Auto Insurance Claims: Third-Party Steps To Success

If you've been in a car accident that was caused by another driver, you may need to make a third-party insurance claim. This is a claim filed with the other driver's insurance provider to cover your accident-related expenses, such as repairs to your car or medical bills. The process for making a third-party claim involves gathering information about the other driver and the accident, contacting the insurance company, and potentially working with a claims adjuster to determine fault and calculate repair costs.

Gather information at the scene of the accident, including the other driver's insurance details and photos of the damage

Gathering information at the scene of the accident is crucial for supporting your third-party auto insurance claim. Here are the steps you should take:

Gather the Other Driver's Information:

• Obtain the other driver's name, address, contact information, driver's license number, and insurance details, including their insurance company and policy number.
• Record the make, model, year, colour, and license plate number of the other vehicle(s) involved.

Document the Accident Scene:

• Take photos of the accident scene as soon as possible, capturing the position of the vehicles and the condition of the road. Get close-ups of dents, scratches, broken windows, deployed airbags, busted tires, and leaking fluids.
• Capture the accident scene from different angles and perspectives to provide a comprehensive view.
• Include photos of the surrounding area, such as skid marks, broken glass, traffic signs, road debris, and weather conditions, as these details can help explain the cause of the accident.
• If possible, take photos with and without the flash to ensure the details are clear and visible.
• Take photos of your injuries and any medical documentation, such as X-rays or MRIs, to support any injury claims.

Exchange Information with Witnesses:

• Collect the names and contact information of any witnesses present at the scene.
• If you are unable to take photos or are injured, you can delegate the task of photography to a passenger, witness, or loved one.

Remember to prioritise your health and safety first. If you are injured or shaken, focus on getting the necessary medical attention, and then proceed with gathering information and documentation.

Contact your own insurance company, who may file the claim for you

Contacting your insurance company is a crucial step in the aftermath of a car accident, even if you plan on filing a third-party claim with the other driver's insurance. While it may seem counterintuitive to reach out to your own insurer when the other driver is at fault, there are several benefits to doing so.

Firstly, your insurance company may be able to file the third-party claim on your behalf. After reporting the accident to them, they might offer to initiate the process with the other driver's insurance company and facilitate the initial steps. This can be especially helpful if you feel overwhelmed or unsure about dealing directly with the other insurer. Your insurance company has experience handling such situations and can guide you through the process, ensuring you don't miss out on any compensation you may be entitled to.

Additionally, contacting your own insurance company can help protect your interests. They can advise you on how to respond to inquiries from the other driver's insurance company, which may try to minimise their liability or shift blame. Remember that the other insurer's primary goal is to pay out as little as possible. By consulting with your own insurer, you can gain a better understanding of your rights and options, ensuring you don't inadvertently compromise your claim.

In some cases, your insurance company may also provide coverage for certain expenses related to the accident, especially if you live in a no-fault state. No-fault insurance laws require you to make injury claims through your own insurance first, and you can typically use your personal injury protection (PIP) coverage for this purpose. This coverage can help pay for medical expenses and lost wages resulting from the accident, providing you with financial support while your third-party claim is being processed.

It's important to note that each insurance company has its own time frame for filing injury claims, and these deadlines can vary significantly. Some may not have a specific deadline, while others require claims to be filed within a certain period, such as 60 days. Therefore, it's crucial to contact your insurance company as soon as possible after the accident to understand their specific requirements and ensure you don't miss any crucial deadlines.

While you may choose to handle the third-party claim process independently, involving your insurance company can provide valuable support and guidance. They can serve as your advocate and help ensure your interests are protected throughout the claims process. Remember to provide them with all the relevant information about the accident, including details of the other driver and their insurance, to enable them to assist you effectively.

File a third-party liability claim

If you've been in a car accident that was caused by another driver, you can file a third-party claim with the other driver's insurance company to cover your accident-related expenses. This is known as a "third-party" claim because you are not one of the two primary parties in the insurer-insured relationship.

Before you file a third-party claim, you should:

• Contact your own insurance company to report the accident. They may be able to help you initiate the third-party claim with the other driver's insurance company.
• Gather information about the other driver, including their name, phone number, license and registration information, vehicle information, and auto insurance information.
• Gather information about the accident, including the date, time, location, weather conditions, and a description of what happened.
• Take photos of the accident scene and any vehicle damage.
• Get a copy of the police report and the contact information of any witnesses.

Once you have this information, you can file a third-party claim by contacting the other driver's insurance company. You can usually do this by using their online claims portal or by calling them. Be prepared to provide information about the accident and the other driver.

After you file the claim, the other driver's insurance company will likely assign an adjuster to investigate the accident, determine who was at fault, and provide an initial estimate of the repair costs. If the adjuster determines that the other driver was at fault, they will provide a settlement offer to compensate you for your damages.

If you are not satisfied with the settlement offer, you can try to negotiate a different offer or dispute the judgment. You may need to provide additional evidence or documentation to support your claim.

It's important to note that the process for filing a third-party claim may vary depending on the state you are in. In some states, you may only be able to make a third-party claim for property damage, while in other states, you can also include injury costs.

Work with a claims adjuster to determine fault and estimate repair costs

Working with a claims adjuster is an important part of the third-party auto insurance claim process. The claims adjuster is responsible for determining fault by investigating the accident and estimating the cost of repairs. It is important to cooperate with the adjuster to some extent, as you are asking the insurance company to compensate you for your losses. However, you are not obligated to accept an unacceptable settlement demand or to continue negotiating if the adjuster does not seem to be taking your claim seriously.

• Establishing Fault: In a third-party claim, the other driver must be at fault for the accident. The other driver's insurance company may accept liability, especially in cases of rear-end crashes or when there is substantial evidence, such as a police report and witness statements. If fault is not clear, you may need to discuss your situation with an attorney.
• Substantiating Your Damages: The claims adjuster will request documentation to substantiate your injuries and other losses. This may include medical records, documentation of lost income, and other proof of your damages. It is important to provide relevant information but also protect your privacy by not sharing excessive details.
• Negotiating a Settlement: The claims adjuster will likely make an initial settlement offer. Remember that this is just a starting point, and you may need to negotiate to achieve a fair outcome. You can choose to handle the negotiation yourself or seek the assistance of an experienced attorney.
• Understanding the Adjuster's Role: It is important to recognize that the claims adjuster works for the insurance company and is motivated to manage risk and close the file. They may not have your best interests at heart, so it is crucial to advocate for yourself and ensure you receive a proper estimate.
• Documenting Costs: The claims adjuster will create a "scope of loss" by interviewing you and assessing the damage. They will determine what was damaged and verify that it was caused by the specific incident in question. It is important to provide detailed information about the pre-loss condition of your vehicle to ensure an accurate estimate.
• Estimating Repair Costs: The claims adjuster will estimate the cost of repairs by inspecting your vehicle. You may also need to obtain your own repair estimate from a trusted auto shop to ensure the adjuster's estimate is fair and comprehensive.
• Using Xactimate: Many insurance adjusters use a program called Xactimate to analyze damages and create estimates. Understanding how Xactimate works can help you better evaluate the adjuster's estimate. Pay attention to room dimensions, waste factors, contractor overhead and profit, market conditions, and added costs to ensure the estimate is accurate.
• Seeking Professional Help: Negotiating with insurance adjusters can be challenging, and you may benefit from professional assistance. Consider hiring a public adjuster or consulting with an attorney to help dispute costs and ensure a fair outcome.

Receive a settlement offer from the at-fault driver's insurance company

Receiving a settlement offer from the at-fault driver's insurance company is a critical stage in the third-party auto insurance claim process. Here are some detailed instructions and considerations to keep in mind when dealing with the settlement offer:

Understanding the Settlement Offer

When you receive a settlement offer from the at-fault driver's insurance company, it is important to recognise that this is typically the beginning of a negotiation process. Insurance companies often present the initial offer as a "take it or leave it" deal, but you have the right to reject or counter their proposal. Remember that insurance companies aim to minimise their expenses, so their initial offer is likely to be lower than what you truly deserve.

Consult with a Lawyer

Before making any decisions, it is highly advisable to consult with an experienced personal injury lawyer or attorney. They can assess whether the settlement offer is fair and guide you on the best course of action. Lawyers can help you understand your rights, calculate your losses, and negotiate a higher settlement amount if needed.

Evaluate the Extent of Your Injuries and Damages

One of the most crucial aspects of evaluating a settlement offer is considering the extent of your injuries and damages. This includes both current and future expenses. For example, if you sustained injuries in the car accident, you may need ongoing medical treatment, the costs of which should be factored into the settlement. Other damages to consider include lost wages, reduced future earning capacity, pain and suffering, and punitive damages if the at-fault driver exhibited reckless or malicious behaviour.

Be Aware of the Finality of Settlement Agreements

It is essential to understand that settlement agreements are typically final and binding. Once you accept a settlement and sign a release of liability, you usually waive your right to pursue additional compensation from the at-fault driver or their insurance company. Therefore, it is crucial to ensure that the settlement adequately covers all your current and future needs.

Know Your Statute of Limitations

Each state has a statute of limitations that sets a deadline for settling a claim or filing a lawsuit. In most cases, this deadline is two years from the date of the accident for bodily injury claims and five years for property damage claims. If you miss this deadline, you may lose your right to receive any compensation.

Consider Your Settlement Goals

When negotiating a settlement, it is helpful to have a clear understanding of your goals. Consider how the accident and injuries have impacted your life, including pain, suffering, diminished quality of life, and psychological issues. Keep a journal to document your experiences, as this can be valuable evidence during negotiations.

Don't Feel Pressured to Accept Immediately

Remember that you are in control of the negotiation process. Insurance companies may create a sense of urgency to pressure you into accepting their offer quickly. However, as long as your statute of limitations allows, you have the right to take your time, gather more information, consult with a lawyer, and make a well-informed decision.

By following these instructions and considerations, you can approach the settlement offer from the at-fault driver's insurance company with confidence and ensure that you receive fair compensation for your injuries and damages.

Frequently asked questions