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.
First-Party Insurance vs. Third-Party Liability
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.
Is Third-Party Liability Required?
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.
