Dictionary defines the term “knock for knock” ass an agreement between auto insurers that in the event of an accident each insurance company will pay for the damage to the vehicle insured with it, without attempting to establish blame for the accident. It is an Agreement between two or more parties that each will not exercise claims or subrogation rights against the other but instead, will pay their own losses, even though the other party may be legally responsible for a loss. Knock-for-knock agreements are attempts to save administrative and legal costs which would be involved in pursuing subrogation rights and are based on the assumption that, in the long run, no party would achieve significant net subrogation recovers.