Third-party claims occur with less frequency in no-fault car insurance states, where you first look to your own insurance company to recover, regardless of who is actually at fault for an accident or injury. Generally, no-fault states have mandatory minimum insurance requirements, meaning that every driver carries a statutorily dictated minimum amount of insurance. If, after you’ve made the appropriate claims to your own insurance company, your claim meets your state's monetary threshold or "serious injury" threshold for stepping outside of no-fault, you may be able to initiate a third-party claim.
Making a claim with “the other driver’s” insurance company? That’s a third-party claim. Driving a company car and sustain an injury? You’re making a third-party claim there, too. Injured while driving your own car in the course of your job? A third-party claim with your employer’s insurance company would be your mechanism for recovery of medical and repair costs. Any claim made to an insurance company other than your own is considered a third-party claim.
The legal liability of the insured person is covered under the third-party insurance policy in the case of disability or demise of the third party, and any damage or loss to the property of the third party. The third-party liability policy takes care of the financial and legal burden in such circumstances. Despite the fact that the direct beneficiary is neither the insurance company nor the insurer, but a third party, this is the most crucial benefit that a third party insurance secures for the owner or the driver of the insured vehicle.
The price of car insurance can vary greatly between states. One company may be expensive in Utah, but inexpensive in New York. In some states, a small, local company could even offer the best price. Below, click through to your state to see which company and cities have the least expensive car insurance based on the numerous studies we've conducted.
If you have paid off your car, comprehensive coverage is optional. It may be a good idea to find out the Kelley Blue Book value of your vehicle. Would you be able to pay that amount to repair or replace your vehicle if it were stolen or damaged in an accident? If you can't afford to pay much out of pocket, then buying optional coverages, like comprehensive coverage and collision coverage, may be a smart investment.