Back to blogUpdated · 1 min read

Subrogation

Subrogation means that your insurance company has the right to pursue a third party that has caused you to suffer a loss. This is so that your insurance company can claim back the money they spent on repairing or replacing your insured item(s).

What’s an example of subrogation?

Let’s say that you are in a bumper bashing that was caused by another person. It’s a bit of a mission to claim from the other party’s insurer so you decide to just claim directly from yours. Your insurer pays you out or repairs the damage to your car. This is when subrogation takes place. Your insurer will approach the third party’s insurer and attempt to claim back the money they spent to repair or replace your vehicle. Through this process, your insurer will often also pay back your excess if they are successful in making their recovery.

What does third-party liability cover?

Third-party liability cover provides you with protection when you are in a car accident where you damage someone else’s car or property and you are held legally responsible to cover the cost of their damage.

You might also like

Definitions

Insurance

Insurance is something that you buy to protect yourself against losses you will suffer if certain things happen to you, like if your car gets stolen, your house burns down or you get sick or pass away.

1 min read
Definitions

Assessor

An assessor is someone who assesses a claim after it has been submitted to the insurance company.

1 min read
Definitions

Warranty

A warranty is a limited-time guarantee or promise from the manufacturer of the product you’re purchasing that they will repair or replace the item if there is a manufacturer fault.

1 min read