Melody's car was damaged when another driver ran a stop sign and hit her car.Melody decided to collect from her own insurer and to let her insurer recoup the loss payment from the negligent driver who hit her.What fundamental legal principle is illustrated in this scenario?

Question

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This scenario illustrates the principle of subrogation, which allows an insurer to step into the shoes of the insured and recover payment from a negligent third party. Melody's insurer paid for the damages to her car, and now has the legal right to pursue the negligent driver for reimbursement.

Melody's Car Was Damaged When Another Driver Ran a Stop