What is subrogee?


A subrogee is generally defined as a person or a unit like an insurance firm, that takes up the legitimate right to try to collect for another individual or party (subrogor) a certain claim. In relation to car insurance, a subrogee is typically the insurance firm that insured the individual and/or party (the subrogor) that received the expenses as payment.

After getting the payment, the insurance company (subrogee) can pursue the subrogate or the party found to be at fault. The subrogee could file a suit against the party determined to have been guilty of causing damages to the subrogee. Whatever the subrogee gets from the party at fault will be kept as repayment for the claim it gave the subrogor.

For instance, the vehicle of an insured person is rear ended by another person who ran through a red light in clear violation of traffic rules. In this situation, the latter is at-fault. The person whose car was hit will receive compensation from his insurance firm. The insured person whose vehicle was hit accomplished this through payment he got from his insurer by claiming for damages by way of the collision coverage.

The insurance firm will make up for its losses in damages by running after the at-fault party that rear ended the insured person whose car was hit. The insurer will subrogate with insurance firm of the at-fault party, or directly with the at-fault party if he has no insurance coverage. The insurance firm or subrogee can send demand letters or try to sue the at-fault party in court to get back the full amount or part of the money it paid the subrogor. The subrogee for the insured individual could also attempt to recover the deductible of the insured (subrogor) that was given out as payment for the collision coverage on the damages. This is all part of the process of subrogation.