A third party claim refers to any instance in which a third party is brought into the claim in order to share liability. It is most common in auto accident cases and occurs frequently. This happens because drivers generally choose to file a lawsuit against the other person’s insurance company in order to collect damages. Filing against the other driver’s company is a strategy to keep the driver’s own insurance from having to pay. Since the insurance companies are considered to be third parties in a dispute between the two drivers, filing against the other driver’s company is a third party claim. Essentially, the driver is bringing the insurance company into the dispute to share the other driver’s liability for the accident. Insurance companies expect this to happen and are prepared for it.
How Fault Laws Affect Third Party Claims
Whether a state is a considered a fault or no-fault state can have a major impact on how third party claims work and what drivers are allowed to do. In no-fault states, drivers are required to file against their own insurance first because no driver can be considered at-fault for the accident. This means that a third party claim would only be filed for very serious accidents that surpass the state’s injury threshold. The exact amounts for these circumstances vary by state.
In states like Tennessee, drivers can be considered at-fault for an accident. Accident investigation makes a determination about the percentage each driver was at fault, or how much each driver contributed to the accident. A driver at least 51 percent at fault for the accident is generally considered to be the at-fault driver and assumes the responsibility of paying for the accident.
Once fault is determined, the injured party can decide several things. They may turn to their own insurance company, but insurance companies always try to get money from the at-fault party first. An insurance company may require a client to file a third party claim against the at-fault driver’s insurance company. The insurance company may also pursue payment from the other company directly, but it is more common to file a third party claim. The injured driver’s instance company will then step in to cover an additional costs that the lawsuit does not cover. This keeps the injured driver’s insurance liability low, helping to prevent premium increases.
The Importance of Representation
Car accident cases can become complicated very quickly depending on the severity of the accident. Proving fault and negligence, a requirement for most third party claims, can be difficult if evidence shows both drivers to be partially at fault. Rarely is one driver obviously considered to be 100 percent at-fault. On top of that, most drivers will hire their own attorneys in an attempt to prove that the other driver was at fault regardless of how obvious the fault may seem.
Insurance companies are also to blame for complications. Obviously, no insurance company wants to pay for the other driver. Companies will often try to sidestep or downplay the payments or will try to settle for amounts far less than they may be liable for. An attorney can be a great help in both proving fault and especially in ensuring that payments from third party claims and settlements from lawsuits equal the full amount an injured driver is entitled to.
