According to Merriam Webster, “subrogate” means “to substitute for another with regard to a legal right or claim…”
What does this even mean?
Let’s use a car accident case as an example to help you better understand. If the person that caused the accident (also known as the tortfeasor or at-fault party) is underinsured to pay for your damages (medical bills, lost wages, missed vacation, injuries, etc…), then you will have to turn to your own insurance company’s Under-Insured Motorists (UM) policy to pay. As a result, if your own insurance company pays you for the damages you suffered in the accident, it may then turn around and try to recover the money from the underinsured at-fault driver. Therefore, in this example case, your insurance company may pursue its “right of subrogation” with the at-fault party or their insurance company.
It is important that you know that if you decide to settle with the underinsured at-fault driver, you must first then follow the Florida Statute procedural requirements.
We are here to help you if you have any questions.
Attorney Edgar J. Guzman