Insurance Claims: First Party vs Third Party

After a car accident, medical bills, lost wages, and property damage can quickly pile up, leaving you struggling to make ends meet. Pursuing compensation through an insurance claim or lawsuit is crucial for getting your life back on track.

In Connecticut, there are two primary types of insurance claims: first-party and third-party claims. The route you take depends on the specific circumstances of your accident and the type of insurance coverage available.

Understanding First-Party Claims

A first-party claim is one that you file with your own insurance company. Because Connecticut is a fault car accident state, where the at-fault driver is financially responsible, this type of claim is appropriate when you are at fault for the accident or when the other driver is uninsured or underinsured.

In Connecticut, drivers are required to carry a minimum of $25,000 per person and $50,000 per accident in uninsured/underinsured motorist coverage. They can also purchase optional forms of coverage to protect their assets in the event of an accident, such as personal injury protection, collision, and comprehensive policies.

Understanding Third-Party Claims

A third-party claim, on the other hand, is one that you file with the at-fault driver’s insurance company. This type of claim is appropriate when the other driver is clearly at fault for the accident and has sufficient insurance coverage to compensate you for your losses. If the driver has valid insurance, this is typically the first type of claim that you will file in Connecticut.

To file a third-party claim, you will need to gather evidence of the other driver’s negligence, such as a police report, witness statements, and photographs of the accident scene. You are also required to provide documentation of your damages, including medical bills, lost wages, and property damage estimates. The at-fault driver’s insurance company will then investigate the claim and determine whether you are eligible for compensation based on their assessment of liability and damages.

When to File a First-Party Claim vs a Third-Party Claim

Deciding whether to file a first-party or third-party claim can be a complex decision. In general, if the other driver is clearly at fault and has sufficient insurance coverage, a third-party claim is the best option. This allows you to seek compensation directly from the at-fault driver’s insurer, which can often result in a higher settlement than a first-party claim.

However, if the other driver is uninsured or underinsured, or if fault is unclear, a first-party claim may be necessary. In these cases, your own insurance policy will provide coverage for your damages, up to your policy limits.

In many cases, neither claim would yield the amount of compensation that you actually deserve. In these situations, you may file a personal injury lawsuit against the at-fault driver in civil court.

Schedule a Consultation for Guidance with Your Insurance Claim

Whether you are dealing with a first-party or third-party claim, having skilled legal representation can make a significant difference in the outcome of your case. At Lynch, Traub, Keefe & Errante, we fight to protect your rights and maximize your compensation.

Our New Haven motor vehicle accident attorneys have the experience and knowledge to navigate complex insurance laws and negotiate effectively on your behalf. Contact us today at (203) 333-3333 to speak with a lawyer who will put your interests first.