A motor vehicle insurance policy’s subrogation agreement gives the insurance company the right to sue for and recover the amount that the insured might have recovered from a person who negligently causes injury. Maryland Casualty v. Jones, 358 S.W.2d 677 (Tex. Civ. App. – 1962, no writ).
Typical Texas standard automobile insurance policy language does include a clause specifically allowing the insurance company to recover all that it has paid, aside from uninsured/underinsured motorist benefits and personal injury protection (PIP) payments. An insurance company’s right to subrogation derives from right of the insured, and is limited to those rights; there therefore can be no subrogation where the insured has no cause of action against the defendant because subrogees always stand in the shoes of the one whose rights they claim.
Williams, McClure & Parmelee is dedicated to high quality legal representation of businesses and insurance companies in a variety of matters. We are experienced Texas civil litigation attorneys based in Fort Worth who know Texas courts and Texas law. For more information, please contact the law firm at 817-335-8800. The firm’s new office location is 5601 Bridge Street, Suite 300, Fort Worth, Texas 76112.