Understanding Subrogation in Commercial Auto Claims

If your business relies on vehicles, being aware of various parts of the claims process, including subrogation, is crucial. This part of the process can play a key role in the outcome of your commercial auto insurance claims.

What Is Subrogation?

Subrogation is a legal process that allows your insurance company to recover costs from another party who was responsible for a loss. For example, if your business vehicle is damaged in an accident caused by another driver, your insurer may pay for your repairs and then seek reimbursement from the at-fault party’s insurer. This process may help keep your out-of-pocket expenses lower and help recover your deductible.

You may encounter subrogation in situations like these:

• A delivery driver is hit by a distracted motorist while making a scheduled stop.
• A fleet vehicle is totaled by a driver who carries insufficient liability coverage.
• An employee is injured in a car accident caused by a third party, and while on the job.

In each case, your insurer pays the claim, then pursues the responsible party or their insurer for reimbursement.

How Subrogation Impacts Your Commercial Auto Claims

Subrogation can play a significant role in the outcome of your claim:

• Faster repairs—Your insurer may handle your claim quickly, even before fault is determined, and then pursue reimbursement.
• Deductible recovery—If subrogation is successful, you may get your deductible back.
• Claims history—Successful subrogation may help prevent your claims history from being negatively impacted by losses that weren’t your fault, although practices vary by insurer.

In Georgia, subrogation is governed by state laws that define when and how insurers can seek reimbursement from the at-fault party. Providing your insurer with documentation, witness information and accident details can help support and strengthen the recovery process.

Keep Your Coverage on Track

Before a claim happens, take time to review your policy for subrogation provisions, coverage limits and any waivers of subrogation required by agreements with clients or vendors. Contact Express Auto Agency today to learn more about commercial auto insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.