What is a third-party insurance claim?
A third-party insurance claim is a claim you file with someone else's insurance company after they cause an accident. If another driver hits you on the road, you can file a third-party claim with their insurer to help cover your injuries and damaged property. These may include vehicle repairs, medical bills, or other covered costs, depending on the other driver's liability coverage and limits. If you cause an accident, your liability coverage may help pay for third-party claims against you.
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How does a third-party insurance claim work?
A third-party insurance claim is sometimes called a liability claim. It's a claim you file with the at-fault driver's insurer, using their liability coverage to help pay for your injuries or damaged property caused by the accident. Almost every state requires drivers to carry liability coverage, but minimum coverage amounts vary by state.
Depending on your state and the other party's coverage, you may file third-party insurance claims for medical bills, vehicle repairs, a rental car, and lost wages if you must miss work because of your injuries. What and how much the other person's insurance covers depends on their coverage and limits.
How third-party insurance claims work based on where you live
If you live in an at-fault or tort state
The insurance of the person responsible for the accident can help pay for your property damage and injuries.
If you live in a no-fault state
The driver's insurer may only cover property damage, depending on the accident. To get coverage for your injuries in a no-fault state, you usually must file a claim with your insurance company, typically through your personal injury protection (PIP) coverage.
Medical payments coverage can also help pay your medical bills beyond what your health insurance covers, up to your limits.
How to file a third-party claim against another driver
If another driver caused the accident, take these steps to file an insurance claim against the other driver:
Contact your insurance company.
Even though you won't file the claim through your insurer, it's important to notify them as soon as possible to report the accident. In some cases, they can help start the claim with the at-fault driver's insurer after coordinating to determine fault.
File a claim with the at-fault driver's insurer.
You can file the claim yourself by contacting the other driver's insurance company directly or by using their online claims portal. You'll use the insurance information the other driver provided at the scene.
Provide accident and insurance details.
Be prepared to share information about the accident, the vehicles involved, and the other driver's insurance. Having documentation ready can help prevent delays in the claims process.
If possible, collect the following information at the scene of the accident:
- The other driver's name and phone number
- Their license and registration information
- Their vehicle information, including make, model, and license plate number
- Their auto insurance information from their ID card
- Photos of the accident scene and vehicle damage
- Witness statements
- Police report
Pro tip:
If a police officer doesn't come to the scene, consider filing an accident report with the local police department so there's a record of what happened.
What happens after you file a third-party claim?
After you file the claim, the at-fault party's insurer will likely assign an adjuster to investigate the accident. This includes reviewing the details of the accident, determining fault, and providing an initial estimate of the repair costs.
If the adjuster determines that the other driver was at fault, the insurer may send you payment for repairs or pay the body shop directly, up to the other driver's coverage limits. If you live in an at-fault state, the at-fault driver's insurance may also cover injury-related expenses up to their bodily injury liability limits.
Pro tip:
Your state's minimum auto insurance requirements may not be enough to protect you if you cause serious injuries. When purchasing insurance, choose coverages and policy limits that can sufficiently protect your assets if you're in an accident. Learn more about how much car insurance you need.
What if someone files a third-party claim against you?
If another driver files a third-party claim against your insurance, take these steps to help protect yourself and keep the process moving smoothly:
- Notify your insurance company: Your insurer will assign an adjuster to review the claim and investigate the accident. Be prepared to share what you remember about the incident and provide any photos, witness information, or police reports you've gathered.
- Cooperate with the investigation: Stick to the facts when speaking with your insurer or the other party. Don't agree to pay out of pocket without guidance from your insurer.
- Understand how liability coverage may apply: If you're found to be at fault, your liability coverage may help pay for the other party's vehicle damage and/or injuries, up to your policy's limit.
Do insurance rates go up after a third-party claim?
Filing a third-party claim against another driver doesn't automatically protect you from a rate increase. In most states, your insurance rates can be affected even if you weren't at fault in the accident. If someone files a third-party claim against you and you're found to be at fault, a rate increase is likely. Keep in mind, your insurance rate is determined by several factors, including your driving history, coverage selection, and the make and model of your vehicle.
Learn more about how accidents impact insurance.
What if you're in an accident with an uninsured driver?
If you're hit by an uninsured driver, take steps to help protect your ability to file a claim, including:
- Report the accident to police
- Document the accident scene
- Exchange information if possible
- Avoid informal payment agreements
- Contact your insurance company
Accidents involving uninsured drivers are more common than many people realize. About 15% of motorists nationwide were uninsured in 2023, according to a 2025 study by the Insurance Research Council.
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