← Vocabulary Explorer

Subrogation

What it means
The process where your insurer pays your covered claim, then seeks repayment from the party who was legally responsible for the loss.
Tennessee example
Your insurer pays to fix your car after a Memphis red-light crash, then pursues the at-fault driver's insurer to recover what it paid.
Why it hits your wallet
Subrogation can affect deductibles being reimbursed and keeps claim costs from sticking solely to the wrong party's insurer.

You may be asked to cooperate with your insurer’s subrogation effort — statements, documents, not signing away recovery rights carelessly. It’s a back-office word with front-seat wallet effects when your deductible might come back.