What type of insurance is most likely to utilize a subrogation process?

Subrogation is a process used by insurance companies to recover costs from a third party that may be responsible for a loss for which the insurer has already paid a claim. Property insurance is particularly likely to involve subrogation because it covers physical assets, such as homes and vehicles, that can be damaged due to the actions or negligence of another party.

For example, if a person's home is damaged by a neighbor's careless actions (like starting a fire), the homeowner's property insurance may cover the repairs. After paying the claim, the insurer may pursue subrogation against the neighbor to recover the money spent on repairs. This process helps keep insurance premiums lower by allowing insurers to recoup some costs.

Health insurance, life insurance, and accident insurance typically do not involve subrogation to the same extent as property insurance. These types of insurance more often deal with immediate medical expenses or benefits paid out upon death, rather than significant expenditures related to property damage that can involve a responsible third party. Thus, subrogation is most commonly associated with property insurance, making it the correct choice in this context.