When it comes to the difference between first-party and third-party insurance, the answer depends on who the insurance policy is meant to protect. First-party coverage helps pay for your own losses, while third-party coverage applies when someone else is responsible for the damage.
Your Boulder car accident lawyer with Purvis Thomson, LLP can help you figure out which type of coverage applies to your case and what to do if the insurance company is dragging its feet. Taking a closer look at how these two types of policies come into play after a serious accident can help you understand the difference.
Auto insurance might seem straightforward until you are in a crash and trying to figure out who pays for what. The type of policy that applies often depends on who was injured and who was responsible. These policies are triggered by different situations, and knowing how each one works can help you avoid delays when it is time to file a claim.
First-party coverage is the part of your policy that protects you directly. It helps cover your own medical bills, vehicle damage, or other expenses when certain types of losses occur. Third-party coverage, on the other hand, is what pays when someone else makes a claim against your policy because they believe you caused the crash.
With first-party insurance, you are the one filing the claim with your own provider, which can lead to fewer outside disputes but still involves proving your losses. In third-party claims, the other driver or injured party is the one asking your insurer to pay, which often leads to more pushback and delays.
When multiple vehicles are involved or fault is shared between drivers, the process of filing and settling insurance claims becomes much more complex.
The Colorado Revised Statutes § 13-21-111 outlines how negligence can be split in these situations, but putting those determinations into practice is where challenges arise. If you are dealing with catastrophic injuries, and several insurers are involved, you may face delays or conflicting answers that make it hard to get what you need.
In crashes involving three or more vehicles, third-party claims often lead to disputes over who is truly responsible. One insurer may deny fault entirely while another offers only partial payment. When no one agrees on who started the chain reaction, it becomes harder to recover damages without a drawn-out investigation.
First-party coverage becomes essential when the driver who hit you does not have enough insurance to cover your losses. This often happens in serious crashes where the injuries far exceed state minimums. Having underinsured motorist coverage can provide additional protection when the other driver’s policy falls short.
If you need a Boulder personal injury lawyer who knows how to handle these situations without letting things slip through the cracks, here is how we can help:
Questions about insurance are common after a crash, especially when multiple policies or injuries are involved. Your Boulder car accident attorney with Purvis Thomson, LLP can walk through what happened and help you figure out which coverage applies. When you contact us, we will go over your situation together and explain what steps make the most sense for you.
