In own-damage coverage, which party is protected by a subrogation waiver?

• A. A neighbor driving the automobile with the insured's consent
• B. A waiver applies to all third parties regardless of circumstances
• C. A waiver applies only when the vehicle is stored in a parking facility
• D. A waiver applies to the insured themselves

Answer: (A)

Subrogation lets the insurer step into the insured’s shoes after paying a claim and pursue the party at fault to recover the loss. A subrogation waiver removes that recovery right for a specific person who is driving the insured’s car with the insured’s permission. In own-damage coverage, this protects someone like a neighbor who borrows the car from being pursued by the insurer for reimbursement if they caused the damage. So the neighbor driving with the insured’s consent is shielded from subrogation.

This protection isn’t extended to all third parties, isn’t tied to parking facility storage, and doesn’t apply to the insured themselves, who aren’t the target of subrogation in this scenario.