Third-Party Claim
A Third-Party Claim is a claim you file against the at-fault driver's insurance policy. You don't pay a deductible, but you also don't have policy rights with that carrier — including the appraisal clause — which can make negotiation harder.
More detail
- If the at-fault carrier is being unreasonable, you can often switch to a first-party claim under your own policy and let your insurer pursue subrogation against the at-fault carrier.
- Some states require third-party carriers to deal in good faith with claimants under unfair-claims-practices statutes, even without contractual privity.
Related terms
First-Party Claim
A First-Party Claim is a claim you file against your own insurance policy (under collision or comprehensive coverage). You pay the deductible but typically have access to the appraisal clause and other policy protections.
Appraisal Clause
An Appraisal Clause is a provision in most US auto insurance policies that lets either you or the insurer demand an independent appraisal when you disagree on the value of a totaled vehicle. Each side selects a competent, independent appraiser; the two appraisers select an umpire; and the resulting valuation is binding.
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