The legal right of an insurance company, after paying a claim, to pursue recovery from a third party who is responsible for the loss. For example, if your parked car is damaged by another driver, your insurer may pay your claim and then seek reimbursement from the at-fault driver's insurer. Subrogation helps keep insurance costs down for all policyholders.
Understanding subrogation is important for Canadian insurance consumers because it directly affects how your coverage works and what you can expect when you need to use your insurance. Knowing how this works can help you navigate the claims process more effectively and ensure you receive fair compensation.
If you have questions about how subrogation applies to your specific insurance needs, speaking with a licensed insurance broker can help clarify your options and ensure you have the right level of protection.
A formal request made by a policyholder to an insurance company for payment or compensation for a covered loss or event. The claims process typically involves reporting the incident, providing documentation, having the damage assessed by an adjuster, and receiving payment according to the policy terms.
A person who investigates insurance claims to determine the extent of the insurer's liability. Adjusters may be employed directly by the insurance company (staff adjusters), work independently (independent adjusters), or be hired by the policyholder (public adjusters). They assess damage, review policy terms, and negotiate settlements.
Property that has been damaged and recovered by the insurance company after paying a claim. After a total loss claim, the insurer takes ownership of the damaged property (such as a vehicle) and may sell it at a salvage auction to recover part of the claim cost. Salvage vehicles in Canada receive a branded title and must pass inspection before being re-registered.
A licensed insurance broker can explain how subrogation applies to your specific situation and help you find the right coverage.
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