In the case of any car accident and the claims on insurance amount after the incident, there are three parties involved in it. The first party is obviously the insured person, that is you! The second party will be the company which provides the insurance. The third party can be anyone who becomes a participant of the claim. It can be the other person involved in car accident. The third party would be the one who claims and accuses the first party of injuring them or for causing damage to their property.
In case the person who is complaining about an injury or loss of property caused by a car collision doesn’t have any personal insurance of their own, then they become the third party. The first party would be the one who has driven the car and has contact with the insurance company who is also referred to as the second party.
Both the first party and third party insurance are beneficial for you if you own a car and plan to use it on a regular basis. Accidents and mishaps always appear out of the blue, totally uninvited and uncalled for! It will be a hassle if you have to face the mental trauma of meeting the medical expenses and repairing the car even while you are struggling to get over the physical and mental pain the accident caused you! Mandatory or third party liability Insurance provides you a blanket of security and cover for your expenses when the most unexpected incident happens at the least expected hour of your life!
First Party Insurance or comprehensive insurance
You can apply for first-party insurance to protect you as an individual and to provide cover for the damages that might happen to your car. First party car insurance claim can be filed with the person’s own personal car insurance company. In case you get involved in a car accident, and even if you are not at fault for causing the damage, you can claim for first-party insurance.
In case the other party caused the accident and is not willing to pay compensation for it, your insurance company can help you to claim it.
In case your car has got damaged, stolen or vandalized, you can again claim your first party insurance or comprehensive insurance. The insurance company will offer compensation for the repair works or damages caused to you in case of partial loss or cover your total loss by providing IDV (Insured declared value)
You can get the first party benefits if you have taken the first party insurance. It can be of great help in case you get injured in an accident. Here are some of the medical benefits covered in a first party insurance:
- Medical expenses and surgical needs due to accident.
- The rehabilitation services after the medical treatments if necessary. It covers speech therapies, physical therapies, etc.
- Psychiatric, optometric, dental and psychological treatments if necessary.
- Emergency services cost. It includes cost of ambulance, first aid cares, etc.
- Covers the expenses of medicines, prosthetic devices and other medical supplies.
Third Party Car Insurance
The third-party car insurance comes to light only when the claim involves the insurance company of the other car driver. In case the accident was caused due to the fault of the other party, even if you are partially responsible for the accident; you can claim for third-party car insurance.
With the help of a third-party claim, you can get your expenses covered by the insurance company of the other driver involved in the accident. In case your car was damaged fully, the other party’s insurance company is liable to pay you the value of your car in cash.
In case you got injured due to the fault of the other driver, their insurance company must pay for all your medical expenses.
The most common example of third party insurance is the liability claim raised by a person who got injured in an accident caused by your car. They can claim for the expenses caused by accident. It covers the medical expenses, cost of medicines and a compensation amount for causing the pain and discomforts.
Another great benefit of third party insurance is that these policies are easy to access and easier to renew or buy. The buying and renewing process is relatively simpler and does not include much hassles.
The Laws of State Varies
An individual’s insurance varies per the state in which he/she lives. The requirements of car insurance can vary from one state to another. Hence, always inquire about the state rules if you are involved in a car accident. A better understanding of the rules can help in avoiding further confusions and mistakes.
Hence, both first-party insurance and third party car insurance are different, yet they both serve the same purpose; to provide a helping hand and protection of the law in times of distress!