Subrogation Legal Meaning and Definition

Here is a simplified definition of the legal term Subrogation.

Subrogation (noun): This term refers to the legal process or right by which one party (typically an insurance company) assumes another's legal rights in order to recover costs or damages. For instance, after an insurance company reimburses its client for damages in a vehicle accident, through subrogation they can seek recovery from the individual or entity responsible for causing the damage. This process allows the insurance company to pursue any benefits that would have otherwise gone to the insured individual.