The definition of a subrogee in general is a person or entity, such as an insurance company, who assumes the legal right to attempt to collect a claim of another person or party (the subrogor).

In regards to auto insurance a subrogee is usually the insurance company which has insured the person/party (subrogor) and to which expenses (a claim) was paid. So the subrogee, the insurance company, may now go after, subrogate, the at-fault party. This may include filing a lawsuit against the party which caused the damages to its insured which the subrogee paid or go after the at-fault party's insurance company to be repaid for the claim.

For example say the car of an insured is hit by a person that runs a red light. The person hit (the not at-fault party) has their insurance company compensate them. This is accomplished by the insurance company paying the damages sustained to the car when their insured claims it through their Collision coverage.

The insurance company of the person hit by the party that ran the red light now will subrogate either with the at-fault party's insurance company or if the at-fault party was uninsured with them directly. This can include demand letters or taking them to court to try and recover partly or fully the amount spent by not at-fault party's insurance carrier on the claim. The insurance company that is the subrogee for their insured may also try to recoup the insured's deductible that was paid out, for their Collision coverage to cover their damages, as part of the subrogation process.

For more information on this term refer to a legal expert, your state's insurance regulator or even your insurance agent or insurance adjuster.