First-party and third-party claims
One label describes a claim made on your own policy. The other describes a claim against someone else's policy. The rights and rules on each side are different.
Collision Bureau is not a law firm and this is not legal or medical advice. It is general information about what happens after a crash. For advice on your situation, talk to an attorney licensed in your state or a treating clinician.
What it means
A first-party claim is made by a policyholder against their own insurance policy. The parties to the claim are the insurer that sold the policy and the person who bought it. Examples include collision coverage on the vehicle, medical payments coverage, personal injury protection in no-fault states, and uninsured or underinsured motorist coverage.
A third-party claim is made by someone against another person's insurance policy. The policyholder is not party to the claim in the same way, because the policy exists to pay a third party for harm the policyholder caused. The clearest example is a liability claim brought by the person in the other car against the at-fault driver's auto policy.
How it works
The two routes are governed by different legal relationships. On a first-party claim, the insurer owes contractual duties directly to the claimant, because the policy is a contract between them. On a third-party claim, the insurer's duties run to its own policyholder, and the claimant is a stranger to the contract pursuing a tort claim against the policyholder that the policy will fund up to its limits.
The adjuster assignments reflect that. A first-party adjuster works a file for a company that is paying its own insured. A third-party adjuster works a file for a company whose interest is in minimizing what it pays to someone outside the policy. Both are professionals doing a defined job. The jobs are not the same job.
Why it comes up
Which route a crash claim takes depends on fault, coverage, and state law. In many fault states, the injured driver can pursue a third-party claim against the at-fault driver's liability coverage, and may also open first-party claims under their own medical payments, collision, or uninsured motorist coverage. In no-fault states, the first dollar of medical bills generally runs through first-party personal injury protection, and a third-party bodily injury claim becomes available only when state thresholds are met.
What it is not
Neither label describes whether a claim is strong or weak. The terms describe which policy the claim is being made against, not the merits. A property damage claim can be first-party or third-party. The same is true of a bodily injury claim. The label marks the route, nothing more.
Questions people actually ask
01Will using my own insurance raise my rates?
That depends on the state, the insurer, and the specific coverage used. Not every first-party claim affects a rate, and some states limit when and how a not-at-fault claim can be considered in renewal pricing. The declarations page lists what you carry, and the insurer's own underwriting rules govern how a particular claim lands. The specifics on your policy and your state are a question for an attorney, your agent, or both.
02Can I file both a first-party and third-party claim?
In many situations, yes, but not on the same dollars twice. First-party coverages often pay first and get repaid through subrogation when the other driver's insurer later accepts liability. In no-fault states, personal injury protection pays bills regardless of fault, and a third-party claim becomes available only once state thresholds are met. How the pieces fit on your file depends on state law and policy terms.
03Who handles the claim on each side?
A first-party claim goes to an adjuster at your own insurer, who is paid by the company that is also paying the claim. A third-party claim goes to an adjuster at the other driver's insurer, whose company's interest is in paying the smaller supportable number. The role is different in each case, which is one reason the recorded statement and documentation practices on the two sides are not interchangeable.