After an accident, you will want to file an insurance claim with your insurance company, or the responsible party’s insurance company, to be compensated for any expenses you incurred. Your claim is the first step toward recovering any costs directly caused by your accident. Expenses such as medical bills, lost wages, or property damage can all be reimbursed by filing an insurance claim.
Let’s take a look at the differences between first-party and third-party claims and how they affect your insurance after an accident.
First Party Claim
A first-party claim is one you file with your own insurance company. In these cases, the claims are contingent on the language of the insurance policy. You might file a first-party claim if your home is damaged in a flood or if your vehicle is vandalized. In these cases, you will make a claim with your insurance company to cover the cost of repairing your home or car. The insurance company will then compensate you in accordance with your purchased insurance policy.
Third Party Claim
A third-party claim is a claim that is filed with the insurance provider of another person or business. If you have been in a car accident caused by another driver, the claim you filed with their insurance company is a third-party claim. Typically, insurance holders will have coverage for third parties who have been harmed as a result of their negligence.
When should you use each claim?
The type of claim filed depends on who is at fault in a given accident. For example, if you are at fault for a car accident, you will have to file an insurance claim with your own provider to cover the damage done to your vehicle. However, if the other driver is at fault, you should file a claim with their insurance provider in order to receive compensation for the damage to your vehicle as well as for any medical expenses you might have incurred.
How does each claim affect my insurance?
Depending on the circumstances surrounding an accident, filing an insurance claim may impact your insurance rates. If an accident is determined to be your fault, then you almost guarantee a spike in your insurance rates. However, in the event that a flood caused by a hurricane damages your home, filing a first-party insurance claim is unlikely to raise your rates.
Seek help from a knowledgeable New York and New Jersey trial attorney
Filing insurance claims can be complicated, especially in situations where blame cannot be placed solely on either party involved in the accident. A knowledgeable personal injury lawyer can provide additional information, so please get in touch with the Kreizer Law Firm to schedule a no-cost case evaluation.
Call 1‑(800)-4-JUSTICE® –1-(800)-458-7842 or contact us online today.