What is Third-Party Liability in a Car Accident?
Chances are that most people will be involved in at least one accident during their life. While car accidents can range from minor to severe, even minor accidents can end up costing thousands of dollars when you add up medical bills, lost wages, pain and suffering, and property damage.
Just as it is important to understand what to do immediately after a car accident, it is also essential to understand the different types of auto insurance policies you can get and what these policies cover in the event of a car accident.
When an individual obtains an insurance policy through their insurance company, they are covered in the event of an accident.
Third-party liability is a type of insurance policy in which the insurance will only cover damages that occurred to another person involved in an accident with the insured driver. To collect compensation after a car accident, the injured party would file a third party claim with the at fault driver’s insurance.
For example, if a driver (first party) has third-party liability insurance and they get into a car accident with another vehicle, the injured passengers (third party) in that vehicle would be able to file a third-party liability claim with the driver’s insurance company (second party). In any case, the insured driver will have to cover their own damages, as the insurance company is only required to compensate the third party.
In most states, third-party liability is the minimum type of insurance that automobile drivers must have. There are two types of auto liability insurance: bodily injury and property damage. The first covers things such as medical bills, medications, and emotional damages while the other covers costs for damages to the automobile or other property.
These expenses can rack up faster than you think after an accident. That’s why it is so critically important to talk with an attorney after you’ve been involved in an accident.
Insurance companies may try to avoid paying settlements to someone who has been hurt in a car accident. If you’ve been involved in an accident and need help fighting for your rights to compensation, don’t hesitate to contact Johnson, Vorhees & Martucci. We serve clients across Missouri, Arkansas, Kansas, and Oklahoma, and we’re very familiar with third party liability. While insurance companies will be looking out for their own best interests, we will be looking out for yours.
Contact our firm at (833) 600-0125 to get a free consultation.