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.


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