What is the term for when an insured's company pays for their repairs after being hit by another vehicle and seeks reimbursement from that vehicle's driver?

The term that describes the situation where an insured's company pays for their repairs after being hit by another vehicle and then seeks reimbursement from that vehicle's driver is subrogation. Subrogation occurs when an insurance company takes on the rights of the insured to pursue restitution from the party that is deemed responsible for the loss. This process allows the insurer to recover the amount they paid to the insured for the claim, which helps keep insurance costs down and ensures that the responsible party ultimately bears the financial burden of the damages.

In this case, when the insured's own insurance covers their repair costs, the insurer then steps in to recover those costs from the at-fault party’s insurance. This legal right enables the insurance system to function more efficiently and fairly, since it prevents insured parties from having to bear the financial consequences of accidents that were not their fault.