Subrogation scenario: If insurer B pays to Driver B, who may sue to recover damages?

Subrogation scenario: If insurer B pays to Driver B, who may sue to recover damages?

• A. Driver B
• B. Driver A or Insurer A
• C. Driver A only
• D. Insurer B

Answer: (B)

Subrogation gives the insurer who paid a claim the right to recover those costs from the party responsible for the loss. When insurer B pays Driver B for damages caused by Driver A, insurer B steps into Driver B’s shoes and can pursue recovery from the at-fault driver (Driver A) or from that driver's insurer (Insurer A). The insured who was paid (Driver B) doesn’t sue to recover in this subrogation process; the insurer does. Therefore, the entity that may sue to recover the damages is either Driver A or Insurer A.

Subrogation gives the insurer who paid a claim the right to recover those costs from the party responsible for the loss. When insurer B pays Driver B for damages caused by Driver A, insurer B steps into Driver B’s shoes and can pursue recovery from the at-fault driver (Driver A) or from that driver's insurer (Insurer A). The insured who was paid (Driver B) doesn’t sue to recover in this subrogation process; the insurer does. Therefore, the entity that may sue to recover the damages is either Driver A or Insurer A.