If you have ever been in a car accident, slipped at a store, or been injured because someone else was negligent, you have probably heard terms like “first-party insurance” and “third-party insurance”.  Here we will compare First-Party vs. Third-Party Insurance.

And here’s the truth about these two terms: understanding the difference between them can completely change the outcome of your case. It can decide whether you get fairly compensated… or getting completely taken advantage of. 

First-Party Insurance: Protecting You 

First-party insurance is the coverage you personally pay for that protects you and your property when an accident or damage occurs. Essentially, it’s when you make a claim to your own insurance company and they make the payment directly to you. 

It’s the policy where YOU are the insured person, such as: 

• Your health insurance to pay medical bills; 

• Your auto insurance when a driver with no insurance runs a red light and collides with you  (med pay, collision, uninsured motorist, etc.); or 

• Your homeowner’s or renter’s insurance when they repay you for repairing your roof. 

Sounds simple, right? Here is the trick… 

Your insurance company will not be on your side. Even though it’s your insurance company, they are not your friend, they are a business that will prioritize their pocket over yours. And it’s not personal, it’s every insurance company business model. 

Their objective is to pay you as little as possible. Even your very well-known insurer may delay, undervalue or deny your claim. 

This is where we don’t want you to get blindsided with First-Party vs. Third-Party Insurance.

Third-Party Insurance: Protecting Others (Who Doesn’t Owe You Anything) 

Third-party insurance covers damages or injuries caused by someone else to YOU. It provides protection against liabilities coming from incidents involving another insured, where YOU (the third party) are affected.  

In other words, is when you make a claim against someone else’s insurance because their insured was liable for your injury, such as: 

In all the above cases, you are the third party and the insurance company of the person liable for your injuries must pay you.  

And here comes a bigger problem… that insurance company owes you absolutely nothing. 

Their goal is to protect their client and the company’s money. 

Why This Is Important 

Whether it’s first-party claim or third-party claim, their goal is the same:  

• Try their best to scrutinize liability and damages, control the narrative aggressively, make their low settlement sound reasonable, waiting for you to say the wrong thing to use it against you, miss deadlines and make false promises, and damage your own case. 

Remember, insurance adjusters are trained negotiators whose job is to protect the company, not you. They are trained to sound helpful and make you doubt your own knowledge of the incident and medical condition. They are waiting for you to get tired and stop fighting. 

And once you do… they win. 

Why You Should Call Us  

By the time many people decide to call a lawyer, the insurance company has already built a file against them and created a narrative. 

Since insurance companies are used to getting away with not paying based on fairness nor on what you deserve, they will only be willing to pay you based on risk.  

The risk of:  

• Being sued; 

• Losing in court; 

• Paying more than the policy limit; 

• Additional time, costs of litigation and attorneys fees.  

If the insurance company sees you unrepresented, they see a low risk. But if they see you with the support and representation of a strong attorney, the risk is high, and so as your settlement.  

First-Party vs. Third-Party Insurance | How The Hoyle Firm Is Different 

Most lawyers only see the incident and damages, but we see the legal strategy and the protection that you need from insurance tactics.  

And insurance companies know the difference. From day one, we don’t just “file paperwork”, instead we: 

• Control the narrative; 

• Build strong and persuasive evidence; 

• Calculate and fight for the true value of your injuries and suffering; 

• Apply pressure on insurance companies where it actually works. 

If you’re in pain, don´t leave to chance the outcome that you deserve. 

You deserve someone on your side who understands how insurance companies work and know the best way to make them work for you.  

Let us handle the stress and protect you from being an ‘easy target´ to insurance companies. 

Call The Hoyle Firm. 

We’ll tell you exactly what your next step should be.