After an accident, understanding the difference between first-party and third-party insurance claims is essential. A first-party claim is filed with your own insurance company, while a third-party claim is made against someone else’s insurer. Each type of claim covers different damages and follows its own process.
Knowing how these claims work can make a big difference when seeking compensation. From coverage details to the filing process, understanding the distinction helps ensure the right steps are taken to protect your rights.
What Is a First Party Claim?
A first party claim is a claim that is made by the policyholder. They file directly with the insurance company. The policyholder is seeking compensation for damage directly to their body or property. The policyholder is the first party of the claim, and the insurance company is the second party of the claim.
A first party claim is used when:
- An accident or injury impacts the policy holder or their property
- If the policy holder is at fault in an accident
- If the policy holder is involved in a no-fault accident
- If the policy holder is involved in an accident where the other driver is uninsured or underinsured
It’s important to note that the payout is limited to the terms and coverage of the policy in place. This can be found on the declarations page of the insurance policy.
Items that are covered by first party claim may include but are not limited to:
- Medical bills
- Property damage
- Vehicle repairs
- Diminished value
- Rental coverage
- Towing
To file a first party claim, the victim must:
- Get in touch with the insurance company about the accident
- Ask the insurance company to pay the victim for their losses
What Is a Third Party Claim?
A third party claim is an insurance claim made by someone who isn’t the policy holder or their insurance coverage.
A third party claim is used when:
- The victim is injured in an accident by another driver
- Another person’s negligence injures the victim’s property or person
The parties involved include:
- The first party is the insured
- The second party is the insurance company
- The third party is the person who is injured or has property damage
Third party insurance claim can cover:
- Medical bills
- Lost wages
- Property damage
Third party claims are filed when:
- The victim is seeking compensation for covered accident expenses
- The victim seeks to reduce their out-of-pocket expenses
To file a third party claim, the victim must:
- Call the at-fault party’s insurance company
- Provide details of the accident and the damages
- Submit supporting documents, such as medical reports and the police report
- Provide a detailed account of what happened, including the date, time, location, and exactly what actually happened during the incident
Get Help with Your First or Third Party Insurance Claim
If you were hurt because of another person’s negligence, you may be eligible to file a claim. Towey Law PLLC is Buffalo’s answer to zealous and focused legal assistance. Our small firm gets big results. Schedule your free consultation with a Towey Law PLLC attorney now by following this link.