There are three possible parties in the world of litigation and insurance. There are three possible parties in the world of insurance and litigation: the plaintiff who is seeking compensation, the defendant, who defends against a claim, as well as a third person, which could be anyone. In personal injury cases, and especially in vehicle accidents, third parties are often involved. This is because many collisions and impacts occur in areas where more than two people are present. It’s important to consider for other personal injuries as well.
Understanding the Third Party Claim Process
Third parties who file a claim are looking for coverage from someone else than the party directly responsible. It is not uncommon. A defendant who has insurance contracts with the insurer to assume their financial risk in advance. When they cause an accident, victims can sue either the insurance company or a third party, rather than the insured party. Also known as a “third-party claim”, this is a type of lawsuit. Insurance companies are liable for accidents even if they didn’t cause them. In most states, drivers are required to carry vehicle insurance when driving on public roads. This is in case they cause someone harm and the victim sues.
Accidents involving vehicles can cause serious damage, and the costs of repair can quickly exceed what a private person is able to pay. Insurance coverage on Alabama’s roads is necessary to protect multiple people from becoming bankrupted or ruinous by the mistakes of others.
Third-Party Claim Initiation
Third-party claims are not made on their own. They must follow established legal procedures. The victim must initiate a third-party claim in order to formalize it. An insurance provider may seek an injured party out to get a small settlement early compared to what he or she could receive later. When people own their own auto insurance, they will usually have the insurance company of the victim do the paperwork. Both insurance companies will then go through their own protocols in order to reach an agreement. From the perspective of the insurance provider, the goal is to reach a settlement as quickly as possible, and avoid any expensive litigation.
Be prepared for information requirements
You still need to provide significant information even if you are a victim. This is true for third-party claims as well. These data are personal and extensive. Some people may be reluctant to share them. This type of information can include any information known about the drivers’ licenses or contact information. The registration of the vehicle, its model and make, as well as any photographs that are available, can be requested. If there are any known witnesses including passengers, their names will also need to be provided. You will also need copies of relevant police reports. If you have an attorney or insurance company involved, they will take care of the majority of the paperwork for you. However, if you are filing your claim on your own, you’ll be responsible.
What can you expect after filing?
If the third-party claim is kept at provider level, it will be treated as per standard insurance company procedures. The claim is reviewed by an adjuster, usually. It is his or her responsibility to verify the claim, determine if there are any factors that may reduce the amount of money claimed from the original request or if the claim should simply be approved at the best price for the provider in order to resolve the issue. The adjuster will then send payments to the claimant, or to companies that have been hired to repair their property. To avoid fraud, most property repairs are made directly to the repair vendor. Medical costs are either paid to the claimant, or to their health insurance.
Why would a third-party claim be better than a lawsuit?
A third-party claim can provide a faster and more efficient resolution when a victim of a car crash has little or no injuries and can usually resolve the issue through their insurance. A third-party claim can be settled in just a few short weeks, while a lawsuit could take several years. While efficiency is attractive, victims may end up giving up their rights to recover for much more. In this case, the compensation must include not only medical costs but also pain and suffering, lost wages, or lost income opportunities. These figures may be far greater than just the cost of a car repair.
Alabama and Third Party Liability
Alabama, as a state enforces an insurance coverage requirement for its drivers. This means that every driver operating on public roads must be insured at a minimum amount as stipulated by state law. The party who fails to comply could be sent to jail and fined heavily. Technically referred to as an at-fault jurisdiction, Alabama holds accountable parties directly responsible an attorney for personal injury. You could be shortchanging yourself the full compensation you need.
The article Third party accident liability in Mobile, AL first appeared on Attorney At Law Magazine.