After an insurance company compensates a policyholder for a stolen vehicle that is later recovered, the insurer's right to take ownership of the recovered vehicle is based on the principle of

The principle of subrogation allows the insurer, after paying full indemnity to the insured, to step into the shoes of the insured and claim any rights or recoveries related to the loss. In this case, the insurer takes ownership of the recovered vehicle to prevent the insured from benefiting twice from the same loss.