After paying an insured $18,000 for a covered auto loss caused by a negligent third party, the insurer pursues the at-fault driver for reimbursement. Which policy provision authorizes this action?

Why this is the answer

Subrogation is the right of an insurer — having paid a covered loss — to stand in the insured's legal position and pursue recovery from the responsible third party. It prevents the insured from collecting twice (once from the insurer, once from the tortfeasor) and shifts the ultimate financial burden to the party at fault. Here, after paying $18,000, the insurer may sue or negotiate with the at-fault driver. Appraisal resolves valuation disputes; Other Insurance addresses multiple policies; mortgagee clause protects lenders — none apply to third-party recovery.