If you are hurt in a car accident that wasn’t your fault, you can make a third-party car insurance claim under a driver liability policy. So, how to file a third-party car insurance claim? Why your car claims are denied? What to do if your auto claim is denied? Below will show you basic car insurance types for claims.
So, how to file a third-party car insurance claim? Contact your own auto insurer as soon as possible after an accident, regardless of who is at fault. Your insurance provider can negotiate on your behalf with the other driver’s insurance provider and assist you in making a third-party auto insurance claim.
According to state regulations and accident specifics, insurance companies determine fault. You might also be held partially responsible for the accident, depending on how it happened. That’s why it’s a good idea to work with your own auto insurer on any claim.
What is Third-party Car Insurance Claim?
Third-party insurance claims are filed with someone else’s insurance company and protect the person who has suffered an injury or loss (both the driver and their passengers) as a cause of the negligent actions of another driver.
In a third-party car insurance claim, the at-fault driver’s insurer will only cover damages once the investigations establish that their insured was responsible for the accident, and the reimbursement may not be sufficient to cover the entire loss.
Regardless of fault, your personal injury protection (PIP) helps cover medical expenses up to the coverage limits on your car insurance policy.
The settlement with your insurer can help you pay for your medical bills that your health insurance company does not cover.
In cases when the at-fault driver’s coverage limit is not enough to help pay for your repairs, you may be able to use your insurance policy, and the same applies to your related medical expenses. Read more: Average Cost of Car Insurance
How to File a Third-party Car Insurance Claim?
There are circumstances where you might want to work with your own auto insurance to solve the problem, even if someone else caused the crash:
In States With No-fault Insurance
If you have no-fault insurance, you would report your medical expenses following a car accident to your own insurer. As long as your auto insurance policy’s coverage limits allow, personal injury protection (PIP) helps pay for your medical costs. Why is Car Insurance So Expensive? Personal injury protection (i.e., no-fault insurance) is required in some states and optional in others. Explore the answer: Average Cost of Car Insurance for 18-Year-Olds
You typically file a third-party claim for property damage following an auto accident in states with no-fault insurance.
In States Without No-fault Insurance
If you live in a state that doesn’t offer no-fault insurance, you can typically file third-party insurance claims for property damage and medical expenses.
Third-party Property Damage Claims
After a car accident, you can use the at-fault driver’s auto property damage liability coverage to help cover the cost of your vehicle’s repairs if you submit a third-party claim for property damage. You may be interested: How Much Does General Liability Insurance Cost?
Keep in mind that the at-fault driver’s policy will only help pay for your repairs up to their coverage limit. Consider the following scenario: Your car is valued at $30,000 and has been deemed a total loss by the other insurance company. You might have to pay $5,000 out of pocket to replace your car if the at-fault driver’s insurance only covers $25,000 in damages.
You might be able to use your own auto insurance if this were to occur. If it’s offered in your state, underinsured motorist property damage coverage could assist in making up the difference.
If your policy includes collision coverage, you also have the choice of making an auto insurance claim with your own insurance provider. Regardless of who is at fault, your collision coverage helps pay for the repair of damage to your car. Keep in mind you’ll have to pay your deductible. Your insurance provider may go after the other driver or their insurance provider to recover the money paid out under your collision coverage and your deductible if you are struck by another driver who is at fault for the collision.
Third-party Injury Claims
If you have injuries or related medical expenses after a car accident, the at-fault driver’s auto bodily injury liability insurance may come into play (in states without no-fault insurance). Once more, the at-fault driver’s insurance will only cover the maximum amount of coverage. Any additional medical expenses you incur beyond their insurance’s cap may fall under your financial responsibility.
Your own auto insurance policy might include coverage that assists in paying for your injuries following a collision. After an accident, your (and your passengers’) medical expenses may be covered if you have medical payments coverage. Additionally, if the at-fault driver has inadequate insurance, underinsured motorist bodily injury coverage may assist with your medical expenses.
In general, though, no-fault/PIP claims are only eligible for payouts of $2,500 to $10,000 per accident. And PIP medical coverage only provides 80% of the total amount of your bills and 60% of your lost wages, up to a $10,000 policy limit.
Questioning how long does GAP insurance last? Maybe you’re curious about your GAP Coverage’s cancellation or refund options. We’ll address all of your GAP Insurance questions in the paragraphs that follow. Read Now!
Common Reasons Auto Claims Are Denied
It can occasionally be very frustrating to deal with auto insurance claims. Common claim denial reasons include:
The Accident Was Avoidable Or Preventable
If the insurance provider believes the accident was preventable—for instance, by allowing an unlicensed driver to operate your car—it may reject the claim.
You Didn’t File a Claim in Time
Customers who file claims as soon as possible are preferred by insurance companies. In any case, it is advisable to act quickly before the damage becomes obscured or the witnesses to the accident vanish. States may establish strict time limits for filing claims, which may range from one to twenty years.
Delaying Medical Care
You might not be aware of the full extent of your injuries right away following an accident. Full coverage car insurance is a great choice especially choosing car insurances. But if you put off seeking medical attention for injuries for too long, the insurance provider might be suspicious of the claim, which could lead to an investigation or even a denial.
After a collision, it’s critical to state the facts. If you are unsure of what occurred, refrain from making assumptions or choosing to assign blame. Additionally, the claims procedure is not the time for chattiness. Don’t divulge more than is necessary; doing so could affect how your claim is resolved.
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What to Do If Your Auto Claim is Denied?
Ask for the written explanation of the denial if your auto insurance claim was rejected. You should be aware of the specific grounds for the claim’s rejection and, if applicable, how to appeal the decision. They might be mistaken, or it might be a valid denial—for instance, if you didn’t have the appropriate coverage for the claim.
Examine the available evidence, and then submit a letter outlining how it conflicts with the insurance company’s conclusion. If contesting the denial on your own makes you uncomfortable, you might want to seek legal counsel from a lawyer.
How does car insurance work? The purpose of having auto insurance is to safeguard your finances in the event of an accident. Auto insurance can assist in paying for repairs to your car and medical care for your injuries if a tree falls on your car or you are the victim of a hit-and-run. It also provides liability coverage, in case you are at fault for an accident that causes injury or property damage to others.
Understand Basic Car Insurance Types for Claims
It’s a good idea to read your auto insurance policy after a car accident to confirm your coverage. Your insurance agent may have already told you what you are—and aren’t—entitled to, but check for yourself. It will pay off to have a reputable insurer in this situation.
The same fundamental coverage types are provided by all auto insurance companies. State-specific requirements differ from the optional ones, which can include some coverage types that are smart investments.
The bare minimum level of protection for all vehicles is liability insurance. If you accidentally run over a garden gnome in someone else’s yard or collide with a person, a car, or both, you must have this. Liability insurance pays for a victim’s claims for damages such as medical expenses, property damage, lost wages and pain and suffering.
Although the minimum amounts required by each state vary, almost all of them do. California car insurance, for example, is a minimum of only $15,000 in injury coverage for one person in an accident. In Florida, the minimum amount of liability insurance for one person injured in an accident is even lower, at $10,000. With rising medical costs and the litigious society of today, that coverage might prove to be horribly insufficient. Read more about liability insurance costs.
Expenses above your auto insurance may be recovered through litigation. A high deductible on your auto insurance is a way for people with savings and assets to properly protect themselves and their assets.
If you are sued for something covered by your policy, like a car accident, liability insurance also covers the cost of your defense. How Much is Car Insurance for a 16-year-old
If you have more than $500,000 to protect, you may want to look into getting an umbrella insurance policy. You may want to know: How Long Does It Take to Get Car Insurance?
Collision insurance is optional unless it’s required for your car loan or lease. This insurance covers your car damage in the event that you hit an object such as a pole or another car. According to the Insurance Information Institute, collision coverage is carried by about 75% of drivers with auto insurance.
Collision insurance is usually packaged with comprehensive coverage, so expect to buy them together. Unless it’s required for a car loan or lease, comprehensive coverage is also not mandatory. It includes coverage for theft, fire, hail, vandalism, and other unforeseen risks like running over a deer or driving through water that hides an overflowing creek. Check for How to Get Car Insurance Before Buying a Car?
No-fault Auto Insurance Laws
No-fault auto insurance laws in some states mean that there’s no need to determine who’s at fault in order to receive insurance payment for smaller injury claims. Instead of filing a lawsuit, each party is compensated by their own insurer. These claims are covered by personal injury protection.
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Personal Injury Protection
In most cases, no-fault laws go hand in hand with personal injury protection (PIP). Regardless of who was at fault for the collision, it pays for medical expenses. However, if there were significant injuries or fatalities as a result of the accident, no-fault laws do not completely remove the possibility of being sued.
True “no-fault” accidents are extremely uncommon. If an accident doesn’t happen in a no-fault state, each of the parties involved will share some of the blame, with one of them typically being found primarily at fault. Check for What Age Does Car Insurance Go Down?
How Do I Go About Filing a Claim With the Other Driver’s Insurance Company?
You can call the other party’s insurance provider to submit your claim if you have the other party’s information. Some businesses might also provide online claim reporting. If you have an insurance agent, he or she might be able to walk you through this process or give you more information.
How Long Will It Take for the Other Insurance Company to Pay Me?
The claims management procedure varies from company to company. Less complicated claims, in which everyone cooperates and there are no questions about who caused the accident or the amount of damages being claimed, typically take the least amount of time.
Do I Need to Have My Vehicle Repaired at a Place Identified by the Other Insurance Company?
You have the right to have your car repaired at the shop of your choice, regardless of who is responsible for the damages to your car. The other driver’s insurance company should be notified right away if your car is not safe to drive so they can start the claim procedure.
Will the Other Driver’s Insurance Company Pay for My Rental Car?
You might be given a rental car or other form of transportation if the insurance company of the other driver has agreed to pay for your damages. Generally, there are guidelines around how long vehicle repairs will take, so please check with the other driver’s insurance company to determine if there are any requirements they may have prior to you renting a vehicle.
When all the necessary repair parts have arrived at the repair facility, for instance, some insurance companies may want you to drop off your car for repairs at that point, when you would also get a rental car.
Let the insurance provider for the other driver know if your car isn’t fit for driving so they can have yours inspected right away. Additionally, if your car was towed to a storage facility, you might want to inform them as soon as possible. In order to avoid any potential delays or additional costs, it might be best to move your vehicle to the repair facility of your choice because storage fees accrue on a daily basis.
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What If I Don’t Agree With the Amount the Other Driver’s Insurance Company Offers Me for the Damages to My Vehicle?
Share that information with the other driver’s insurance company as soon as you can if the other driver’s insurance company has agreed to pay for your damages and you have an estimate from a repair shop of your choice, your vehicle cannot be repaired, or you have done research to determine the value of your vehicle. If your car can be fixed, the other driver’s insurance company may haggle over the cost of the fix with your shop.
If your vehicle is not repairable and you believe that the vehicle’s value is greater than the settlement offered by the other driver’s insurance company, you may attempt to negotiate the amount with them. Your state’s insurance department is one possible resource if you are unable to come to an agreement.
Summary: How to File a Third-party Car Insurance Claim?
You could file a third-party auto insurance claim based on the liability insurance policy of the driver who was at fault if you were hurt in a car accident that wasn’t your fault. Once it is established that the other driver’s insurance company’s driver was indeed at fault for the collision, negotiations will start.
You ought to get in touch with your auto insurance provider as soon as you can following the collision, whoever was at fault. In order to help you file third-party auto insurance claims, your insurance company will work with the insurance companies of other drivers on your behalf.
Based on the accident’s specifics and state regulations, the insurance company determines the accident’s cause. You also have obligations based on the circumstances of the accident. This is why it is a good idea to cooperate with your auto insurance company on any claim.
If you have any questions, please leave a comment. KV Auto tries to give you the best car industry information. Thank you for reading.