrogated to the rights of insured as against a third party who is responsible for the damage to the insured.
• Car insurance: If you have an insurance claim, subrogation allows your insurer to recoup costs (medical payments, repairs, etc.), including your deductible, from the at-fault drivers insurance company, if the accident wasnt your fault.

During subrogation, the policyholder doesnt have to do much, as subrogation generally happens behind the scenes with insurance companies determining who pays for what. However, it is important to notify your insurer if you intend to agree to a settlement with the at-fault person or their insurance company, as this ensures you dont risk your companys right to subrogation. A waiver of subrogation is an agreement that prevents your insurance company from acting on your behalf to recoup expenses from the at-fault party.