By Brian Montalto
Subrogation. What does it mean? It’s a term the insurance company uses in where it looks to collect monies owed from a negligent party that was paid to their insured.
New York State is governed by comparative negligence law when there is an auto accident. In cases where the investigation may deem you to be 50% liable, it is usually best to use your own collision coverage for damages to your vehicle, than to make a direct third party claim against the other vehicle.
For example, if the damages to your vehicle are $5000.00, you would get paid 50% of your damages by the adverse insurance company which would be $2500.00
If you use your own collision and you have a $500 deductible, you can get your vehicle repaired by your own insurance company and pay the deductible. Once your insurance company makes a subrogation claim, you will be refunded 50% of your deductible, which would be $250. That’s and significant difference in out of pocket losses, and your vehicle gets repaired timely by using your own collision coverage insurance.