Subrogation means your insurance company can recover the money it paid to you for your injury from the at-fault party that caused your injury. Date of the Medi-Cal member's injury.In subrogation, your insurance company files a claim against the at-fault driver to recover what it paid to you. This is called subrogation. State Farm will try, to the extent that you're not liable for the accident, to recover all or a portion of the deductible you paid. It's the process where an insurance company steps into your shoes to recover funds from the party responsible for your injury. In workers' compensation claims, subrogation may allow an insurer or employer to recover costs paid from another party. You have no legal obligations to respond to a subrogation letter. Subrogation in California can apply anytime an insurance carrier makes payments to an individual who is not primarily at fault for an accident. Subrogation is a legal right that allows insurers to recover their costs from the at-fault party.