Finance glossary
Subrogation
In simple terms
Subrogation is when your insurer, after paying your claim, takes over your right to recover the money from whoever was actually to blame.
On this page
What does subrogation mean?
Subrogation is a principle that lets an insurer, once it has paid your claim, pursue the person or company responsible for the loss to recover what it paid out.
It follows from the indemnity principle — you should not be paid twice for the same loss, and the cost should ultimately fall on whoever was at fault.
How subrogation works
Say another driver damages your car and you claim on your own comprehensive policy. Your insurer pays for the repairs, then uses subrogation to reclaim those costs (and often your excess) from the at-fault driver’s insurer.
You usually agree to co-operate with this recovery as part of your policy conditions.
How could this affect me?
Subrogation is mostly behind the scenes, but it can matter to you: if your insurer successfully recovers costs, you may get your excess back and it may protect your no-claims discount.
You are generally required to help — for example by providing details of the other party — rather than settling privately in a way that undermines the claim.
Things to watch out for
- Settling privately with the other party can undermine recovery — tell your insurer.
- You usually must co-operate with your insurer’s recovery efforts.
- Your excess may only come back if recovery succeeds.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- ABI, Making a motor insurance claim (opens in a new tab). Accessed 22 Aug 2026.