Legal Definitions - right of subrogation

The right of subrogation is a legal term that refers to the ability of an insurance company to take over the rights of its insured person after paying out a claim. This means that the insurance company can step into the shoes of the insured person and pursue any legal action or claim that the insured person could have made.

For example, if you are in a car accident and your insurance company pays for the damages, they may have the right of subrogation to sue the other driver for causing the accident and recover the money they paid out to you.

The right of subrogation is important because it allows insurance companies to recover the money they paid out for claims, which helps keep insurance premiums affordable for everyone.