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Hey WalletHubbers! Today, were talking about what a waiver of subrogation is. A waiver of subrogation is a legal clause that prevents an insurance company from recovering the money they paid on a claim from the responsible partys insurer. In car insurance, a waiver of subrogation usually keeps the not-at-fault drivers insurer from recouping claims payments from an at-fault driver. Lets look at an example scenario. Say Driver A ran a red light and hit you while you were driving legally, but Driver A wont admit fault. As a result, you have to file a collision claim with your own insurance company and pay your deductible in order to get compensated for your car repairs. Thats not the end of the story, though. At this point, your insurer begins the process of subrogation, negotiating with Driver As insurance company to try to replace the money it paid for your claim. You may even get your deductible back if subrogation is successful. However, Driver A may