What's the Difference Between First-Party and Third-Party Insurance Claims?

A first-party claim is filed for harm or injury to the insured, while a third-party claim is filed for harm or injury to someone else.

Typically, an insured who suffers a car crash can make a first-party claim for compensation when:

  1. the insured was not at fault;
  2. no one was at fault;
  3. the driver at fault cannot cover the insured's costs; or
  4. the driver at fault has absconded and cannot be found, such as in a hit-and-run crash.

In any of these cases, the insurer may pay the full claim or offer a lower amount.

Dealing with Insurance Companies

Claims are complicated, however, and a history of on-time insurance premium payments does not guarantee prompt payment of the claim in full. The insurer must seek to maximize profits and, for that purpose, the company does what it can to minimize payments on claims or to deny a claim altogether.

After the car crash, the insured also may make a third-party claim against the insurer of the driver at fault. But contract law governs in first-party and tort law in third-party claims, so factual and legal issues can be complex and confusing for anyone who is not an expert. In such cases, the insured especially needs an attorney's assistance.

Get Help from Skilled Personal Injury Lawyers

At Zinda Law Group, our skilled Austin personal injury attorneys can make sure the first-party and third-party claims are filed properly, as well as stop the insurers from taking unfair advantage of the claimant by abusing the process.

Legal counsel and effective advocacy can build comprehensive claims for fair and complete compensation for injuries. All potential personal injury plaintiffs should contact and consult with counsel at their earliest convenience for indispensable guidance and in claiming compensation for their unique circumstances.

Call us today at 800-863-5312 for a free consultation with one of our Austin personal injury lawyers.