In insurance terms, subrogation is a legal action that an insurance company (the insurance carrier) takes to recoup the funds paid out in a claim from the at-fault party. This allows the insurer to adopt the legal right of the injured party to seek reimbursement, preventing unjust enrichment. "Subrogation," or "subro" for short, refers to the right your insurance company holds under your policy — after they've paid a covered claim — to request reimbursement from the at-fault party. This reimbursement often comes from the at-fault party's insurance company. Essentially, subrogation is the insurer's right to recoup its losses after paying a claim. The principle of subrogation serves two main purposes. Firstly, it ensures that the insured doesn't recover more than the actual amount of the loss – either from the insurer, the party at fault, or both. Iu8J7yH.