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

In Washington, there are two types of insurance claims: first-party and third-party. A first-party claim is when the policyholder seeks compensation from their own insurance company for losses due to an accident or other covered event. This can include medical claims, property damage claims, or claims involving liability or personal injury. An example of a first-party claim is when a policyholder files a claim with their auto insurance company after an auto accident. A third-party claim is when the policyholder seeks compensation from someone else’s insurance company for losses due to an accident or other event. This could involve a claim against an at-fault driver, property owner, or business for damages caused by them. An example of a third-party claim is when a policyholder who was hit by an uninsured driver files a claim with the uninsured driver’s insurance company. In both cases, the insurance company is legally obligated to pay out on valid claims. However, the difference between first-party and third-party claims is that the policyholder is seeking compensation directly from their own insurance company in the case of a first-party claim, or from someone else’s insurance company in the case of a third-party claim.

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

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