Anti-Subrogation Rule

Definition

The anti-subrogation rule is a legal principle that prevents an insurance company from suing its own insured, either directly or by stepping into the shoes of a third party who has a claim against the insured. In essence, an insurer cannot pursue subrogation against the very person it is contractually obligated to protect. This rule exists because allowing such claims would create a conflict of interest and undermine the fundamental purpose of insurance protection.

How It’s Used in Personal Injury Cases

The anti-subrogation rule most commonly arises when the same insurance company insures both the at-fault party and the injured party, or when one insured causes injury to another insured under the same policy. For example, if a passenger is injured by the driver’s negligence and both are insured under the same auto policy, the insurer generally cannot pay the passenger’s claim and then seek reimbursement from the driver. The rule protects insureds from having their own insurance company become their adversary in litigation.

Practical Example

You’re a passenger in your friend’s car when they cause an accident through their own negligence, injuring you. Both you and your friend are covered under the same auto insurance policy—perhaps a family policy or one that extends coverage to permissive users. You file a claim for your injuries. The insurance company pays your medical bills and pain and suffering damages. Under the anti-subrogation rule, the insurer cannot then turn around and sue your friend (its own insured) to recover what it paid you. The insurer must absorb this loss as part of its contractual obligation to provide coverage.

Why It Matters to Your Case

The anti-subrogation rule can significantly affect how claims are handled when multiple parties share the same insurance coverage. Understanding this rule is important when family members are involved in accidents together, when employees and employers share coverage, or when multiple claims arise from the same policy. The rule prevents insurance companies from creating circular litigation that would ultimately harm their insureds. However, the rule has limits—it typically doesn’t prevent subrogation against co-insureds for intentional acts, and some policies contain waivers of subrogation that specifically address these situations.

Key Takeaway

The anti-subrogation rule prevents insurance companies from suing their own insureds to recover claim payments. This protection ensures that your insurance company cannot become your adversary in litigation over claims you’re entitled to receive.