Suppose you file a third-party claim, and the other driver’s insurance company does not offer a settlement that covers all your losses.
In that case, you can file a claim against your insurance policy if you have collision or comprehensive coverage. The subrogation process enables your insurer to attempt to recoup the difference between your covered amount and the liable party’s insurance company.
Subrogation can also occur if you file a collision coverage claim when the other driver was at fault without seeking compensation from the other party’s insurer.
In this case, your insurer will seek the amount they paid you under the collision coverage from the other party’s insurance company.
States may limit how long an insurer can take to respond to a claim. For instance, New York law requires providers to make a property damage offer within six business days.
If your claim is accepted, the insurance company will pay the settlement based on the policy’s coverage limit.
For example, if a policy covers $20,000 in property damage losses, it will only pay up to $20,000 for a claim.
