Third Party Insurance – Common Issues
Common issues that come up involving third party insurance include:
- When does a third party’s insurance policy come into play in a case involving that third party’s liability to you?
- If, in addition to the third party coverage, you also have your own (first party) insurance, what are the pros and cons of you submitting a claim to your own insurance company? (See Understanding Third Party Insurance.)
- What is the significance of sending a written demand letter to the person or entity that caused your loss? And what should the letter say?
- Are there restrictions as to the type or amount of damages you are entitled to recover from the third party’s insurer? Or from your own?
- Does the third party’s insurer owe you any duty to handle your claim fairly or in good faith? (Hint: No.)
- If not, what leverage do you have to make them pay you adequately, or for that matter, to pay you at all?
- Does the third party insurer have the ability to force you to file a first party claim with your own insurer?
- Short of filing a lawsuit, are you entitled to see a copy of the third party’s insurance policy?
- Without giving in and accepting an inadequate settlement, what can you do to prevent a third party liability insurer from increasing its leverage by threatening to tie up your life for years with expensive, time consuming litigation?
- What is the main difference between making a first party claim and making a third party claim?