Car Insurance Subrogation

A waiver of subrogation is a legal clause or form that prevents an insurance company from attempting to recover any money from another insurance company or policyholder. In car insurance, a waiver of subrogation usually keeps the not-at-fault driver's insurer from recouping claims payments from an at-fault driver.

Subrogation is the process through which an insurance company tries to recover costs from another party after paying a claim. It takes place between insurance companies, so drivers usually aren't directly involved. For most consumers, subrogation is most relevant in the context of car insurance and home insurance. Subrogation and related waivers are often associated with post-accident settlements.

Many auto insurance policies include provisions telling policyholders not to sign any waiver of subrogation, since it exposes the insurer to more risk. If your policy bans waivers of subrogation but you sign one anyway, you would be violating your insurance contract, and your insurer could legally deny you coverage. In short, it's always a good idea to ask your insurance company before signing a waiver of subrogation.

Waiver of Subrogation Example

Say Driver B ran a red light and hit you when you were driving legally. You need your car repaired soon, but Driver B won't admit fault, so you file a collision claim with your own insurance company and pay your deductible. Then, your insurer begins the process of subrogation, negotiating with Driver B's insurance company to try to replace the money it paid for your claim. You will even get your deductible back if subrogation is successful.

However, Driver B may offer to pay a set sum for the damage if you agree to sign a waiver of subrogation. Signing this waiver would mean forfeiting your right to get any more money from Driver B or his insurance company, regardless of any expenses from the accident that might arise in the future.

An example of subrogation is when a car insurance company pays out a claim to a policyholder, determines that another driver was at fault, and works with that driver's insurer to recover the original payout, plus the policyholder's deductible. Subrogation also happens with business/general-liability insurance. In general, it is the process through which insurers receive refunds from the at-fault party to compensate them for money they paid out in a claim.

Car Insurance Subrogation Example

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.

Mercury 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.

Mercury 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 Mercury subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.

Factors Affecting How Long Mercury 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.

Travelers 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.

Travelers 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 Travelers subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.

Factors Affecting How Long Travelers 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.

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.

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.

Auto-Owners 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.

Auto-Owners 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 Auto-Owners subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.

Factors Affecting How Long Auto-Owners 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.

The General 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.

The General 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 The General subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.

Factors Affecting How Long The General 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.

National General 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.

National General 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 National General subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.

Factors Affecting How Long National General 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.

MetLife 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.

MetLife 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 MetLife subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.

Factors Affecting How Long MetLife 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.

AAA 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.

AAA 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 AAA subrogation succeeds, the policyholder will receive a refund for some or all of their deductible.

Factors Affecting How Long AAA 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.