by 
The Curious Bag
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When an insurance company pays a not-at-fault claim for their insured, their policy language may allow them to stand in the place of the insured and pursue recovery through a process known as subrogation.
Restitution
Restitution is a means of subrogation whereby an uninsured driver is ordered by a court to repay the insurance company if a crime was committed at the time of the accident, such as driving under the influence.
Claimant carrier
Direct subrogation from a claimant's carrier occurs if liability clearly rests on the claimant. In this situation, an insurance company will pay the claim for their insured and pursue the claimant's carrier by means of a letter detailing damages and supporting documents proving liability.
Arbitration
Auto insurance carriers that cannot agree who is liable for an accident may hire a third party or arbitrator to determine who is at fault. The decision of the arbitrator can be final and binding.
Collections
There are many law firms which handle auto subrogation matters on behalf of a carrier. These firms will pursue an at-fault uninsured driver through legal means, including filing judgments or liens on owned properties, garnishing wages and revoking a drivers license.
Benefits
Subrogation recoveries have a direct positive effect on the bottom line of an insurance company's balance sheet.
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