• Example: 2004 Ford F150 starts on fire and burns up in driveway. Faulty alternator is cause.Here is a practical example of a subrogation. This process serves to reimburse your insurance company for a payout it gave to you, the claimant. Subrogation is a legal process that allows your car insurance company to recover money from the atfault party or their insurer. You have no legal obligations to respond to a subrogation letter. Subrogation is a common process in which your insurance company gives you money for your damages upfront, then goes up against the defendant for reimbursement. The act of subrogation primarily occurs between your insurance company and that of another person's insurance company. A person can be substituted in place of another so as to have all rights and obligations pertaining to a lawful claim, demand, or right against a third party. Liberty Bank, 540 S.W.2d 554 (Tex.
