First Party Claims (Insureds):
– First Party Claims are those that are filed through your own valid automobile insurance policy.
– The relationship between parties is contractual in nature. In exchange for insurance premiums your policy extends coverage to vehicles listed on the policy.
– You are referred to as the Insured.
– Disputes for diminished value and actual cash value, in the event your vehicle is a total loss, are managed through a portion of your policy called The Appraisal Clause. The process is also referred to as using your “rights of appraisal.”
-Diminished value is owed to you.
Third Party Claims:
– Third Party Claims are filed through the insurance policy of the “at fault” driver, someone other than yourself.
– You are considered a Claimant through the process.
– Disputes are settled by negotiation or through the court system.
-You must request diminished value or the insurance company will not compensate you.