Cesar Cobo | April 20, 2026 | Car Accidents, Uncategorized

After an accident, the type of insurance claim you file can directly impact how quickly you get paid, how much you recover, and how difficult the process becomes. One of the most important decisions is whether to file a first-party claim or a third-party claim.

Our attorneys at Hawk Law Group help injured people across Georgia and South Carolina navigate these choices every day—especially in cases involving serious crashes.

If you’re dealing with injuries or fault disputes, working with an Augusta car accident lawyer can make a significant difference in how your claim is handled and what you ultimately recover.

This guide breaks down the difference between first-party and third-party claims, when to use each, and how they can work together.

The Short Answer

  • First-party claim: You file with your own insurance company under a policy you purchased.
  • Third-party claim: You file with someone else’s insurance company because they caused your damages.

In many cases, both types of claims can come into play after the same accident—the key difference is whose insurance is responsible for paying.

What Is a First-Party Insurance Claim?

A first-party claim is one you file directly against your own insurance company under a policy you already own. The insurer’s duty is to you as the insured.

Common first-party coverages used after an accident:

  • Collision coverage: Pays to repair or replace your vehicle.
  • Comprehensive coverage: Pays for non-collision damage like theft or storm damage.
  • MedPay (Medical Payments coverage): Pays medical bills regardless of fault.
  • Personal Injury Protection (PIP): Similar to MedPay, offered in some states.
  • Uninsured/Underinsured Motorist (UM/UIM): Covers you when the at-fault driver lacks enough insurance.
  • Health insurance: Pays medical bills from your injury-related care.
  • Homeowners insurance: Pays for covered property losses.

First-party claims typically move faster because you have a contract with your insurer and they owe you duties of good faith.

What Is a Third-Party Insurance Claim?

A third-party claim is one filed against the at-fault person’s insurance company. You are not their insured — you are the injured party.

Examples:

  • Bodily injury liability claim against the at-fault driver’s auto insurer after a car crash.
  • General liability claim against a store’s insurer after a slip-and-fall.
  • Commercial auto claim against a trucking company’s insurer after a truck wreck.
  • Homeowners claim against the dog owner’s insurer after a dog bite.

Third-party claims pay for your full legal damages, including pain and suffering. But the insurer has no contract with you and will work hard to minimize the payout.

First-Party vs Third-Party Claims at a Glance

  • Who you file against: First-party = your insurer. Third-party = the at-fault party’s insurer.
  • What it covers: First-party = specific policy benefits. Third-party = full legal damages.
  • Speed: First-party is usually faster. Third-party takes longer.
  • Burden of proof: First-party covers agreed benefits. Third-party requires proving fault and damages.
  • Pain and suffering: First-party typically no. Third-party yes.
  • Bad faith exposure: First-party has stronger bad-faith remedies. Third-party remedies are more limited.

When to File Each Type of Claim

Start With a First-Party Claim When

  • The at-fault driver is uninsured or underinsured.
  • You need medical bills paid right away (MedPay/PIP).
  • Property damage repair is urgent (collision).
  • Liability is disputed and you need coverage while it gets sorted out.
  • You were hurt in a hit-and-run.

Use a Third-Party Claim When

  • Another driver, business, or property owner clearly caused your injuries.
  • You have significant pain-and-suffering damages.
  • The at-fault party has enough liability coverage to fully compensate you.
  • Medical bills or wage losses exceed your first-party limits.

Often, both types of claims are filed in the same case. Coordinating them is where good legal strategy matters.

If you are not sure which claim to start, contact our Augusta car accident lawyer for a free consultation.

Bad Faith: A Major Difference

The duty of good faith and fair dealing applies most strongly to first-party claims. When your own insurer delays, denies, or lowballs a first-party claim without a reasonable basis, you may have a bad-faith claim on top of the underlying benefits.

Third-party claims are different. The at-fault driver’s insurer does not owe you the same duty. However, Georgia and South Carolina both recognize limited bad-faith exposure in certain third-party settings, especially when a liability insurer fails to settle within policy limits and exposes its insured to a judgment.

How Subrogation Fits In

When your first-party insurer pays your bills, it often has a right to be reimbursed from any third-party recovery you later obtain. That is called subrogation.

Failing to account for subrogation can leave you owing your own insurer a large chunk of your settlement.

First-Party vs Third-Party in Specific Scenarios

Car Accident With a Clear At-Fault Driver

  • First-party MedPay: Pays your medical bills quickly.
  • First-party collision: Pays vehicle damage.
  • Third-party bodily injury: Seeks full compensation for pain, lost wages, and future care.

Hit-and-Run or Uninsured Driver

  • First-party UM: Steps into the shoes of the missing or uninsured driver.
  • Third-party: Not available unless a driver is identified.

Slip and Fall at a Business

  • First-party health insurance: Covers medical treatment.
  • Third-party general liability: Pursues the property owner or tenant.

Truck Accident With Serious Injuries

  • First-party UM/UIM: May apply if trucking coverage is inadequate.
  • Third-party claims: Typically against the driver, motor carrier, and sometimes a shipper or maintenance contractor.

Truck and catastrophic injury cases can involve many layers of coverage. Let our experienced Aiken property damage lawyer review your policies.

Why Third-Party Claims Often Take Longer

Third-party insurers are not your insurer, and they have no contract with you. That changes the dynamic.

  • Investigation: The insurer investigates liability before paying anything.
  • Medical treatment: Most attorneys wait for maximum medical improvement before negotiating.
  • Documentation: Pain-and-suffering damages require strong records.
  • Negotiation: Back-and-forth settlement negotiation takes time.
  • Litigation: Some claims only resolve after suit is filed.

Patience and preparation usually produce better outcomes in third-party claims, even though first-party checks arrive sooner.

Put Our Experience to Work

Deciding between first-party and third-party claims is rarely either/or. In a serious injury case, both usually come into play. Strategy, sequencing, and negotiation all affect how much you actually take home.

Our attorneys at Hawk Law Group have over 71 years of combined experience handling injury claims across Georgia and South Carolina. Consultations are free and we work on a contingency fee basis.

Call (706) 707-2950 or reach out through our contact page to speak with our team today.

Frequently Asked Questions

Can I file both types of claims at the same time?

Yes. Many accident cases involve simultaneous first-party and third-party claims. Coordinating them correctly matters for your net recovery.

Which type of claim pays faster?

First-party benefits like MedPay or collision typically pay within days or weeks. Third-party claims can take months or longer.

Does filing a first-party claim raise my rates?

A no-fault first-party claim should not automatically raise your rates, but insurers do consider overall claim history. Discuss specifics with your agent.

Do I need a lawyer for a first-party claim?

Small property claims usually do not require an attorney. First-party injury claims, especially UM/UIM, often benefit from legal help.

Is UM/UIM a first-party or third-party claim?

UM/UIM is a first-party claim because it is made under your own policy — even though it stands in the shoes of a third-party claim for damages.