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

In California, insurance law distinguishes between first-party and third-party claims. A first-party claim is when an individual makes a claim against their own insurance policy. This type of claim is often made after an auto accident or a natural disaster that affected the policyholder’s property or caused them personal injury. The policyholder can make a claim to be compensated for lost wages, medical bills, vehicle damage, or other losses that are covered by their insurance policy. A third-party claim is when an individual makes a claim against someone else’s insurance policy. This type of claim is often made when an individual has been injured in an accident caused by someone else, or when their property has been damaged by another person. The individual making the claim is not the policyholder, but they can still make a claim to be compensated for medical bills, property damage, or other losses they may have incurred as a result of the other individual’s negligence. In California, insurance law also requires a certain level of liability insurance for individuals and businesses. These policies provide coverage for any losses that third-parties may suffer as a result of activities conducted by the policyholder. Both first-party and third-party claims can be made against this type of coverage.

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

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