When Can an Insurance Company Recover Money Through Subrogation?

2026-10-26 00:00:00

An insurance subrogation claim allows an insurance company to go after a person or company for money that the insurance company already paid out to a policyholder. The insurer pays its policy obligations first, and then tries to recover that money from the third party that was actually responsible for the loss. An insurance company usually has the same recovery rights the policyholder had against the party that caused the loss.

Subrogation claims are necessary after many different kinds of losses, including car accidents, property damage, and workplace injuries. Our Illinois subrogation attorney helps insurers look closely at possible subrogation claims and decide whether litigation is worth pursuing.

Does Someone Else Have to Be Responsible for a Loss for an Insurance Subrogation Claim to Succeed?

Subrogation is based on the idea that the party who was legally responsible for causing a financial loss should ultimately bear the cost. For example, one of the most common situations that gives rise to a subrogation claim is an insurer that pays for vehicle damage caused by another driver. The insurer may pursue the at-fault driver or his insurance company for the amount the insurer paid, but the insurer must first pay the covered loss before pursuing the responsible party through subrogation. If the insurer hasn’t paid out a policy, it hasn’t suffered a loss and has no right to demand repayment.

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When Can an Insurance Company Recover Money Through Subrogation?

Does Someone Else Have to Be Responsible for a Loss for an Insurance Subrogation Claim to Succeed?