First Party vs. Third Party Insurance Claims

First Party vs. Third Party Insurance Claims

In the majority of car accident and other personal injury cases, an insurance company is involved. This is typically the case in motor vehicle accidents, pedestrian accidents, bicycle and motorcycle accidents, medical malpractice, slip and fall cases, premises liability, and negligent security cases. After all, this is why people and businesses buy insurance.

Insurance claims fall into two categories: first-party and third-party claims. So, what’s the difference between the two claims? With a first party claim, you’re filing a claim with your own auto insurance company. But with a third-party claim, you’re filing a claim with another person’s or business’s insurance provider.

Filing a Third-Party Claim

Texas is a fault insurance state, which means that if you cause an auto accident, you will be held liable for the damages incurred by the other driver. Likewise, if you’re involved in a crash and the other driver is at fault, he or she will be responsible for all of your damages, such as medical bills, pain, and suffering, and lost income. Typically what happens in this scenario is a third-party claim is filed against the at-fault driver’s auto insurance.

On the other hand, if you caused a car accident, or if a tree fell on your car during a storm, you would file a claim against your own auto insurance. This would be a first party claim. Or, if you were injured while shopping at a superstore, you would file a claim against the store’s insurance – another example of a third-party claim.

Filing a Claim Promptly

If you are injured in a car accident, while visiting a store or other business, you need to report it to the insurance company promptly, preferably within 24 hours. This way, the insurance company can quickly open up an investigation before valuable evidence is lost.

If you’re able, we recommend taking pictures, getting the contact information of witnesses, writing down a detailed account of what happened and quickly contacting our firm before getting the insurance company involved.

To file a claim for compensation, contact our Plano personal injury firm today.

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