6. Who is responsible to pay?

If you make a claim against your own insurer it is considered a first party claim and you will be dealing with your insurance company based on the terms and conditions as outlined within your insurance (contract) policy.

If the accident was someone else’s fault and you are making a claim against them through their insurer, it is considered a third party claim. You are under no contractual obligation to let the other person’s insurance company inspect the damages or determine the extent of damages or cost of repair. You may, if desired, secure repairs and merely submit a bill to the at-fault party and/or their insurer for reimbursement. The at-fault party’s insurer will likely provide for your damages based upon the ‘limits of liability’ coverage under the at-fault party’s insurance policy.

It’s important to understand that the at-fault party owes you for your damages and while their insurer owes them under the terms of the property damage portion of their policy contract, the at-fault party’s insurer legally owes you, the victim, nothing. The insurer will normally attempt to settle the claim on behalf of their insured as is owed to their policyholder under the terms of their insurance policy.


Category: Total Loss FAQ

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