Subrogation

Think: below rogation.

Doesn't help? Hm, well then...“subrogation” is the handy legal principle that gives insurance companies the authority to collect money from the people who cause damage to their clients. It basically says that our insurance company can serve as a substitute legal claimant in our stead. So if we were robbed, or injured in an accident, or whatever caused us to file an insurance claim, our insurance company has the legal right to stand in for us and go after the money we’re owed.

This is especially awesome because it means we don’t have to wait for the random dude who rear-ended us at that intersection to cough up the money we need to fix our car. Instead, our insurance company pays us right away so we can get on with our life, and then they turn around and collect the debt from the guy who caused the accident.

Subrogation can save us time, money, and frustration. And really, if that’s not the whole purpose of having insurance, then we don’t know what is.