The Different Kinds of Liability Insurance in Personal Injury Claims

Most insurance claims in personal injury are filed under car liability coverage. That is understandable because most injury claims involve vehicle accidents. But there are other kinds of liability insurance, covering all types of injuries and circumstances.

Depending on the injury you sustained, and where it took place, you can file a claim under the insurance coverage in one of the areas:

  • Automobile
  • Homeowners
  • Business
  • Medical Malpractice
  • Boat and Off-road Vehicle
  • Workers’ Compensation

Car Insurance

There are two main forms of vehicle liability insurance: first-party (no-fault) insurance and third-party insurance. A driver who buys a car insurance policy is called the first party; while the insurance company is known otherwise as the second party; and the third party is the individual who’s injured, or sustains property damage, due to the first party’s actions.

car accident
car wreck after a car accident.

Third-party

You aren’t limited to filing a claim against the responsible driver’s insurance in third-party claims. If the car is owned by somebody other than the owner, then you are entitled to pursue the owner’s insurance too.

To succeed in such insurance claim, you should prove that the other party caused the accident. Do that through gathering as much proof as possible: photographs, witness statements, police reports, weather reports, and all that.

First-party (no-fault)

In areas or states with the no-fault law, you should turn to your insurance company for the compensation, despite who caused the accident. And in a few instances, your insurance company could pursue the other party to recover the cash they paid to you. This is called “subrogating” the claim.

Additionally, no-fault coverage applies only if there no serious injuries occurred. If you’re severely injured in a crash, you could be able to file a compensation claim from the responsible driver. Note it is always best to talk with a lawyer in severe injury cases.

Frequently, injury claims are deal with by insurance companies. In general, insurance companies settle for paying for car accidents and injuries that involving their clients. And this is why folks spend the cash on insurance. However, as an insured plaintiff, it’s crucial for you to understand your insurance contract’s fine print.

The Different Types of Liability Insurance in Personal Injury Claims by Injury Claim Coach provides us with a general idea of various types of liability insurance.

Auto Insurance

There are two primary forms of auto liability insurance: third-party insurance and first-party (no-fault) insurance. The driver who purchases an auto insurance policy is referred to as the first party. The insurance company is the second party. The third party is the person who is injured or suffers property damage, as a result of the actions of the first party.

Third-party

In third-party claims, you are not limited to pursuing the at-fault driver’s insurance. If the vehicle is owned by someone other than the driver, you have the right to file a claim against the owner’s insurance as well.

First-party (no-fault)

In states with a no-fault law, you must turn to your own insurance company for compensation, regardless of who caused the accident. In some cases, your insurance company may file a claim against the other driver to recover the money they paid out to you. This is referred to as subrogating the claim.

Determining the Coverage of the Driver

It is important to be aware of the amount and type of your insurance coverage. Not everybody who drives your vehicle is covered. The fastest way to learn who is covered under the policy is by reading the Declaration Page of your insurance contract.

The majority of insurance policies cover anybody with consent to drive your vehicle, but there are a few exceptions. For instance, if someone has many speeding tickets and other traffic violations, the insurance could list him or her as an exemption. If you allow him or her to drive your vehicle and gets in a car accident, you could be held responsible.

Also, the majority of insurance companies will deny insurance coverage if the person driving your car is involved in a serious crime. This takes in illegal drug possession, DUI, and other illegal acts.

Car accident lawyer.
Car turned upside-down after a car accident.

Now let us understand first the basics filing an car insurance claim. Here’s How to File a First-party Claim with Your Auto Insurance Company by Injury Claim Coach. Here are a few tips:

Begin with a Telephone Call

As soon as possible after the accident, call your insurance company to let them know. This begins the claims process. Make sure you get the claim number for future reference. Your claim will then be assigned to an adjuster who will call you within a few days.

Get the Police Report

Police reports are usually available within two or three days after an accident. Go to the local police station and request a copy. There might be a small fee of under $10.00. In some cities, police reports are available online.

Prepare to Speak with the Claims Adjuster

It normally takes a day or two for the adjuster to call. Use this time to prepare. By the time the adjuster calls, she’ll already have a copy of the police report and a recorded statement from the other driver. She may have even spoken with the police officers and witnesses.

When she calls, she’ll ask for your recorded statement. This is normal. Be ready to explain the facts of the accident in an organized and detailed manner.

Be prepared to give the adjuster specific information, such as which ambulance company transported you, to which hospital, and which tests were performed. Have any notes you took, diagrams of the accident, and any other pertinent information in front of you. You can never have too much information.