News Room

We continue our focus on insurance-related terms throughout the month of June. Today’s term is Subrogation.

Subrogation is the right of the insurer (insurance company) to take over the insured’s (the customer) rights following payment of a claim in order to recover the payment from another party (called the third party) responsible for the loss. For example, if your car has been damaged in an accident and the other person involved is responsible, you still have the right to make a claim to your own insurance company for the cost of repairing your vehicle. Through the process of subrogation, your insurance company can then make a claim to the insurance company of the person responsible in order to recover the money that it had paid to cover your claim.

What does this mean for you?

Subrogation really provides you with the convenience of being able to claim from your insurance company for damage for which you were not responsible. In such cases, recovering the cost from the other insurance company can be time consuming and you are often inconvenienced by the delay. For example, you may end up covering the cost of repairing your vehicle while the insurance company of the other party goes through the process of honouring the claim.Subrogation allows you to avoid having to do this because your insurance company then handles the recovery process from the parties who are liable. Your friends at EC Global Insurance would like to remind you to ensure that your policies are in order and all valuations are up to date. For further information, call one of our agents at 451-3244.