Many drivers have a tendency to treat the subject of subrogation with an element of caution when dealing with their auto insurance policies. Effectively, subrogation offers the insurance company a chance to recoup their money if certain issues are found during a claim so by being aware of the instances where charges may be applied, motorists can relax a little when the issue of subrogation arises.
Subrogation will often be applied when a motorist is deemed to be at fault in an accident although issues will most likely arise if a driver has been excessively reckless behind the wheel. If a motorist feels that subrogation could become an issue, it is highly advised that detailed information regarding the accident is collected. As well as providing information about all drivers involved in the accident and their relevant insurance details, it is also recommended that photographs, police reports, drawings and weather conditions are provided.
Subrogation may also apply if a motorist is only involved in a minor incident. If the costs of repair fall below the deductible figure set when the policy was first taken out, the driver will be expected to cover the full costs of the repair bill.
When an insurance company opts to cover their costs through subrogation, they may opt to cover their outlay through a third party insurer if another driver was deemed to be at fault in an accident. Because of this, it is highly important that motorists retain details regarding the insurance details and vehicle registrations of any other road users involved in the incident.