Subrogation – when an insurer seeks recovery beyond what was paid

I was in an accident and my insurance company opted to cut me a check for the
repair estimate instead of going directly through the repair shop long story,
not relevant. The estimate they based the pay out on is less than the estimate
they are seeking to recover from the at-fault party’s insurance company. The
estimate differences are based on specific ‘corrections’ for various part prices
and repair costs. I have two estimates One with red lines through some items and
corrected cost estimates and a corrected total estimate my payout is based on
this version. The version they sent the other insurance company through
subrogation is the uncorrected version the higher estimate. Is this legal?

Asked on September 8, 2017 under Insurance Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, insurers can only recover the actual amount(s) they paid out; they are entitled to reimbursement from the at-fault driver for the amounts they had to pay due to the at-fault driver's carelessnes, but are not entitled to make a profit on it; "surbrogation" is recovery of the *actual* repair costs.

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