Difference Between First-party & Third-party Insurance Claims

When a car, truck, motorcycle, or another type of accident threatens to disrupt your life, you need prompt legal help. Talking with insurers, negotiating claims, and navigating legal pitfalls can be difficult.

Are you filing a first or third party claim?

A knowledgeable car accident lawyer in Houston can swiftly assess the facts of your accident and determine what type of claim you need to file to help you recover fair maximum compensation when your accident was caused by the negligent or reckless actions of another driver.

What is a first-party claim? 

The first-party is the insurance policyholder. The second party is the insurance company. When you file a claim with your own insurer for compensation after a car accident, you are filing what is known as a first-party claim.

What is a third-party claim?

So, if a first-party claim involves the policyholder and the insurance company, who is the third party in a third-party claim? Typically, third-party claims revolve around a liability issue with another person. This third person is neither the policyholder nor the insurer. For example, imagine you are riding as a passenger in a vehicle when suddenly the car is hit from the side.

Unfortunately, your own insurance does not provide full compensation for the extent of your injuries. In this scenario, you would have the option of filing a third-party claim.

How does filing a claim affect your insurance in Houston Texas?

Filing a claim is not always in your best interest. Whether you should or should not file a claim depends on the facts of your case. In the event that there was minor or no damage to your car, you should not file a claim. However, if you or anyone else sustained injuries, talk to a lawyer about filing a claim.

Prior to filing, however, you should review your policy and ensure that you fully comprehend how your coverage works. Then, consult with a lawyer about what your next step should be. Your insurance rate is affected by certain factors such as whether you were at fault, and if you have a history of car accidents (fault or no-fault). If it is your first no-fault accident, your rate may be unaffected.

Expect a rate increase if you are filing for a second or third claim, however.

Contact an Auto accident injury lawyer in Houston today

Ryan A. DeHoyos focuses on helping accident victims obtain compensation for medical expenses, lost wages, pain and suffering, and other damages.

Call (832) 745-4878 or contact us online to schedule a consultation to discuss your case with a skilled personal injury lawyer today.