First-Party Claim

If you or your loved ones have been injured in a car accident due to someone else’s negligence, an experienced attorney from our car accident law firm can help you understand the different types of insurance claims that protect your rights or provide compensation. In this segment of our legal glossary, here is an explanation of a first-party claim.

What Is a First-Party Insurance Claim?

A first-party claim is a request made by the policyholder (you) to your own insurance company for compensation after an insured event occurs. Essentially, you are the “first party,” and your insurance provider is the “second party.” By filing this claim, you’re asking your insurer to fulfill the terms of the coverage outlined in your policy agreement.

The Parties in a First-Party Claim

A first-party claim only involves these two parties:

• The policyholder—the individual or business purchasing the insurance coverage
• The insurance company—the provider responsible for compensating for covered losses

Coverage in a First-Party Claim

First-party claims cover events specifically outlined in your insurance policy. Some typical areas include:

• Damage to your vehicle (e.g., accidents, natural disasters, or vandalism)
• Medical bills or Personal Injury Protection (PIP) in no-fault states
• Property damage due to covered perils (e.g., fire, theft, or weather events)

It’s important to familiarize yourself with your policy because coverage limits, deductibles, and exclusions depend on your personal agreement with your insurer.

Car Accidents and First-Party Claims

Imagine you’re in a car accident where no other vehicle was involved, such as skidding on ice and hitting a guardrail. Since no third party is at fault, recovering repair costs would involve filing a claim with your own insurer under collision coverage.

Similarly, if you experience injuries in an accident, your health insurance or PIP benefits could cover medical expenses, regardless of whether another driver is involved.

What Is the Difference Between First-Party vs. Third-Party Claims?

Understanding how insurance claims work is crucial for protecting yourself after an accident.

First-Party Claims

This type of claim is filed with your own insurance company and focuses on recovering costs like vehicle repairs, medical expenses, or property damage covered by your policy. It’s usually a straightforward process, since it only involves you and your insurer.

Third-Party Claims

A third-party insurance claim is filed against someone else’s insurance and requires proving that the other party was at fault. It’s common in car accidents where another driver is responsible for the damage or injury.

What Is General Liability Insurance in a Car Insurance Policy?

A liability claim is a type of third-party insurance policy that covers you financially if you’re responsible for causing injury or property damage to someone else (the third party).

Here’s an example to clarify the distinction. If someone rear-ends your car, you’d file a third-party claim with the other party’s insurance company. However, if the accident was your fault or didn’t involve another driver, a first-party claim on your own insurance policy would be your primary route to compensation.

How Can a Car Accident Lawyer Help Me with a Personal Injury Claim?

The first-party and third-party claim processes don’t have to be overwhelming. If you’re unsure about filing a first-party or third-party claim, or struggling with insurance jargon, an experienced personal injury attorney from our law firm can make it easier. When someone else’s insurance provider is involved, you don’t have to deal with paperwork, negotiations, or disputes alone.

Reach out for a free consultation to explore your options for seeking compensation you deserve.