A Subrogation Letter should clearly state the facts of the case, including details of the incident (e.g. Subrogation occurs after an insurance company pays out to cover a loss and then pursues compensation from another source.A subrogation claim is when your insurance company demands reimbursement (out of the money you receive in a personal injury case) for expenses that it covered. The subrogation companies are serious about their demands. Their letters are no scam, and they will take legal action against injured people. Subrogation simply means the insurance company recovering what it paid due to another party's conduct. What should I know about auto claims subrogation? The experts at AAA will help you throughout the auto insurance claims process, including subrogation. The Plaintiff, above named, complaining of Defendants, above named, alleges and says as follows: 1. The letter should contain the date and location of the loss, the type of loss, and a brief description of the theory of potential liability.