If you are involved in a car accident you may eventually encounter what is known as subrogation. Subrogation refers to an insurance company's right to be repaid for claims on which it has made a payment. If an insured sustains a loss and the insurance company pays on a subsequent claim, the insurance company could become a subrogated party. A subrogated party may initiate a lawsuit on their own or join into a lawsuit initiated by someone else. How subrogation affects you depends on whether the accident was your fault or another party's fault.