"Subrogation" refers to the act of one person or party standing in the place of another person or party. Subrogation is a way for your insurer to seek repayment for the money it paid to you from the atfault party's insurance company.Subrogation claims are made up of economic damages, such as medical expenses and wage loss. Michigan does have laws related to the right of reimbursement. Sometimes, this is referred to as subrogation. Subrogation is the substitution of one person into the place of another with respect to rights, claims, or securities. You have no legal obligations to respond to a subrogation letter. A waiver of subrogation is an agreement set between two parties that removes the right to take legal action against the waiver holder. EXAMPLE: John has car insurance with State Farm. Bob rear ends John on the road causing damage to John's car.