What does subrogation mean in the context of PAP?

What does subrogation mean in the context of PAP?

• A. Insurer's right to recover payment from a third party who caused the loss after paying a claim
• B. Insurer's right to cancel the policy upon a claim
• C. Insured's right to sue for additional damages against the insurer
• D. Insurer's right to deny future coverage after a claim

Answer: (A)

Subrogation in a Personal Auto Policy is when the insurer, after paying your claim, takes on your right to pursue the person responsible for the damage. Once the insurer covers the loss, they can go after the at-fault driver or that driver's insurer to recover the money paid to you. This keeps you from paying twice for the same loss and helps keep insurance costs down overall. It isn’t about canceling your policy, it isn’t you suing your own insurer, and it isn’t the insurer denying future coverage because of a claim.

Subrogation in a Personal Auto Policy is when the insurer, after paying your claim, takes on your right to pursue the person responsible for the damage. Once the insurer covers the loss, they can go after the at-fault driver or that driver's insurer to recover the money paid to you. This keeps you from paying twice for the same loss and helps keep insurance costs down overall. It isn’t about canceling your policy, it isn’t you suing your own insurer, and it isn’t the insurer denying future coverage because of a claim.