First Party & Third Party Claims
If you are concerned about an insurance claim and the potential for disputes, it helps to understand the basics of the process. First-party and third-party claims are the two most likely processes you will encounter.
Throughout either of these processes, there is the likelihood that disputes may arise. An insurance company may undervalue your vehicle, which will impact market value. Unfortunately, this can happen with your own insurance company or a third-party provider.
Although diminished value has much the same impact regardless of whose insurance company makes the appraisal, there are distinctions between first-party and third-party claims. Your position and negotiating strengths may depend on which scenario applies to your claim.
First-Party Claims (Insured)
- If you have valid automobile insurance, you can file a first-party claim.
- First-party policies are contracts involving two or more parties. You pay insurance premiums to benefit from coverage to vehicles covered by the policy.
- Your designation on the policy is “the insured.”
- The appraisal clause in your policy deals with disputes concerning the diminished value or actual cash value. “Rights to appraisal” is a term that also describes this process.
- In a first-party claim, diminished value is owed to you.
- If another driver, individual, or entity is “at fault” for the damage to your vehicle, claims are made through a third-party policy.
- In such scenarios, you are the claimant.
- Any disputes that arise are negotiated through intermediaries or court.
- If you wish to seek a remedy for diminished value, this must be done through a request to the insurance company.
Wreck Check Atlanta
At Wreck Check Atlanta, we can provide you with professional support when you are engaged in an automobile crash insurance dispute. Our team of experts will provide an independent report on the value of your vehicle after an accident.
We are independent of the insurance claims process, making any assessment and reports completely impartial. Call Wreck Check Atlanta today if you disagree with an insurance company’s decision related to the diminished value of your vehicle in Georgia.