How to File a Claim Against Someone Else’s Insurance. If you get into an accident because of another person, that is when you will wish to know how to file a claim against someone else’s insurance. Filing a claim over someone else’s insurance is known as a third party.
You are the third party to the other person and his or her insurance company. All claims will be processed by the other person’s insurer, but do not count on quick payment. To determine that their customer is truly at fault, it might take a long period of time for the insurer to investigate the accident.
How to File a Claim Against Someone Else’s Insurance
Speaking about how to file a claim against someone else’s insurance, you can either file the claim with your insurance company if you have the appropriate coverage or with the other driver’s insurance company. As well, filing a claim with your insurance company is known as a first-party claim, while another person’s insurance is known as a third-party claim.
With regard to first and third-party claims, the insurance laws differ, so it is good for you to understand how both of them work. In a first-party claim, you have a contract that requires your insurance company to fulfill all the conditions stated in your policy. You do not have a direct contract for a third-party claim with the insurance company because their primary obligation is to their own policyholder.
Who Should File an Insurance Claim
Any one of you, included, can file the insurance claim as long as he or she has the appropriate insurance coverage. If you think you are not at fault for the damage to your vehicle, you have the option to file your claim with the other driver’s insurance company or with travelers. These are some things to consider when filing an insurance claim:
- If you file with the other company, you will not be required to pay a deductible. You may be required to pay a deductible and then wait for possible reimbursement from the other driver’s insurance company if you file with Travelers.
- You will likely be provided with alternative transportation or a rental while your vehicle is being repaired by the other company. If you do not have this type of coverage, travelers may not provide a rental car.
- In some cases, the other company may not agree that their driver is 100% at fault and may negotiate to pay a portion of your damages.
- They will not be able to assist you with your claim if you file a claim with the other company.
Every type of insurance carrier is different, as is their policy. You can keep reading through this page to get more information regarding the third-party claim.
What is a Third-party Insurance Claim?
A third-party insurance claim is a process of filing an insurance claim with another driver’s insurance company. it is known as a third party because you’re filing the claim with an insurer you may not have a policy with but the person at fault does. You will be able to file a claim with the person’s at-fault insurer to help pay for your car repairs, transport while your car is undergoing repairs, and your related medical expenses (depending on where you live).
How Does a Third-party Claim Work
All insurance companies handle their claim process in different ways. During a third-party claim, you will likely work with a claim representative or insurance adjuster. The insurance adjuster may gather details about the accident from the insured customer and you (the third party). They may also inspect the damage to each vehicle (in person or via photos) and ask for a copy of the police report.
The adjuster will determine who is at fault for the accident based on their findings. If their insured customer is found to be at fault for the accident, the insurance company may pay your third-party claim. Getting information from a mechanic or body shop is a good way to gauge how much you’ll need for repairs.
The other insurance company may give you the option of working with a shop that is part of their direct repair network. You will have the right to decide on the repair shop to fix your car.
What are the Common Reasons Auto Claims are Denied?
There are tons of reasons why your claim can be denied after a car accident or incident. Well, it also depends on how supportive your insurer will be during the claims process. When your insurer refuses to pay for a claim, each situation can be very confusing and frustrating. Based on the claims adjuster, these are some of the most common legitimate reasons that insurers deny claims:
- Policy Limits: You will have to select the type and extent of coverage you want to buy when you purchase auto insurance.
- Violation of state law: you need a valid driver’s license and some form of financial responsibility to drive legally in most states. Your claim could be denied if your incident happened while you were driving illegally or breaking the law through an auto insurer.
- Miscellaneous reasons: through circumstantial evidence or doubt surrounding an incident, an insurer may deny your claim. That is why it is important to gather enough information and give it to your insurer or third-party insurer.
What to Do If Your Auto Claim is Denied
One of the things you can do if you feel your auto claim was wrongly denied or that you were inadequately compensated is to contact your state insurance department. Ask how to make a complaint and what to do next.
Auto insurance is regulated at the state level, and many states have a special unit set up to deal with these kinds of policyholder issues. If all else fails, and a sufficient amount of money is at stake, you can consider hiring an attorney to represent you.
When should or shouldn’t I file a claim?
It is better for you to file a claim immediately if you are involved in a collision with another driver. In some cases, some people may consider negotiating an out-of-pocket settlement. Sidestepping the claim process may result in unforeseen consequences.
The driver may find additional damage to their vehicle. Moreover, your auto insurance can often help cover property damage or injury expenses and pay for the legal costs. If the situation moves toward that, you should be taken to court.