A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 18, 2021

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Important facts to know...

  • Your car insurance protects you from financial devastation in the event of a covered incident, and the concept has been around for more than a century
  • Auto insurance is an agreement between you, the client, and the insurance company and is legally enforceable
  • A third-party auto insurance claim is a claim made by another driver against your insurer, and there is no contractual obligation between both sides
  • Your auto insurance company is obliged to inform you if a third-party files a claim against you
  • Third-party claims are most common forms of car insurance claims made, and their prevalence is based the states’ fault or no-fault laws

Auto Insurance has been protecting people from financial losses since the 1900s when renowned assembly lines such as Ford started manufacturing automobiles. But the first car insurance policy was actually put down in 1897.

This means before then people were probably rolling up with their fancy wagons without a drop of insurance, or any other forms of safety precautions. The concept of insurance did exist at the time; it had been around for quite some time.

It was the onset of mass scale assembly of automobiles that catalyzed the growth of the insurance industry to the economic giant we know today.

Since its inception, auto insurance has helped people get out of terrible financial situations and reduced the number of crash fatalities over the years.

Nobody can anticipate car accidents, but car insurance helps us get out of them with minimal financial loss.

It is extremely important to have an auto insurance policy; it’s even illegal not to have one. One thing, though, is that when it comes to car insurance, you shouldn’t have to pay more than you need to.

Compare quotes from various insurance companies before purchasing a policy and save a few bucks!

Third-Party Insurance Claims

If you are involved in an accident with another driver, and they happen to feel like a valid claim could be made, they can follow up with your insurance provider and make their claim. That’s called a third-party car insurance claim.

If a third-party claim is filed against your insurance company due to an accident you were involved in, they will definitely call you to inform you and confirm the occurrence of the incident.

  • Any claim made against the other party’s insurer is a third-party claim.
  • If you get injured at work, the claim made to your employer’s insurer for medical and recovery costs is a third-party claim.
  • Third-party claims can be made based on the presence or lack of no-fault laws.
  • A third-party claim is just a fancy name for filing a claim with the other party’s insurer.
  • There is no contractual obligation between the party filing the claim and the insurer in a third-party auto insurance claim.
  • All the above features of a third-party auto insurance claim are universally applied.

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Filing for a Third Party Auto Insurance Claim

Getting a payout from a third-party car insurance claim is not a walk in the park. It is imperative to gather all the information that you can before filing a third-party auto insurance claim; you are going to need it.

The general procedure of filing a third-party auto insurance claim is as follows:

  • Call the responsible auto insurer as soon as possible. You are supposed to have exchanged insurance information with the other party at the scene of the accident.
  • Give a prompt, proper notice to the insurer. This may be the difference between walking away empty handed and getting full compensation for your losses, so don’t overlook this step.
  • Write a letter to the insurer to follow up your phone call in writing. After that, the insurers claim payment procedures and policies will take effect.
  • The insurance company will not just hand money over to you without a little sweat. They may interview severally so collect all the facts and get your story straight.
  • Give all the relevant information to convince the adjuster why you deserve to be compensated.
  • You may have to employ the services of an attorney if the claim turns into a lawsuit. Gather all the relevant documents to use as evidence in court.

No-Fault States vs Fault States

In a no-fault insurance state, insurance laws stipulate that no matter who is at fault in an accident, you file a claim with your own insurance company. Third-party auto insurance claims are less frequent in no-fault states.

You may be able to file a third-party claim if after making necessary claims with your insurer, your injuries are found to meet the state’s serious injury or monetary threshold.

In no-fault states, drivers are statutorily obligated to carry a minimum level of insurance stipulated by the state.

Unlike in no-fault states, in fault states, you can file a claim with the other party’s insurer without having first to file with your insurance company. The only condition here is that the other party has to be at fault.

Third party auto insurance claims are very common in fault states. The complexity or simplicity of a third party auto insurance claim depends on the disputability of fault.

Adjusters tend to settle claims where their client is clearly at fault swiftly to save costs and avoid going to court. On the other hand, if it’s not clear who is at fault, insurers will thoroughly investigate the claim and even proceed to court if need be.

Bottom Line

It is very unlikely that anything will happen to your car insurance policy, such as policy expiration, without your knowledge. Whether it is a false claim or a legitimate third-party insurance claim, the insurer will always want to get your side of the story. If someone does ever make a first-party claim on your insurance, you are able to cancel that claim as long as it has not been paid out.

False claims will not impede your ability to receive a claim-free discount.

If you suspect foul play, start comparing quotes from other insurers while shopping for a better policy. Use our free comparison tool to get started today.