What is the difference between first-party and third-party insurance claims?

In South Carolina, first-party and third-party insurance claims are two distinctly different types of claims. First-party insurance claims involve the policyholder making a claim directly to their insurance provider. For example, if the policyholder’s car were to be damaged, they would be able to file a claim with their insurance company to help pay for repairs. The insurance company would then pay out the damages directly to the policyholder. On the other hand, a third-party insurance claim occurs when someone else files a claim against the policyholder’s insurance policy. This could happen if someone else’s property was damaged as a result of the policyholder’s negligence. In this case, the other party would make a claim against the policyholder’s insurance company, and the insurance company would pay out the damages to the other party. In summary, the main difference between first-party and third-party insurance claims in South Carolina is that with a first-party claim, the policyholder files a claim directly with their insurance company, while with third-party claims, someone else files a claim against the policyholder’s insurance policy.

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What is the difference between first-party and third-party insurance claims?

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