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Waiver of Subrogation. A waiver of subrogation is an agreement by an insured person to leave his insurance company out of the claim. This comes into play when an individual who caused damages wants to settle the matter directly with the other partyâs insurance company.
Subrogation is a term that's unfamiliar to most people who are not part of the insurance industry. However, if you have a claim with your car insurance company, understanding what subrogation is and how insurance companies use it to recover some of their costs is important.