A Subrogation Letter should clearly state the facts of the case, including details of the incident (e.g. Subrogation is a legal right that allows insurers to recover their costs from the at-fault party.The subrogation process is the right of an insurance company to recover the amount it has paid on a claim from the at-fault party. Subrogation is an arrangement between insurance companies to prevent insured parties from receiving double compensation. This guide discusses what to do after an accident and what to expect when you file a claim with your insurance company. What should I know about auto claims subrogation? The experts at AAA will help you throughout the auto insurance claims process, including subrogation. Learn how State Farm may try to recover a claim payment when another party is primarily at fault for your damages. Partial payment to the insured results in partial subrogation; the insurer is subrogated in the amount of the insurance proceeds. The insurance company would need to initiate a legal action to pursue their subrogation claim.