What Is An At-Fault Claim?

When you are involved in an accident, you will usually make a claim and hope to recover the financial loss.  Filing a claim against the responsible party is usually the recommended procedure and the insurance company will pay for the damage. Find out more about at-fault claims and get free online car insurance quotes from our website.

teen-driver-safety-facts-and-tipsIn order to establish who will pay for the damage, the insurance companies send claim adjusters and they rely on police reports. The insurance adjuster will investigate the details of the loss to determine which party caused the accident and how much fault each party should be assigned. You will be considered at-fault in a loss when you are at least 51 percent to blame for the events that caused the accident. In this case, accident will be on your claims record and will increase your future insurance costs.

Companies pay good money for insurance claims and it is in their interest to make sure that at-fault claims are carefully analyzed. They channel all their resources when investigating the case. Allocation of fault doesn’t only have an effect on the insurance company, it can affect whether or not you’re eligible for insurance for several consecutive years. Being at-fault for subsequent accidents will make insurers consider you high-risk.

There are two different types of auto insurance claim that you can file following an accident: first-party and third-party claims. A first party claim is when you file a claim against your own insurance policy. The claim will be approved if you have sufficient coverage. Comprehensive, PIP, Uninsured and Underinsured Motorist are coverages used in first-party claims.

When you file a claim against the other party’s insurance, that’s called a “third-party” claim.  Your insurance company will deal with the matter and will negotiate with the other party’s insurance carrier.

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