What is an insurance subrogation claim?

An insurance subrogation claim is a legal claim brought by an insurance company against a negligent party for losses incurred by the insurer as a result of paying for damages on behalf of their insured. In California, insurance companies are allowed to seek reimbursement for their losses by bringing a subrogation claim against the negligent party for the same set of damages that the insured person had to pay out. Typically, insurance companies will only pursue subrogation claims when the negligent party has the financial means to pay for the damage. They must also be able to prove that the other party was at fault for the damages incurred. An insurance company may take several factors into consideration when deciding whether to pursue a subrogation claim, such as the amount of the damages and the likelihood of success. The purpose of an insurance subrogation claim is not to enrich the insurer, but rather to recover the amount that the insurance company had to pay out because of the negligent actions of the other party. This allows the insurance company to pass some of the financial responsibility onto the negligent party, instead of bearing the entire cost of the damages themselves. In California, and across the United States, insurance companies have the right to file subrogation claims against negligent parties for the damages that the insured person has to pay out. This helps to protect the rights of both the insurer and the insured by allowing the insurer to recover some of their costs from a negligent party.

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