Insurance claims can be broadly categorized into first-party or third-party claims. A first-party claim is made directly to your own insurance company to cover accident-related expenses, typically concerning your person or property. In contrast, a third-party claim involves filing against someone else’s insurance provider.. Please continue reading as we explore the key differences between first-party and third-party claims, as well as the importance of connecting with a skilled New York City Auto Accidents Attorney for guidance.
What’s the Difference Between First-Party and Third-Party Claims?
A first-party claim refers to a claim that is filed with your own insurance company following an accident or injury. If you are insured, you can request compensation for covered losses. For instance, hitting a pole and damaging your vehicle can lead to a first-party claim with your insurer. After filing, the insurer will check your policy coverage. If you have this type of coverage, the insurance company will reimburse repair costs minus your deductible. Filing an uninsured/underinsured motorist policy claim is also a first-party claim.
A third-party claim, on the other hand, refers to a claim initiated by someone other than the policyholder or the insurance company. It often arises from incidents like car accidents, where another motorist is at fault. If you are the victim in such a situation, you can file a third-party claim with the at-fault motorist’s insurance to seek compensation for your accident-related damages. For example, should a drunk driver collide with your vehicle after running a red light, you would likely file a claim with their insurance company.
In this scenario, the at-fault motorist’s insurance is responsible for your damages, as their liability coverage includes injuries caused by negligent or reckless driving. Since there is no contract between you and the at-fault motorists’ insurance company, filing a third-party claim offers several advantages. You can pursue damages that your own insurance may not cover, such as medical expenses, pain and suffering, mental anguish, and lost wages.
Should I Consult an Attorney?
In many cases, the insurance company will investigate the circumstances of the accident to determine fault and coverage. You will need to engage in negotiations to reach a favorable settlement based on the extent of your damages. If a fair settlement agreement cannot be reached with the insurer, you should consider legal action to pursue your claim. An attorney can advocate for your rights and fight for the compensation you need to get your life back on track.
The claims process, whether third-party or first-party, can be complex. As such, it’s advisable to seek guidance from an experienced attorney from Swerling Law. Contact our firm today for a consultation regarding your claim.