Third-Party Car Insurance Claims

If you got into an accident that was not your fault, you will have to file a third-party claim to get your property damage and bodily injuries covered. However, depending on the state the accident was in, you may have to file a third-party claim for property damage only, as everyone pays for their own medical costs in no-fault states. Let’s learn more about third-party claims in car insurance and how they differ from first-party claims (i.e., claims with your own insurance provider).

What Is a Third-Party Insurance Claim?

A third-party insurance claim is a claim you file with someone else’s insurance provider when another driver hits you and the incident results in injuries, repairs, or replacement costs. You file a third-party claim so the other party’s insurer can reimburse you for car repairs, medical expenses, and any other transportation you’ll need while your car is being repaired.

How It Works

The way third-party insurance claims work depends on whether you live in a liability vs. no-fault state. See how fault systems vary by state below.

In no-fault states, everyone files their medical coverage claims under personal injury protection, which also covers lost wages and child care. Still, the at-fault party pays for all of the property damage. In at-fault states, the at-fault party pays for both bodily injury and property damage costs.

Types of Third-Party Claims

There are two types of third-party claims you can file.

• Property damage claims: Property damage includes all damages from the accident, whether to your vehicle or to other property like a fence.
• Personal injury claims: Personal injury claims include your bodily injuries, any wages you lost, and any child care you had to pay for as a result of the accident.

The Claims Process: How to File

Here’s how to file a third-party claim:

1. Collect information. First, gather as much of the following information as you can about the accident itself:
   • The dollar amount of the property damage and injuries you incurred
   • The badge numbers of any police officers you deal with
   • The contact information for everyone involved including their names and insurance providers
   • A copy of the accident report
   • The location, weather, date, and time of day of the incident
   • The names of any officers you dealt with
   • Photos of the damages
   • The vehicle information of everyone involved
   • Who was at fault
2. Get a repair estimate. Obtain repair estimates from several repair shops and include them with your third-party claim.
3. Contact the insurance company. If a car accident wasn’t your fault, contact the other party’s insurance company to file a claim by using the below contact information.

4. File within the statute of limitations. Make sure you file a claim within your state’s statute of limitations for either property damage or personal injury claims. Car insurance claims can take a while, but if you miss the statute of limitations, the third party doesn’t need to reimburse you at all.

5. Get your car inspected. The other party may want to inspect your car or get their own repair estimates. Make sure the inspection occurs at a time and place that’s convenient for you so you can be present.
6. Wait for the settlement. The insurance company will investigate the claim. They will offer you a settlement if they determine that their insured driver caused the accident.
7. Sign the release for damages. If you agree to the settlement amount, sign the release for damages.²
8. Negotiate. If the other insurance company denies your claim, you can file a suit at small claims court. The judge will decide who was at fault and what you’re owed, if anything.³

Pros and Cons

There are pros and cons to filing a third-party claim vs. filing a claim with your own provider, also known as a first-party claim.