First Party Insurance Accident Claims

Written by Jeremy D. Earle, JD

March 19, 2022

What is a First Party Insurance Claim?

After an accident, one of your most significant worries is who will pay for the damages and losses you’re dealing with. Accidents result in a slew of unanticipated costs for medical treatment, missed wages, and other losses, all of which may quickly add up to a financial burden. While the time it takes to establish a mutually acceptable solution varies, the sooner you move in your instance, the better off you will be.

In many circumstances, an insurance company will assess your injury claim and arrange a settlement with you to compensate you for your losses. In and of itself, the insurance claims procedure may be a time-consuming and irritating affair. You’ll be up against seasoned industry specialists who are well-versed in the ins and outs of personal injury cases.

These insurance agents operate only to benefit the insurance companies, and your rights and interests are not a top concern for them. Any omission, communication, or mistake on your side might result in a claim rejection or a poor settlement offer for your injuries. Only a personal injury attorney can help you avoid these pitfalls.


Not only at the site of the accident but also in the following, you will certainly encounter turmoil and uncertainty when you seek compensation for your losses. When an accident happens, another person or party is often involved, who may or may not be blamed. When you combine those parties, their insurers, and your own insurance company, you’ve got a lot of vested interests in this one accident. You’ll want assistance in untangling this tangle and obtaining the funds you deserve!

You may not know who to contact or pursue for the damages and losses you have suffered as you prepare to file a personal injury claim. Trying to collect money from the incorrect person might cause extra delays and complications in your case, as well as injury your total recovery attempts. A lawyer can ensure you’re on the proper track when it comes to pursuing compensation.

Contrary to popular belief, not all insurance claims are created equal. Several variables determine the insurance carrier that bears the main liability for your injury claim.

The following factors may have an impact on the sort of insurance claim you file: Your insurance company’s connection with you

The judgment of blame in an accident case Whether the person at fault is covered

The policy restrictions on the insurance plan


Insurance claims are complicated, and unless you’re an insurance agent or an attorney, it’s tough to grasp the nuances of each policy and when they apply to a specific circumstance. Many people think of insurance claims as a generic idea and are unaware of the distinctions between filing a personal injury claim as a first-party or third-party claim. The kind of injury claim that is finally filed might affect the amount of money that can be recovered for specific losses, as well as the amount of compensation that can be received.

Many intricate connections are formed as a result of an accident. While some connections are formed before the accident (for example, between you and your insurance), others are formed due to the catastrophe (such as between you and an at-fault party and their insurer.) Following an accident, these connections become crucial because they will assist you in determining the best way to seek monetary compensation for your losses. Your legal rights and remedies may vary depending on the kind of claim you bring after an accident. After an accident, it’s usually a good idea to speak with a personal injury lawyer for advice on the insurance claims procedure and to explore your best choices.


Many individuals pay their insurance payments every month, but they are unaware of the contractual duties and restrictions of the policies and plans they purchase. In a first-party claim, a person contacts directly with their insurance provider to file a claim for injuries and losses sustained in an accident. You, the policyholder, are attempting to collect the benefits you have paid premiums.

Your claim is confined to the terms and circumstances of your insurance policy with the insurance company in a first-party insurance claim scenario. When you start an insurance policy, you enter into a contract with the insurance provider. This contract outlines the coverage you have access to as well as the conditions in which you may or may not be eligible for reimbursement under your plan.

The following are some of the most prevalent first-party insurance relationships: Car insurance • Health insurance

Renter’s insurance

Homeowner’s insurance

Due to the contractual connection between you and your insurance carrier, you may be required to meet certain conditions to submit a claim with your insurer. In an accident or injury, insurance policies will contain notification obligations. They’ll also let you know your policy’s limitations for certain damages and what it will cover under the terms of the agreement.

A person may decide to submit a claim with their insurance in the following situations: An accident in which you are at fault

Collision repairs for damaged property in a car accident if you have chosen UM/UI coverage as part of your policy.


If you are injured in an accident caused by the negligence of another person or entity, you may be entitled to reimbursement from their insurance company. A third-party claim occurs when an accident victim is engaged in an accident with an at-fault policyholder and continues to claim with the at-fault party’s insurance company.

Because the victim has no contractual arrangement with the third-party insurance provider, this is a one-of-a-kind connection. They may still seek compensation for the losses they have incurred due to the accident and the injuries they have sustained as a result of the at-fault party’s actions. This sometimes includes reimbursement for losses that policyholders cannot recover on their own, including medical expenditures, lost wages, pain and suffering, and future expenses connected to the accident victim’s injuries.

Car accident claims are a common example of third-party accident claims.

Liability claims for property damage Claims for product liability

The most typical sorts of claims in accident cases when a person is injured due to another party’s carelessness are third-party claims. These liability claims may be settled via negotiations with insurance companies, or they can proceed to trial if a settlement cannot be reached.

You are hurt in an accident caused by someone else’s negligence You incur an injury such as a slip and fall on someone else’s property You are injured as a result of a faulty product

What Is Subrogation and How Does It Work?

In the days after an accident, determining who is to blame is not always easy. In rare cases, an injured sufferer may elect to have their insurance provider apply coverage for property damage and other losses during this time. In other cases, an at-fault party’s insurance company may be unresponsive or create delays that burden an accident victim, in which case their insurance company may begin processing their claim to expedite the procedure. In certain cases, an accident victim effectively submits a first-party claim, and their insurance will pay them directly rather than the at-fault party’s insurer.

Do not expect your insurer to just accept the loss; instead, expect them to pay you first and then pursue subrogation from the at-fault party’s insurer. Subrogation gives your insurer the legal authority to seek repayment from the opposing insurer for the losses you’ve been compensated for. In most circumstances, this will be resolved between insurance companies; nevertheless, if required, your insurance company may seek payment from the at-fault party’s insurer.

The goal of subrogation is to enable insurers to process claims faster and handle issues with policyholders as rapidly as possible while still protecting you and your insurer from losses that aren’t due to your negligence or conduct.


We can’t emphasize this enough: not every insurance company salesperson is looking out for your best interests. They are exclusively concerned with their company’s interests and bottom line. Many individuals anticipate being given the runaround and encounter difficulty when dealing with the insurers of another party. Still, they may be surprised when they encounter similar issues and complexity while dealing with their insurer.


After all, as a policyholder, you pay your premiums in the hopes that your losses will be covered and that you will be able to recoup the damages you experience resulting from an accident. Regrettably, insurance firms do not always act in the best interests of their customers. They may attempt to dismiss your lawsuit or appease you with inadequate and unacceptable settlement offers. However, it may be established that they behave in bad faith when their interests clash with your legal rights and the contract between you, the policyholder, and the firm.

A policyholder has the legal right to sue their insurance company for the money they deserve after an accident, as well as extra damages if your insurer acts in bad faith. During a first- party insurance claim, bad faith claims might develop for various reasons.

For a bad faith claim in Colorado, a person may only sue their insurance provider. Third- party accident claims are not subject to bad faith allegations.

A policyholder must frequently establish that the insurance company’s or its agents’ activities were deliberate or negligent and caused the policyholder damage to sustain a bad faith claim.


Injury victims are looking for a rapid conclusion, and they are entitled to it. But how are they going to get there?

After an accident, it’s not always apparent what kind of insurance claim should be made. Each accident is different, and certain facts and circumstances can help determine which claim should be submitted in your instance. If you have been injured in an accident for any reason or others, you should always contact a personal injury attorney. A lawyer can assess your case and the insurance companies and policies involved to assist you in choosing the best course of action. You may recoup from your losses if you have the appropriate attorney on your side.

Note: Be careful while communicating with insurance providers after an accident! While you must tell your insurance provider that an accident has happened in a first-party claim, any further comments or information you provide may create unintentional injury or delay in your case.

Soon after an accident, insurance claims personnel may try to contact you. They may look polite and interested in your well-being, but their true goal is to get as much information as possible about the event and your injuries from you. In the aftermath of an accident, do not make remarks or answer inquiries regarding the event without first seeing an attorney. You are under no duty to give the insurance company recorded statements. Insurance companies, whether your own or those of an at-fault party, search for any excuse to reject or lessen their obligation and required compensation in a personal injury claim. Don’t be taken in by this ruse.

From the beginning of your case, a personal injury lawyer knows the personal injury procedure and how to safeguard your legal rights and interests. Make an appointment with a personal injury lawyer to represent you and act on your behalf throughout the personal injury claims process and settlement negotiations for your injuries, losses, and damages.

Warrior Personal Injury Lawyers
1902 W. Colorado Ave., Ste. 100
Colorado Springs, CO 80904

Free Consultation


You May Also Like…