Good luck and careful driving isn’t always enough to keep you safe on the roads. Even the most skilled and responsible drivers can get rear-ended or t-boned by a distracted driver. That said, when you’re involved in an accident that isn’t your fault, you might not have to file a claim with your own insurance company. You might be able to file a third-party insurance claim against the at-fault driver’s auto insurance coverage.
What Is a Third-Party Claim?
A third-party car insurance claim is a claim that you file with an at-fault driver’s car insurance company, typically under that driver’s liability coverage. In this scenario, the two primary parties are the insured driver and the insurance company and you’re the third (or outside) party.
Examples of Third-Party Claims
Third-party claims can arise in different situations. Here are a few examples.
You're Hit by Another Driver
You’re stuck in stop-and-go traffic. The driver behind you is texting and hits the back of your car. You aren’t seriously injured, but you have a stiff neck and back for several weeks and your vehicle is damaged.
You might be able to rely on your own health insurance and collision coverage to cover your medical bills and vehicle repairs, but when the other driver is clearly at fault, you should try to file a third-party claim against that driver’s policy. Filing a third-party claim allows you to avoid having to pay a deductible and minimizes the risk of your insurance premiums going up when it’s time to renew your policy.
You're a Passenger
You’re a passenger in your friend’s car when your friend collides with another car. You’re hurt badly in an accident that clearly isn’t your fault. You’ll probably want to file third-party insurance claims against both drivers’ insurance policies and let the insurance companies sort out who was at fault for the accident.
Your options might be more limited if you’re riding in a car with a spouse or family member. Most insurance policies cover the person named on the policy, that person’s spouse, and relatives living in the household. If you’re covered under a policy, you can’t make a third-party claim against it. But you could still potentially file a claim against the other driver's insurance policy if that driver caused the accident.
You’re Hit by an Employee
You’re stopped at a stop light when a delivery truck driver slams into you. You should file a third-party claim against the insurance policy of the delivery driver and the driver’s employer. Employers can be vicariously liable for the actions of their employees when accidents happen within the employee’s scope of employment. The rules for when an employee is acting within the scope of employment are complicated, and many employers try to classify people who work for them as independent contractors to avoid liability. Still, it’s worth filing a claim against the driver’s personal insurer and the employer’s business insurance and let the two companies sort out which one has to pay for your damages.
Can I File a Third Party Claim in a No-Fault Car Insurance State?
Most states have a fault-based car insurance system. In fault states, you can bring a third-party claim against the liability insurance policy of the driver who caused the accident. For example, if a driver hit your parked car, you can file a claim with that driver’s insurance company to cover the cost of fixing your car.
If you’re injured in an accident in a no-fault state, you must start by filing a claim with your own insurance (called “personal injury protection” (PIP) coverage). Your PIP will cover a portion of your medical bills, lost income, and out-of-pocket expenses, no matter who was at fault for the accident, but it won’t compensate you for pain and suffering.
PIP doesn’t pay for property damage. To get your car repaired in a no-fault state, you’ll have to bring a third-party claim against the at-fault driver.
You can also step outside the no-fault system and file a third-party insurance claim in a no-fault state when your medical expenses exceed a certain amount or your injuries meet the state’s definition of “serious.” Thresholds vary from state to state, but most aren’t very high, putting third-party insurance claims right back in play, even in a no-fault state.
How to File a Third-Party Claim
Now that you know when you might file a third-party claim, here are some basics on how to effectively file a claim.
Contact Your Own Insurance Company
As a first step, you should notify your own insurer about the accident within a day or two. It’s important to contact your insurer even if you think the other driver is at fault. You may need to rely on your own coverage, which you can’t do unless you report the accident.
Notify the Other Insurance Company
Filing a claim may sound complicated, but it really just involves putting the other driver’s insurance company on notice that you’re making a claim for accident-related injuries and losses. Most insurance companies allow you to start a claim online or you can call and talk with an agent.
Only Offer Basic Information About the Accident
When you start your claim, be prepared with this information:
- your contact information
- the other driver’s name and insurance policy number, and
- the date and location of the accident.
If you have to describe the accident, keep your description simple and focused on the other driver’s fault. Don’t provide details about your injuries. Simply say that you’ll provide more information and medical records in a demand letter.
Learn more about talking to the other driver’s car insurance company.
Follow Up With a Claim Notification Letter
After you start your claim, it’s smart to follow up with a written letter. Simply repeat what you told the claim agent or submitted online. Send the letter certified and keep the receipt.
Don’t Delay
File your claim promptly. Most insurance policies require claimants to report accidents within a reasonable time, often a few days. You’ll want to make your claim when your memory is fresh and evidence is available. If you wait too long, you might miss the deadline to file a lawsuit, called the “statute of limitations.”
Should I Hire a Lawyer?
In some cases, you might be able to handle your own insurance claim. Other cases benefit from the experience and expertise of a lawyer. Ask yourself:
- Is fault clear?
- Are my injuries serious?
In some cases, fault is clear. For example, maybe the other driver ran a red light or rear-ended you. In other cases, fault is less clear. If you find yourself in a “he said, she said” situation, particularly when the police report is vague about fault, a lawyer can help you.
You’ll also want to at least talk to a lawyer whenever you’ve been injured. You might be able to handle a claim involving minor injuries and some property damage, but if you’ve sought medical treatment for your injuries, a lawyer can help you get fair compensation.
A lawyer can help you investigate your case and present the facts in the best possible light. A lawyer can also help you stand up to the insurance adjuster, who will likely try to minimize or even deny your claim.
If you’re thinking about filing a lawsuit, a lawyer will better understand the rules and procedures involved with going to court, including preparing legal paperwork, exchanging interrogatories, and dealing with proof issues on disputed questions, like the seriousness or your injuries or your conduct in the accident.
Learn more about hiring a car accident lawyer.
What Comes Next if I Don’t Hire a Lawyer?
If you decide to represent yourself, you’ll need to get to work gathering the information you need to send an effective demand letter. Your demand letter should:
- describe how the accident happened
- detail your injuries
- explain why the other party was at fault for the accident, and
- demand a fair amount to compensate you for your injuries.
Think carefully about how to value your claim. Your payment will have to cover future medical care and expenses—there is no second drink at the water fountain on compensation, so to speak. Here are some sample demand letters to get you started.
If you start the car accident settlement process and realize you might be in over your head, reach out to a lawyer. But act fast. The statute of limitations clock, which sets a time limit on filing a lawsuit, is ticking away.
Whether you’re represented by a lawyer or not, document all communications related to your claim, don’t procrastinate, and get help if necessary. When the time is right, you can connect with a lawyer directly from this page for free.