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.

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.

Subrogation Process Explained

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.

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.

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.

Geico subrogation takes 6 months, on average, though every claim is different. Subrogation is the process through which Geico tries to recover money it paid for a claim, including the policyholder's deductible, from the at-fault driver's insurance provider. Subrogation is also known as “payment recovery,” and it generally applies to car accidents involving two or more drivers.

Factors Affecting How Long Geico 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.

On the policyholder's end, cooperating with the insurer and responding promptly can help speed up the process. For more information, check out WalletHub's guide to subrogation.

Progressive 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.

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

Factors Affecting How Long Progressive 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.

Allstate subrogation takes several months, on average, though every claim is different. Subrogation is the process through which Allstate tries to recover money it paid for a claim, including the policyholder's deductible, from the at-fault driver's insurance provider. Subrogation is also known as “payment recovery,” and it generally applies to car accidents involving two or more drivers.

Factors Affecting How Long Allstate 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.

On the policyholder's end, cooperating with the insurer and responding promptly can help speed up the process. For more information, check out WalletHub's guide to subrogation.

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.

USAA 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.

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

Factors Affecting How Long USAA 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.

Nationwide 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.

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

Factors Affecting How Long Nationwide 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 three types of subrogation are equitable subrogation, conventional subrogation, and statutory subrogation. They differ based on where the right of subrogation comes from: legal doctrine (equitable), a written contract (conventional), or legislation (statutory).

Types of Subrogation

• Equitable Subrogation: The right to subrogation is established by legal doctrine, though this right may be modified or eliminated with the existence of a contract. An example of equitable subrogation is when an insurance company collects damages from the at-fault party after a policyholder files a not-at-fault claim.

• Conventional Subrogation: The right to subrogation is established by a written contract that either exists independently or modifies a legal right to subrogation. An example of conventional subrogation is when the written contract for a car insurance policy gives the insurer the right to recoup the cost of a settled claim on the policyholder's behalf.
• Statutory Subrogation: The right to subrogation is established by legislation. This allows an individual to seek compensation from a party with whom they do not have a legal or contractual relationship. An example of statutory subrogation is legislation that allows employees to collect medical expenses from their employer if they're injured while working.

In general, subrogation is a process through which one party pays another party's debt and then collects reasonable compensation. The average individual will likely never be involved in the subrogation process directly, but it's helpful for consumers to have a general understanding of how it works.

Subrogation is most often used in the context of home and auto insurance, when an insurer pays a property damage or injury claim to a policyholder who is not at-fault and then recoups the cost of the claim from the at-fault party's insurer. Most home and auto insurance claims are the result of equitable subrogation modified by conventional subrogation, since the insurer has a legal right to subrogation in addition to a contract with the policyholder.

To learn more, 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.