Insurance companies often pay for the loss resulting from the actions of a third party. You just need to send a rightful insurance claim letter upon an accident to get a reimbursement. After the approval, the funds will be transferred within the previously agreed deadline, which is, by the way, quite tight. Although such benefits are the primary reason why consumers purchase insurance, they strain the resources of the insurer.

So how do insurers deal with this problem?

The answer is subrogation letters. They enable insurers to recover the money and ask the responsible person to make up for the loss. By making the offender cover the expenses, insurance providers can refill the reimbursement fund and establish justice.

For more information on subrogation letters and how to send them, read about:

  • What is a subrogation letter and when it is used
  • How and why to send subrogation letters via direct mail
  • Direct mail automation for subrogation letters
  • Additional uses of direct mail automation for official communications, such as bank account statements, utility bills, and more

What Is a Subrogation Letter and When Is It Used?

A subrogation letter is a written notification sent by a subrogation adjuster to a person or organization that seems to be responsible for reimbursing expenses to an insurance company. Simply put, it’s a mail piece that informs a person that they are considered guilty in a specific accident and need to pay for the damage.


To properly handle subrogation letters as an insurance company or a recipient, you should understand how this procedure works. Here are the usual events related to a subrogation claim:

  1. An accident happens with a policyholder that sends an insurance claim letter to an insurance company to seek reimbursement. For example, the insured ends up in a hospital after being injured in an accident. Since the health issues are quite serious and require prolonged treatment, the medical bills could easily reach $30,000 (or more).
  2. The insurance company reviews the insurance claim letter and decides to satisfy the request. After that, the medical bills of the policyholder are instantly reimbursed according to the terms of the insurance. The insurer pays the whole requested amount.
  3. The insurer investigates the situation and sends a subrogation letter to the responsible party on behalf of the policyholder. If the at-fault person has insurance, their insurance company will handle all the subrogation chores and may reimburse up to $30,000 to the insurer of the injured policyholder. If the guilty party is uninsured, they will need to communicate with the policyholder’s insurer directly and recover the money paid on the claim on their own.

Note. Policyholders cannot receive the coverage indicated in the insurance policy by sending an insurance claim letter and seek reimbursement from the responsible party at the same time. A subrogation letter is sent only when the guilty person doesn’t make up for the loss.

This way subrogation letters enable insurers to mediate the relationships between the injured and the guilty. They introduce a clear subrogation procedure and help the at-fault person stay informed to protect their rights if necessary. Such communications are not about accusing someone but about reaching a consensus about the real damage and compensation.

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How and Why to Send Subrogation Letters via Direct Mail

If you are an insurance company, you have to initiate the subrogation procedure within a specific timeframe. Otherwise, you’ll just lose the chance to get your money back. The usual period in most states varies from 30 to 45 days, but it’s better to investigate your local regulations and consult with a lawyer. Also, make sure to analyze the subrogation opportunities as soon as you get an insurance claim letter from the insured.

mail statement

As to the format, a subrogation letter should include:

  • Letter creation date
  • The name of the insured and the name of the at-fault party
  • The sum paid to the insured
  • Summary of the damages
  • Request for the policy number of the recipient
  • Request to contact the insurance company and contact details

Since similarly to insurance claim letters, subrogation notices are considered official communications, direct mail is a preferred option to deliver them. It provides both the insurer and the responsible party with the record of their communication. This information can be later used in case of a lawsuit, for example, to prove that the recipient ignored the subrogation letters or vice versa, the insurance company sent them too late.

Direct Mail Automation for Subrogation Letters

Insurance companies may need to send dozens or even hundreds of subrogation letters per day. Even though you can manage the printing and delivery process manually, it’s a huge waste of time and effort. To deliver a single mail piece, you will be forced to arrange numerous separate processes – from document rendering to the cooperation with the USPS.

Direct mail automation helps to avoid the printing hassle and digitalize subrogation letter delivery. In particular, Inkit’s mail automation platform smoothly integrates with your database or CRM to automatically obtain customer data and print personalized mail. It also renders every document delivered to customers, which is very convenient for record-keeping and regulatory compliance. You will get access to separate customer profiles with detailed information on what was delivered and why.

Most importantly, thanks to the integration with your systems, Inkit will automatically send subrogation letters based on specific triggers. This will help you avoid late notices and provide better customer service to insurers.

Additional Uses of Direct Mail Automation for Official Communications: Bank Account Statements, Utility Bills, and More

utilities bill

Automated direct mail is an effective solution not only for insurance companies. Financial services, utility companies, healthcare organizations, and other entities that regularly send a large volume of offline communications can also benefit from automation. Consider automating direct mail, if you provide:

  • Bank account statements. Every bank or credit union deals with bank account statements on a monthly basis. This document includes the customer’s bank account number, debit card purchases, credit card payments or transfers, account balance, and other relevant information. Although today you can review your statements in online banking, you may still prefer to receive printed copies of your statements via mail. Mail automation enables financial institutions to provide print and electronic statements with equal ease.
  • Invoices. This type of print documents is used by any organization that sells products or services. An invoice is an official proof of the deal and request for payment. Thanks to direct mail automation, companies can always send invoices in time and keep track of the delivery.
  • Utility bills. Given that tons of utility communications must be sent every month within a very tight time frame, direct mail automation is a great option for utility companies. It allows them to reduce the number of late payments and disputes.
  • Healthcare bills. To follow the requirements of HIPAA, organizations must ensure secure processing and transmission of customer information. Since automated direct mail minimizes the risk of human error and is generally handled by machines, it offers the necessary level of security and makes healthcare institutions compliant.

These are just some of the most common direct mail uses. In fact, you can automate any kind of mail piece, be it marketing postcards or personalized bank statements. Automated direct mail is better targeted, more personalized, and cheaper than traditional mail.

Want to automate offline communications? Contact Inkit to learn how our mail automation tool can help you.

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