Navigating the Third-Party Claim Process
The thought of filing an insurance claim can give anyone a headache. The process is rarely easy, even if you’re friends with the insurance adjuster. So just imagine the process of filing a third-party insurance claim.
Now you’re dealing with a stranger’s insurance provider and the steps can be complicated. If you’re injured in an accident and seeking compensation from the at-fault party’s insurance provider, here’s what to know about filing a third-party claim.
Understanding a Third-Party Insurance Claim
Filing with your insurance company is known as a first-party claim. Since you’re the policyholder, it’s a first-party claim. If you’re wondering about second-party claims. Your insurance company is the implied second party.
When you don’t have a policy but are filing a claim with an insurance company, it’s known as a third-party claim. You typically file a third-party insurance claim against the individual responsible for the accident insurance company. Your claim is for any damages you received that are caused by the policyholder’s negligence.
So, if you’re filing a third-party insurance claim, what damages can you list?
This typically depends on the type and severity of the accident but typically include medical costs, property damage expenses, and lost income. Depending on the type of insurance, you may also be able to include non-economic damages like pain and suffering.
Steps for Filing a Third-Party Claim
Being involved in an accident can leave you injured and feeling confused. However, if your injuries aren’t too severe, exchange insurance information with the at-fault party. If you decide to file a third-party claim, you know who to contact.
Otherwise, tracking down someone’s insurance provider can be difficult. You may need to wait a week or so before you can pick up your accident report. Your accident report should include everyone’s insurance information.
Contact the Insurance Provider
As soon as possible, contact the insurance company. Waiting to report the accident can make it harder to successfully resolve your claim. You can notify the insurance company before receiving a copy of your accident report.
You’re not filing a claim, only starting the initial process. Don’t discuss any details about the accident or your first-party claim with the insurance adjuster. Wait to go into details until you file your claim.
Calculate Your Damages
Your damages are losses you sustained in the accident. These are usually divided into financial (economic) damages and intangible emotional (non-economic) damages. Your financial damages are pretty easy to calculate. You have bills and receipts. Non-economic damages are intangible so you can’t rely on price tags.
However, using either the per diem or multiplier method, your attorney can help you calculate the value of your non-economic damages.
Submit Your Third-Party Claim
Once you have your supporting evidence and calculated your damages, it’s time to submit your third-party claim. Working with the insurance company, you’ll review your claim and hopefully reach an agreement.
If you can’t agree on a settlement, your third-party claim can head to civil court. If your case goes to trial, a judge or jury will decide your award based on the merits of your claim.
How At-Fault and No-Fault Insurance Can Impact a Third-Party Claim
Most states follow at-fault insurance rules, which is when the at-fault party’s insurance covers damages stemming from the accident. As long as you’re not responsible for causing the accident, you shouldn’t have a problem filing a third-party insurance claim.
Some states, around 12 or so, use no-fault insurance standards, but this doesn’t mean no one is ever responsible for causing an accident. Instead, everyone turns to their insurance to cover most or all of their damages. No-fault insurance has two parts, and one part only covers property damage.
If you have liability insurance, your property damage isn’t covered. Liability insurance only covers the other driver’s property damage if you’re responsible for causing the accident. If you have full coverage, your property damage should be covered.
The second part of no-fault insurance is PIP (personal injury protection). PIP covers most of your medical costs, up to the policy’s limits. The insurance can also cover your passengers’ medical costs if they’re injured in an auto accident. If your injuries prevent you from returning to work, PIP may even cover your lost wages.
Okay, so your no-fault insurance only covers some of your damages so are the remaining expenses coming out of your pocket? The answer may be no. If your insurance caps kick in before covering your damages, you should be able to file a third-party claim. You follow the above-mentioned steps but be careful when calculating your damages.
You can’t file a third-party claim for damages already covered by your no-fault insurance provider. Your damages can only list those not covered by your policy. If you file a claim for the same damages twice, you may be guilty of insurance fraud.
What About Comparative Negligence
Comparative negligence is another insurance law followed by several states. The rule allows more than one individual to be responsible for causing the accident. Either the insurance adjustor, a judge, or a jury assigns blame. As long as you’re not more than 50% responsible for the accident, it shouldn’t affect your ability to file an insurance claim.
Some states have comparative negligence rules that allow someone to file an insurance claim as long as they’re not more than 99% responsible for causing the accident.
So, if you’re assigned a percentage of the blame and file a third-party insurance claim, how much will you receive? Your settlement amount depends on the damages listed in your claim. But an example of how comparative negligence works is as follows.
If you’re assigned 25% of the blame and receive $100,000 from your third-party claim. Your check will be for $75,000.
Talk to an Attorney About Your Third-Party Claim
Damages from accidents can be extensive, and your insurance may not cover everything. If this applies to your situation, you may be able to file a third-party insurance claim. Your attorney can review your claim and help you navigate the steps, reducing the risk of being left with added expenses.
Working with a knowledgeable attorney can provide clarity and support throughout the process. They will advocate for your best interests, helping you secure the compensation you need to cover all your damages.
