Liberty Mutual does not disclose how long subrogation usually takes, since it varies by state and incident. Across the industry, subrogation takes six months, on average, though it can take longer for severe accidents, especially those involving injuries or disputed fault.
Liberty Mutual subrogation is the process through which the company tries to recover money it paid for a claim from the at-fault driver’s insurance provider. If Liberty Mutual subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.
Factors Affecting How Long Liberty Mutual Subrogation Takes
State laws: Most states require claims to be paid within 25-45 days, though some allow up to 75 days or do not have a specific timeframe.
The complexity of a claim: Subrogation after a serious, multi-vehicle accident generally takes longer than it would for a minor crash.
Whether there are injuries: Accidents involving injuries take longer to subrogate than wrecks that only result in property damage.
Fault determination: Subrogation will go faster if fault is discovered or admitted quickly, whereas disputes over fault can cause delays.
For more information, check out WalletHub’s guide to subrogation.
An example of subrogation is when a car insurance company pays out a claim to a policyholder before fault is determined and then attempts to recover their costs from the other driver. Subrogation is the legal process by which insurers receive compensation from an at-fault party. Subrogation also happens with business/general-liability insurance.… read full answer
Example of Subrogation in Car Insurance
Driver A hits Driver B, who did nothing wrong. Driver B files a claim with her own collision insurance, pays her deductible, and receives a check for the covered amount. Since Driver A was at fault, Driver B’s insurer begins subrogation with Driver A’s insurer in order to recover money equivalent to the amount of the claim and deductible.
In this scenario, fault might take weeks or months to determine, depending on whether Driver A admits wrongdoing. However, Driver B benefits from subrogation because she can receive a claim payout immediately, without waiting for Driver A’s insurance company to pay for the damage once fault is eventually decided.
Policyholders generally are not directly involved with subrogation, since the process usually takes place between insurance companies. For more information, check out WalletHub’s guide to subrogation.
No, you do not have to pay subrogation if you have car insurance. Subrogation is when an insurance company recovers money that they paid out in a claim when their policyholder was not at fault, and if the drivers involved are insured, the process of subrogation will take place between their insurance companies. If the at-fault driver was uninsured, however, the other driver’s insurance company might attempt to make them pay for the damage out of pocket through the subrogation process.… read full answer
In other words, the only time you might need to pay as a result of subrogation is when you don’t have enough insurance coverage. And even then, it depends on whether the other driver’s insurer takes legal action.
Subrogation Payment Example
Driver A rear ends Driver B. Driver B files a claim with their own collision insurance, pays their deductible, and receives a payout from their own insurance company, Insurer B.
Insurer B doesn’t want to pay for the damage caused by someone else, so they begin the process of subrogation with Driver A’s insurance company to recover the deductible and claim amount.
How the Subrogation Process Works
If you receive a letter of subrogation from another insurer, you should immediately let your own insurance company know. Car insurance companies have lawyers, subrogation adjusters, and other experts who will handle the demand and let you know if they need any information from you.
If you do not have insurance, a letter of subrogation is a sign that you might need to hire a lawyer. In this case, the other driver’s insurer will likely pursue a settlement or even litigation against you. Individual cases vary, so legal representation can help you determine whether you need to pay subrogation.
For more information, check out WalletHub’s guide to subrogation.
Yes, Liberty Mutual insurance rates are competitive for some drivers, including teens, college students, and military personnel. Liberty Mutual car insurance costs an average of $879 annually, or $73 per month.
Liberty Mutual’s car insurance rates are based on your driving record and experience, along with factors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as do your eligibility for discounts.… read full answer
Sample Liberty Mutual Car Insurance Rates
Average Annual Cost of Minimum Coverage
These sample quotes are representative of Liberty Mutual’s insurance prices, but individual results will vary. To learn more about how we obtained these sample quotes, check out the methodology section of our complete Liberty Mutual car insurance review.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.