What is a Third-Party Car Insurance Claim?
In Texas, every licensed motor vehicle must carry basic liability insurance. As the policyholder, you pay premiums to your insurance company in exchange for protection against claims if you cause an accident. The parties in a third‑party insurance claim are:
- First party – You, the policyholder.
- Second party – Your insurance company.
- Third party – The at‑fault driver (or other negligent party) who caused your injuries.
When you are injured by another driver’s negligence, you file a claim against that driver’s policy. Their insurer is responsible for compensating you up to the policy limits. Texas requires minimum limits of $30,000 per person for bodily injury, $60,000 per accident for total bodily injury, and $25,000 for property damage (commonly called 30/60/25 coverage).
If your losses exceed those limits, additional options, such as your own underinsured motorist coverage or a personal injury lawsuit, may be necessary
What Third‑Party Insurance Covers (and What It Does Not)
Third‑party liability coverage typically pays for:
- All medical bills related to the accident
- Lost wages during your recovery
- Out‑of‑pocket expenses (e.g., travel costs to medical appointments)
- Non‑economic damages such as physical pain and emotional suffering
Exclusions: Third‑party insurance does not cover weather‑related damage (e.g., hail), vehicle theft, vandalism, or pothole damage. Those require additional comprehensive or collision coverage on your own policy.
The Third‑Party Insurance Claims Process
Filing a successful third‑party claim requires careful documentation and timely action. Follow these steps:
- Gather essential information – Obtain the at‑fault driver’s name, contact details, insurance company name, and policy number. Request a copy of the police report, as it is critical evidence.
- Notify your own insurer – Inform your insurance company about the accident, even though you are filing against the other party’s policy.
- File the claim – Contact the third party’s insurance company to open a claim. They will assign a claims adjuster to your case.
- Investigation and evaluation – The adjuster will investigate liability, review your medical records, assess property damage, and determine a settlement value.
- Negotiate a fair settlement – The adjuster will make an initial offer. You (or your attorney) can counter‑offer and negotiate until a fair agreement is reached.
If the insurer denies liability, disputes your injuries, or refuses to offer fair compensation, you may need to escalate the matter. Keep in mind that Texas imposes a two‑year statute of limitations for filing a personal injury lawsuit, so do not delay.
Critical Considerations Under Texas Law
Texas follows a modified comparative negligence rule. This means your compensation is reduced by your percentage of fault in the accident. You are barred from recovering anything if you are found to be more than 50% at fault. Because insurers often try to shift blame, it is vital to have strong evidence proving the other driver’s negligence.
Common Tactics Insurers Use to Reduce Your Claim
Insurance companies are businesses focused on minimizing payouts. Be aware of these common tactics:
- Using recorded statements against you: They may twist your words to imply fault or downplay your injuries.
- Scrutinizing medical records: Adjusters look for pre‑existing conditions to argue your injuries are not accident‑related.
- Stalling or delaying: Prolonging the process can pressure you into accepting a lowball offer to cover immediate bills.
- Offering a quick settlement: An early offer often does not account for future medical costs or long‑term impairment.
Do not accept an offer without understanding the full extent of your injuries and losses. A thorough evaluation of your current and future damages is essential before settling.
How an Attorney Can Protect Your Third‑Party Claim
An experienced Houston car accident attorney can level the playing field. They will gather compelling evidence, handle all communications with the insurance company, and aggressively negotiate for maximum compensation. If a fair settlement cannot be reached, your lawyer can file a personal injury lawsuit against the at‑fault driver to pursue damages beyond the policy limits, including non‑economic losses and, in egregious cases, punitive damages.
Contact Dax F. Garza, P.C. for a Free Consultation
Third‑party insurance exists to protect you, but insurers rarely make it easy to collect what you deserve. If you have been injured in a Texas car accident, our team is ready to guide you through every step of the claims process. We fight against unfair tactics and work tirelessly to secure the financial recovery you need.
Contact us today for a free consultation and let us help you navigate your third‑party insurance claim with confidence.
