Car Accidents: Third Party Insurance vs. First Party Claims
When you’ve been in a car accident, you’ll likely need to file a claim with either your insurance company or the other party’s in order to recoup costs for your car repairs, medical bills, and other expenses incurred. These are called first party and third party insurance claims. The differences between third party insurance vs. first party claims can be important.
However, how do you know which type of claim you should file for your wreck? What can you expect with each type? Learn more about filing a car accident claim below.
Third Party Insurance Claims
A third party insurance claim is one filed with the insurance company of another driver involved. If the accident was the fault of another driver, even only partially, you will need to file this type of claim. Through a third party claim, the other driver’s insurance will cover the costs of your car repairs and damages or, in the event your car is totaled, provide you with the actual cash value of the vehicle.
If you were injured, the insurance company will likely offer you a settlement amount to cover your medical costs. It’s best you discuss any settlement offers with a qualified attorney before accepting.
First Party Insurance Claims
A first party insurance claim is one filed with your personal insurance company. If you’re involved in any accident, even if it’s not your fault, you may file this type of claim. If the accident is your fault, your insurance will help cover your costs, as well as costs the other driver may have suffered during the course of the wreck. If the other driver was at fault and their insurance doesn’t pay all of your repair or medical bills, your first party claim may help you cover them.
Additionally, if your car was stolen, vandalized, or otherwise harmed, you would also file a first party claim, and your personal insurance company would compensate you for the damages and repairs per your policy agreement.