Understanding Auto Insurance Claimants: Who Are They?

A claimant is a person or business that files a claim under an insurance policy. In the context of auto insurance, a claimant can be the insured person, or someone who was not named in the policy but suffered a loss or damage because of the insured person's actions. For example, if you accidentally rear-end someone while driving a company car, the person you hit would be able to file a claim on your insurance and become a claimant.

Who is a claimant?

A claimant is a person or business that files a claim under an insurance policy. They are claiming financial loss and requesting reimbursement from the insurer. The insured is the person who is covered by the insurance policy, while the claimant is the person who experiences a loss because of the insured and files a claim.

There are two types of claimants: first-party and third-party. A first-party claimant is an individual or business that purchased the policy (the Named Insured) or an individual or business also covered by the policy (the Additional Insured). A third-party claimant is someone with no relation to the business other than being in the wrong place at the wrong time. For example, if you accidentally rear-end someone while driving a company car, the person you hit would be a third-party claimant.

A claimant can be the named insured. For example, if you get sick and have health insurance, you are the named insured and the claimant when you file an insurance claim. A claimant can also be an additional insured, someone generally added to a policy by the named insured to extend the policy's coverage. For instance, if you're a general contractor and you hire a plumber to work on a project, you might have the plumber add you as an additional insured to their professional liability policy. That way, if there are problems and the building owners sue you for damages, you can file as a claimant on the plumber's policy.

It's important to note that a claimant does not have to be on the policy to file a claim. A claimant can be an employee or someone unrelated to the business. If they suffered a loss or damage because of the actions of the insured or their employees, they are entitled to file a claim and become a claimant.

Differences between a claimant and insured

A "claimant" and an "insured" are two distinct parties in the context of auto insurance. Here are the key differences between the two:

• Definition: A "claimant" is a person or entity that files an insurance claim, seeking financial reimbursement for losses or damages. On the other hand, an "insured" is a person or organization that is covered by an insurance policy and is the one who typically makes the claim.
• Role in Insurance Claim: In an insurance claim, the "insured" is the one who has purchased the insurance policy and is covered by it. They are the customer of the insurance company. The "claimant," on the other hand, is the one who files the claim, seeking compensation for damages or losses caused by the insured.
• Relationship to Insurance Company: The "insured" has a contractual relationship with the insurance company, as they have purchased the insurance policy. The "claimant," however, may or may not have a direct relationship with the insurance company. They can be a third party with no prior connection to the insurance company but files a claim against the insured's policy.
• Initiation of Claim: The "insured" typically initiates the claim process by notifying their insurance company of an incident or loss covered by their policy. The "claimant," on the other hand, files the actual insurance claim, seeking compensation for damages.
• Multiple Claimants: There can be multiple claimants in a single insurance claim, especially in vehicle accidents, where passengers or third parties may be involved and file claims against the insured's policy.
• Interchangeability: While the terms "claimant" and "insured" are distinct, there may be scenarios where an insured becomes a claimant. For example, if the insured purchases health insurance and falls ill, they are the insured, but they also become the claimant when they file a claim to seek coverage for their medical expenses.

It's important to note that the use of these terms may vary slightly depending on the context and specific circumstances of an insurance claim. However, understanding the difference between a "claimant" and an "insured" is crucial in the auto insurance industry to accurately identify the parties involved and process claims effectively.

Types of claimants

A "claimant" is a person or entity that files a claim or makes a demand for something, typically a payment, that they believe they are owed. In the context of auto insurance, the claimant is the person or entity that is making a claim for damages or losses covered by an insurance policy. This could be the policyholder themselves, or it could be a third party who has suffered damages or losses as a result of the policyholder's actions.

There are several types of claimants when it comes to insurance claims:

Individuals

The most common type of insurance claimant is an individual who has purchased an insurance policy to protect themselves against loss or damage. For example, if a person with car insurance gets into an accident, they may file a claim with their insurance company to cover the cost of the damages.

Businesses

Businesses may also be insurance claimants. They purchase insurance policies to protect their assets, employees, and customers. For instance, if a business experiences a fire, it may file a claim with its insurance provider to cover the cost of the damages and lost business.

Government Entities

Government entities may also be insurance claimants. They purchase insurance policies to protect themselves against liability claims and property damage. For example, if a city's public works department damages a homeowner's property during a construction project, the homeowner may file a claim with the city's insurance company.

Non-Profit Organizations

Non-profit organizations may also be insurance claimants. They purchase insurance policies to protect their assets and employees. For instance, if an employee of a non-profit organization gets injured on the job, they may file a claim with the organization's insurance company to cover the cost of medical expenses and lost wages.

Third-Party Claimants

Third-party claimants are individuals or entities who file a claim against someone else's insurance policy. For example, if someone is injured in a car accident caused by another driver, they may file a claim with the at-fault driver's insurance company to cover the cost of their medical expenses and lost wages.

How do claimants get insurance benefits?

A claimant is a person or business that files a claim under an insurance policy. In the context of auto insurance, a claimant can be the insured person, or someone making a claim against the insured person's policy.

To obtain insurance benefits, a claimant must file a formal request, or claim, with their insurance company, or the insurance company of the person they are making a claim against. This is usually done by phone or online. The insurance company will then validate the claim, and if it is approved, they will issue payment to the insured person or an approved interested party.

The process for obtaining insurance benefits can vary depending on the type of insurance and the specifics of the claim. For example, in the case of property damage, the policyholder may need to provide evidence or supporting documentation of the damage. In the case of health insurance, the insurance company may require the policyholder to file a paper claim if the medical provider does not participate in electronic transmittals.

It is important to note that filing an insurance claim may result in higher insurance premiums going forward, as the insurance company may view the policyholder as a greater risk. Additionally, there may be certain requirements or restrictions on who can file a claim and what types of claims are covered under the policy.

To ensure a smooth and successful claim process, it is recommended to review the insurance policy carefully, gather any necessary documentation, and communicate with the insurance company to understand their specific requirements and procedures.

When to file an auto insurance claim

A claimant is a person or business that files a claim under an insurance policy. In the context of auto insurance, a claimant can be the insured person, or someone who was involved in an accident with the insured person. For example, if you accidentally rear-end someone while driving a company car, the person you hit would be able to file a claim on your insurance and become a claimant.

If Anyone Is Injured

If you, your passengers, or anyone else is injured in a crash, you need to file a claim, especially if there's a chance you'll be found at fault. Medical expenses can quickly add up, and failing to file a claim can leave you open to litigation. If you wait to get sued before contacting your insurance company, your claim may be denied.

If Fault Is Unclear

If you're involved in a crash that results in property damage or injury, and fault is disputed, you need to file a claim so that your insurance provider can represent you. Insurance companies deal with each other, and yours will need to work with the other party's insurer to assign responsibility and arrange payouts.

If Your Vehicle Is Deemed a Significant or Total Loss

If the value of the damage exceeds your ability to cover the loss, file a claim through your collision coverage or your property damage coverage through your liability insurance.

If There Is Damage to Another Person's Vehicle or Property

In this case, it is generally advisable to file an insurance claim. While minor damage may not seem like a big deal, it's important to remember that some issues may not be immediately apparent. By filing a claim, you can protect yourself from potential future costs.

If You Are Involved in a Single-Vehicle Collision

If you are in an accident that only involves your vehicle and you are uninjured, the next steps are fairly straightforward. Any claim you file in this situation would be considered an at-fault collision claim, and your insurance company will work with you to assess the damage and determine the necessary repairs.

If You Are Unsure

If you are unsure about whether to file a claim, it is generally a good idea to contact your insurance company. They can provide guidance based on the specific details of your situation and help you understand your options. Additionally, they can explain the claims process and any potential impacts on your insurance rates.

Frequently asked questions