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Small Claims, Big Impact: Why Expedite Fleets Shouldn’t Overlook Subrogation

Accidents happen fast, and for expedite fleets, speed is everything. Whether it's a van, box truck, or sprinter, even minor damage can stall operations and drain profits. While the costs of repairs might seem small in isolation, for high-frequency, high-efficiency fleets, those expenses can snowball quickly. That’s why it's critical for expedite fleet owners to understand the value of subrogation in recovering repair costs no matter how minor the damage.

In this article, we’ll walk through how subrogation works, how to pursue claims in-house when appropriate, and why small-dollar claims are absolutely worth your attention.

Subrogation Explained: A Financial Lifeline for Expedite Fleets

What Is Subrogation?

Subrogation is the process where you or your insurance seek reimbursement from an at-fault party's insurance after you or your insurance paid to repair your vehicle. In the world of expedite trucking, where tight delivery windows and vehicle uptime are crucial, even a short repair window can mean lost business.

Example – You Use Your Insurance:

• Your fleet van is rear-ended by a distracted driver.
• Your insurance pays $4,000 for the bumper and taillight repairs.
• Your insurance then pursues the at-fault driver (and their insurer) to recover the $4,000 they paid out.

This helps maintain your claim history and keeps your focus on getting back on the road.

Self-Insurance: Handling Subrogation Internally

Given rising insurance premiums, many expedite fleets are opting for higher deductibles—or paying for minor repairs out of pocket. But just because you're paying doesn’t mean you shouldn’t recover.

Example – You Pay Out of Pocket:

• Your expedite van is rear-ended. Damage totals $3,500.
• Your deductible is $7,500, so insurance doesn’t help.
• You handle repairs immediately to avoid service disruption.
• Then, you (or your subrogation partner) pursue the at-fault party or their insurance directly for reimbursement.

While technically not subrogation when done outside of insurance, the goal is the same: get your money back.

Why Small-Dollar Claims Matter for Expedite Fleets

1. Cumulative Costs Add Up

An expedite fleet of 10–50 vans may have dozens of small incidents per year. Even if each repair is under $5,000, the total annual outlay could easily exceed six figures. Failing to pursue those claims leaves money on the table.

2. Contingency Fee Subrogation Firms

You don’t need a dedicated collections team. Many experienced transportation subrogation firms work on contingency—meaning they only get paid if they recover money for you. This makes even lower-value claims worth pursuing.

3. Revisit Old Claims

Look at the past 1–3 years. Did your fleet pay for accident-related repairs that weren’t your fault? If you’ve kept records and repair invoices, those may still be recoverable. Partner with a firm that can audit those past claims and advise on recovery chances.

Action Steps for Expedite Fleet Owners

1. Act Fast After Accidents

• File incident reports quickly.
• Notify your insurer and ask about their subrogation process.
• If handling in-house, send a demand to the at-fault party or their insurer promptly.

2. Get Proper Repair Documentation

• Work with body shops who understand commercial vehicle documentation.
• Ask for clear photos, detailed invoices, and damage assessments to back your claim.

3. Minimize Downtime

• Always document your efforts to mitigate losses—like using rental vehicles or rerouting deliveries.

These steps not only reduce out-of-pocket losses but also strengthen your claim if challenged.

Conclusion: Don’t Shrug Off Small Claims

For expedite fleets, time is money—and so are those “minor” fender benders. If you’re self-insuring and absorbing small repair costs, you could be missing out on thousands in recoverable funds. By understanding subrogation, evaluating your claims strategy, and acting quickly, you can improve your bottom line without sacrificing delivery speed.

Small claims? Don’t throw them away—send them our way. Let our team help recover what your fleet is owed.

Visit downtimeclaims.com today!

The information in this article is general in nature and is not intended as legal advice.