A good insurance policy provides you with peace of mind. You know if you get into an accident, your insurance will cover any out-of-pocket expenses in an effort to “make you whole” again.
In theory, at least.
The reality is that after an accident, filing an insurance claim can become complex. If it’s a minor accident that you caused, you have to consider whether you want to file a claim, pay your deductible, and assume the risk of having your premiums go up.
When the accident involves another driver, you have to factor in first-party versus third-party liability. That’s when things can get really complicated. You could also face resistance from an insurance company that is reluctant to sign off on a settlement.
When those kinds of complications arise, you’ll want to consult with an experienced Charleston car accident attorney. That lawyer will be in the best position to help you navigate the claims process. It will also help you get a general understanding of the difference between first- and third-party insurance claims.
Defining First-Party and Third-Party Insurance Claims
The major difference between a first-party and third-party insurance claim comes down to a matter of perspective.
When you file a claim directly with your insurance company, you become the first-party.
You’re asking your insurance company to cover your losses that are associated with anything from running into a parking garage pillar to someone stealing something from your home.
When you file a first-party claim, there will usually be a deductible. This is the amount of money you would have to pay before your insurance coverage kicks in. For example, if you have a $500 deduction on car damage and the repair from an accident is $1,000, the insurance company would only pay $500.
Your policy is a contract that obliges the insurance company to make the payment.
A third-party claim would be made against another person’s insurance company. You would make that claim because that person is responsible for your losses. The most common example is when another driver collides with your car. If they are clearly at fault, then their insurance should pay for the repairs to your car and any medical expenses.
In this situation, you don’t have a direct contract with the insurance company. Their obligation is to the third-party, which is their policyholder.
How First-Party Claims Work in West Virginia
Before you file a first-party claim, you need to have a good understanding of your individual insurance policy. Your insurance carrier is only obligated to pay on a claim that is dictated by the policy terms. In other words, if you’re not covered, you won’t see the cash.
After a covered event, such as a fire, theft, storm, or car accident, occurs, you will notify your insurance company and file a claim. Your insurance company will assign an adjuster to review your policy, evaluate your damage, and determine the valuation. In West Virginia, insurance companies are required to act in good faith.
That means they need to conduct a reasonable investigation and settle the claim promptly.
If the claim is denied or undervalued, you have the right to contest the response.
The Process of Filing a Third-Party Liability Claim
When you file a third-party claim, you are requesting that the at-fault driver’s (or third-party) insurance company cover your damages. At the scene of the accident, you should gather the other driver’s insurance contact information. After notifying your own insurance company, you should contact the third-party’s insurance company to file a claim and get a claim number.
As part of your claim filing, you’ll want to submit copies of all your relevant evidence, such as photos, videos, medical expenses, car repair bills, or car replacement value.
That insurance company will also assign an adjustor to investigate and consider the valuation of your damages.
After the adjustor’s assessment, they might offer you a settlement that is less than what you would need to cover your losses. That might occur if the third-party’s policy is the minimum.
For instance, West Virginia law mandates a minimum of $25,000 in property damage liability. If the replacement value of your car is $40,000, you would have to file a civil complaint against the at-fault driver because their insurance will only pay $25,000.
If the insurance company does not believe their policyholder was at fault, they could deny the claim outright. At that point, you’ll want to discuss with your attorney about the options for filing a civil complaint against the insurance company.
When You Might Need to File Both Claims Simultaneously
There could be certain types of accidents when you might need to file both types of claims simultaneously. For example, you might file a claim with your company for collision damage in an effort to get the money fast to make repairs.
If the third-party is found to be at fault, your insurance company could file its own claim with the third-party’s insurance company for that amount.
If the at-fault driver has low limits on their insurance policy, you could activate your underinsured motorist insurance policy to make up for the discrepancy.
Forbes Law Offices Can Assist with These Types of Claims
The legal team at Forbes Law Offices has helped many clients pursue third-party claims.
We’ve taken on many insurers in the pursuit of negotiating a fair settlement. We’re familiar with all the tactics they might deploy, such as asking for unreasonable documentation or offering lowball settlements that won’t come close to covering your losses.
It has been our experience that when you present strong evidence and a firm resolve, the insurance company will fulfill its obligations. We know that filing a third-party claim can be challenging. Our goal is to help streamline that process so that you can get the maximum compensation you are due.
The support offered by Forbes Law Offices begins with a free case review.
Call to schedule your consultation today so we can answer your questions.
