Idaho Law Blog
I was injured in a motor vehicle collision that was not my fault. My insurance company paid for my medical bills and now they are telling me that they have a right of subrogation in my claim against the at-fault party. What does that mean?
Subrogation is the substitution of one party for another whose debt the party pays, entitling the paying party to rights, remedies, or securities that would otherwise belong to the debtor. Said otherwise, pursuant to the language which is probably in your insurance policy, when your insurance company paid your medical bills and those bills were incurred due to the negligence of another, your insurance company has the right to be paid back. The insurance company can sue the at-fault party seeking reimbursement or alternatively, they can obtain recovery through you in your claim/lawsuit against the at-fault party. When the at-fault party (or their insurance company) pays you to resolve the claim, a portion of those proceeds will need to go to your insurance company unless your insurance company agrees to waive all or a portion of their subrogation rights.
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