Understanding the Difference Between First-Party and Third-Party Claims

When you’ve been involved in an accident or need to file a personal injury claim, understanding the types of claims available can be essential. In many cases, more than one party may play a role in the compensation process, which can complicate matters. Depending on the specifics of the incident and the laws in your state, you may need to file a claim with your own insurance provider or with the insurance company of another party involved.

A first-party claim is when you file a claim directly with your own insurance company. This typically occurs when the coverage you purchased is meant to provide compensation for your losses, such as in cases of property damage or personal injury. For example, if you have collision coverage on your auto insurance and your car is damaged in an accident, you would file a first-party claim with your insurer to cover the repair costs.

A third-party claim, on the other hand, is filed with the insurance company of another party involved in the incident. This often happens when another person is at fault for your injuries or property damage. For instance, if someone rear-ends your car, you may file a third-party claim with their auto insurance to cover your losses.

Some incidents may require you to file both a first-party and a third-party claim, depending on the coverage and liability involved. Navigating this process can be complex, which is why seeking legal expertise is vital.

At 770GoodLaw, we specialize in guiding clients through both first-party and third-party claims to ensure they receive the full compensation they deserve. Contact us today for a consultation, and let our experienced team help you handle your claims with confidence.