What Are First-Party and Third-Party Insurance Claims?

First-party claims involve direct dealings with your own insurance company, while third-party claims require you to file against someone else’s auto insurance provider. Knowing the type of claim you need to file after a car accident ensures that you approach the situation correctly and pursue the compensation you deserve.

First-Party Insurance Claims

A first-party insurance claim involves a direct relationship between the policyholder and their insurance company. When you purchase an auto insurance policy you become the “first party” in the contract. The insurance company, in turn, is the “second party.” This relationship is contractual, meaning that when a loss or accident occurs, you are entitled to file a claim for coverage based on the terms outlined in your policy.

For example, if you’re involved in a car accident and have collision coverage, you can file a first-party claim with your auto insurance provider to cover the damage to your vehicle. Depending on your coverage, first-party claims can also cover:

• Medical expenses: Coverage for injuries, hospital bills, and treatment costs depending on the type of insurance.
• Uninsured/underinsured motorist coverage: This compensates you when the at-fault driver does not have or lacks sufficient insurance.
• Rental car: Reimbursement for a rental car while your vehicle is being repaired. 
• Comprehensive: Covers non-collision incidents like theft, fire, or natural disasters.

When you file a first-party claim, your insurance company evaluates the situation, investigates the claim, and determines the amount of compensation based on your coverage limits and policy terms.

Third-Party Insurance Claims

A third-party claim is when you file a claim against another driver’s insurance policy. Third-party claims come into play when another driver is at fault for the accident, and you want their insurance to pay for your damages.

For instance, if you’re rear-ended by another driver and they’re clearly at fault, you would file a third-party claim with their insurance company to cover your repair costs and medical expenses. The goal of a third-party claim is for the at-fault driver’s insurance to cover the financial impact of the crash, so you don’t have to rely on your own policy or pay out-of-pocket.

In third-party claims, the at-fault party’s insurance company will investigate the claim, verify the policyholder’s liability, and determine the compensation based on the available coverage. Unlike first-party claims, third-party claims involve a negotiation, which can sometimes be challenging if they attempt to dispute liability or offer a lower settlement.

How an Attorney Can Help

A Las Vegas Car Accident Attorney can provide critical support when filing a first-party or third-party insurance claim. They handle all communication with insurance companies, gather evidence, and ensure that your claim is filed correctly and on time. A lawyer will negotiate aggressively to secure fair compensation and protect you from tactics that could delay or minimize your payout. They will also be prepared to take the case to court if necessary. Ultimately, an attorney ensures you are treated fairly and receive the full compensation you deserve, allowing you to focus on your recovery.