Subrogation Clause

Published: | Updated: December 16, 2017

Definition - What does Subrogation Clause mean?

A subrogation clause is a common clause in insurance policies that states that the insured gives their insurance company the right to sue a third party for insured losses on their behalf. This way, the insurance company a means to recover the claim paid to the insured for the loss. Generally, the process all happens behind the scenes without your involvement.

Insuranceopedia explains Subrogation Clause

For example, if a third party causes an accident that totals your car, your insurance company compensates you for the loss and receives the right to sue the at-fault party on your behalf. Some companies reimburse your deductible depending on the amount won in the claim.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.