First party vs. third party auto claims: when to use your own insurer or theirs
Compare speed, deductibles, fault and repair control to choose the right claim path
Safety Behind the Wheel Foundation built this guide from the National Association of Insurance Commissioners (NAIC) model claims rule, consumer guidance from the Texas, California, New York and Washington insurance regulators, state claim regulations and National Highway Traffic Safety Administration (NHTSA) guidance. Every source is listed at the end.
Two doors after the same collision
After a car accident, you need a safe car, care for anyone who was hurt and a way to get around. Insurance pays for much of that, through one of two doors.
The first door is your own insurance company. This is a first party claim. You are asking for benefits you already paid for, such as collision coverage for your car.
The second door is the other driver’s insurance company. This is a third party claim. You are asking it to pay for harm its driver caused, using that driver’s liability coverage.
The National Association of Insurance Commissioners (NAIC), the national group of state insurance regulators, draws the same line in its model claims rule. A first party claimant seeks payment under an insurance policy. A third party claimant makes a claim against another person who has a policy [1].
The choice affects safety, not just paperwork. In 2024, 39,254 people died in traffic crashes in the United States [2]. The National Highway Traffic Safety Administration (NHTSA) estimates 36,640 deaths for 2025 [2]. A slow claim or a cheap repair can leave you driving a car that is not fully fixed, or stuck without a ride to treatment.
The two paths side by side
Four questions shape almost every auto claim. Who owes you a duty? Must fault be settled first? What comes out of the payment? Who controls the repair?
Comparison compiled by Safety Behind the Wheel Foundation
First party and third party claims compared
| Question | Your own insurer (first party) | Other driver’s insurer (third party) |
|---|---|---|
| Your relationship | You are the customer, under your policy | No contract with you [3] |
| Must fault be settled first? | No, if you have collision coverage [3] | Yes. It may deny or split fault [3] |
| Deductible | Comes out of your payment [4] | None from your policy. Pay turns on fault and limits [3] |
| Claim deadlines | Set by rules in states such as Texas, California and New York [4, 5, 6] | Texas says its prompt payment law does not apply [4] |
| Rental car | Only if you bought rental coverage [5] | Should be paid if it accepts fault [3] |
| Repair shop | Your choice in the states reviewed [4, 6] | California bars any insurer from requiring a shop [7] |
Neither path always wins. Texas regulators suggest a simple order: file with the other driver’s insurer, let your own company know, and turn to your own coverage if the other side will not pay [3]. Safety Behind the Wheel Foundation gives drivers the same advice.
Speed: why your own insurer often moves first
Your policy is a contract, so your insurer owes you duties the other driver’s insurer does not. Some states also set firm clocks for first party claims.
- Texas: Your insurer must confirm it got your claim within 15 days. It must accept or reject it within 15 business days after it has everything it needs from you. Once it agrees to pay, it has five business days to send the check [4].
- California: An insurer must acknowledge a claim within 15 days and accept or deny it within 40 days after proof of claim. It must pay within 30 days of a settlement [5]. If it needs more time, it must send written notice every 30 days [8].
- New York: For collision and comprehensive claims, your insurer has six business days to look at an available car and put a good faith offer on the table. If the claim is still open after 30 days, it owes you a written reason [6].
As of October 2026, these clocks are set state by state. The NAIC model offers states a template. It calls for acknowledging a claim within 15 days. A first party claimant should get a yes or no within 21 days of a completed proof of loss, the papers that document the claim [1].
The third party path has fewer built in clocks. Texas says its prompt payment law does not apply when another driver’s insurer is paying [4]. That insurer may also wait on its own customer, who may never reply [3]. When fault is clear, it may still move fast. When it is not, you have little leverage.
Your deductible: the price of going first
A deductible is the share of a covered loss you pay yourself. Texas gives a simple example. On a $1,500 collision claim with a $500 deductible, the insurer pays $1,000 [4].
After paying your claim, your insurer can seek repayment from the at fault side. This is called subrogation, which means your insurer steps into your shoes to collect what it paid. If it gets money back, you might get your deductible back too [3]. States handle that refund differently.
Comparison compiled by Safety Behind the Wheel Foundation
How four states treat your deductible in subrogation
| State | What the rule says about your deductible |
|---|---|
| California | Must be in the demand. Recoveries are shared in proportion, so a 65% recovery returns 65% of it [5, 8] |
| Washington | Must be in the demand. Recoveries go to your deductible first, minus your share of fault [9] |
| New York | You get a pro rata share of the net recovery within 30 days after the insurer collects [10] |
| Texas | Insurer will try to recover what it paid. You might get your deductible back [3] |
Some states also limit what the insurer may subtract. California bars taking legal or collection costs out of your deductible share unless an outside lawyer or collection agency was hired [8]. New York figures your share after the insurer’s costs tied to that recovery [10].
You should also get updates. California requires written notice of whether your insurer will pursue subrogation. If it drops the effort, the notice must say any recovery is now up to you [8]. Washington requires contact within 60 days after subrogation starts, then at least every 180 days [9]. Our guide on getting your collision deductible back covers that follow up.
If the deductible is hard to pay right now, do not let it push you toward a cheaper repair. Ask both insurers how soon each can pay.
Fault: the question behind every third party claim
A third party claim pays only if the other insurer agrees its driver was to blame. Texas regulators list the common snags. The insurer may deny that its driver caused the collision, claim you share the blame, report that its driver’s coverage is too small, or go quiet [3]. If it refuses to pay, ask it to explain the refusal in writing, with details [3].
Shared fault shrinks a third party payment. In California, for example, an insurer may prorate towing and storage payments to a third party claimant based on each driver’s share of fault [7]. See what to do when an insurer says you were partly at fault.
Your own collision coverage does not wait for that fight. It pays your repair costs, and your insurer can pursue the other side later [3]. For a flat denial, see when the other driver’s insurer says its driver wasn’t at fault.
Fault still matters on your own claim in two ways:
- Your deductible refund. In Washington, if you are found partly at fault, you get back only part of your deductible [11].
- Your premium. California says an accident that is not your fault does not raise your rate, but being at least 51% at fault can bring a surcharge at renewal [12]. New York allows surcharges only for at fault accidents with injuries or with property losses over $2,000 [13].
Who controls the repair
On a first party claim, your insurer reviews the damage, settles on an estimate and pays, minus your deductible. You still choose the shop. Texas says insurers may offer a list of preferred shops but cannot make you use one [4]. California and New York also leave the choice to you, and Washington says it is typically yours [5, 6, 11].
State rules also set inspection and quality standards:
- New York gives your insurer six business days after notice of the claim to inspect your car. If it misses that window, it loses the right to inspect before repairs [10].
- New York also covers shops the insurer recommends. If such a shop does not repair the car to generally accepted standards, the insurer must have it restored at no added cost to you [10].
- California requires an estimate large enough to pay for repairs that meet accepted trade standards [7].
- Washington’s updated rules let a claimant ask for an in person inspection when a photo based estimate has failed them. They take effect October 18, 2026 [14].
On a third party claim, you have less say over the other insurer’s estimate. California’s ban on requiring a specific shop covers any insurer, and its inspection timing rule names third party claimants’ vehicles [7]. Elsewhere, ask for the estimate in writing.
Whoever pays, the repair has to restore safety. Ask the shop whether cameras or radar sensors need calibration after the repair, and get the results in writing. Our guide to camera and sensor checks after crash repairs explains why.
Getting around while your car is in the shop
A wreck can cut off your ride to work, school or therapy. Who pays for a rental depends on the path.
On the third party path, the at fault driver’s insurer should pay for a rental, along with repairs and medical bills [3]. In practice, that help depends on the insurer accepting fault.
On the first party path, you get a rental only if you bought rental coverage. That coverage has a daily dollar cap and a limit on the number of days [5]. Texas adds that the insurer pays only for as long as it thinks a repair or replacement should reasonably take [4]. If repairs drag on, see when rental coverage runs out before your car is fixed.
Two more costs can build while you decide:
- Storage fees. A towed car can rack up daily charges. Washington suggests picking up the car quickly or letting the insurer move it [11].
- Child car seats. NHTSA recommends replacing a car seat after a moderate or severe crash [15]. A crash counts as minor only when the car could be driven away and the door nearest the seat was not damaged. Also, no one was hurt, the air bags did not deploy and the seat shows no visible damage [15]. Ask the insurer handling your claim to include a new seat.
Injuries run on a separate track
Injury claims often move separately from car damage. Your own policy may include personal injury protection (PIP) or medical payments coverage for medical bills. Uninsured or underinsured motorist coverage can pay when the at fault driver has no insurance or too little, or drives away [3]. These are first party benefits. Our article on medical payments coverage and PIP explains them.
A claim against the other driver’s bodily injury liability coverage is a third party claim, with the same fault and limits questions [3]. Watch legal time limits. A statute of limitations is the legal deadline for filing a lawsuit. Under the NAIC model, an insurer negotiating with someone who has no lawyer must give written notice when such a deadline may affect the claim [1]. Do not count on that notice alone.
A decision table: which door to try first
Use this table as a starting point, not a rule.
Comparison compiled by Safety Behind the Wheel Foundation
Which claim path often fits your situation
| Your situation | Path that often fits | Why |
|---|---|---|
| Other insurer accepts fault quickly, in writing | Third party | It should pay repairs and a rental [3] |
| Fault is disputed or unclear | First party, if you have collision | Your coverage pays repairs while fault is argued [3] |
| Other insurer is silent or slow | First party | Prompt payment rules may not reach it [4] |
| At fault driver had no or too little insurance, or fled | First party (uninsured motorist or collision) | Uninsured motorist coverage is built for this [3] |
| You have no collision coverage | Third party | Your policy may not pay for your car |
| Insurer says you share fault | Compare both | A third party payment shrinks with your share [7] |
| Serious injuries | Both tracks, plus legal advice | Legal deadlines apply [1] |
Two cautions apply to every row. First, tell your own insurer about the accident even if you plan to use the other driver’s coverage [3]. Second, before you accept a check or sign a release from the other insurer, ask your own insurer whether it could affect its effort to recover your deductible. If the other driver had no insurance, see what to do when the driver who hit you has no insurance.
A first week routine that keeps both doors open
- At the scene, if it is safe, photograph the other driver’s insurance card and license [3].
- Report the accident to your own insurer and write down the claim number.
- Open a claim with the other driver’s insurer. Send it the police report if there is one [3].
- Ask the other insurer whether it has accepted fault, and if not, when it will decide. Get the answer in writing.
- Ask your own insurer for your collision deductible, your rental limits and how it handles subrogation.
- Choose your repair shop and tell both insurers where the car is.
- Set a decision date. If the other insurer has not accepted fault by then, ask your own insurer to handle the repair.
- Log every call: the date, the person’s name and what was promised.
Frequently asked questions
Can I file with both insurers at the same time?
Yes, you can report the crash to both. Texas regulators suggest filing with the other driver’s insurer and letting your own company know [3]. The goal is one repair, paid once. If your own insurer pays first, it can seek repayment from the other side [3]. Tell both adjusters which claim is handling the repair.
Will using my own coverage raise my rate if I wasn’t at fault?
It depends on your state and your insurer. California says a crash that is not your fault does not raise your premium, while being at least 51% at fault can [12]. New York allows surcharges only for at fault accidents with injuries or with property losses over $2,000 [13]. Other states set their own rules. Ask your agent or your state insurance department how a not at fault collision claim is treated where you live.
Do I pay a deductible if the other driver caused the accident?
On your own collision claim, yes, at first. The deductible comes out of the payment [4]. Your insurer may then try to recover from the at fault side. In California and Washington, it must include your deductible in that demand [8, 9]. If the other insurer pays your claim directly, your own deductible is not part of it, since that money comes from the other driver’s liability coverage.
What if I don’t have collision coverage?
Then a third party claim may be your main route for car damage. If the other insurer denies fault, ask for its reasons in writing and consider a complaint to your state. In Texas, a complaint about another driver’s insurer means that company must write back and explain why it is denying or how it is paying [3]. If the at fault driver had no insurance, uninsured motorist coverage may help if you carry it [3].
When should I talk to a lawyer?
Consider it when injuries are serious, fault is hotly disputed or the other insurer will not pay. Texas regulators name legal help as the next step when an insurer will not pay for damage or medical bills [3]. Legal deadlines also apply to injury claims, so do not wait for an insurer to remind you [1]. A lawyer can also review any release before you sign it.
The bottom line
Recommendation from Safety Behind the Wheel Foundation
Safety Behind the Wheel Foundation encourages every driver to keep both claim paths open until one insurer is clearly paying for a safe repair. Both doors lead to the same goal: a safe car and care for anyone hurt. Your own insurer owes you a contract and often firmer deadlines, but you pay the deductible first. The other driver’s insurer may cover repairs and a rental with no deductible from your policy, but only after it accepts fault, and only up to its driver’s limits.
You do not have to choose on day one. Report to both, ask for a fault decision in writing and set a date to switch if the other side stalls. On either path, make sure the repair restores your car’s safety systems.
Related articles
Sources and further reading
- 1National Association of Insurance Commissioners (NAIC). Unfair Property/Casualty Claims Settlement Practices Model Regulation (Model 902). Document dated 1997. content.naic.org/…/model-law-902.pdf
- 2National Highway Traffic Safety Administration (NHTSA). Trump’s Transportation Department Announces Record-Low Traffic Deaths & Fatality Rates in 2025 (2025 early estimates and 2024 annual FARS data). Published April 1, 2026. Data year: 2024 (final FARS) and 2025 (early estimate). nhtsa.gov/…/traffic-deaths-2025-early-estimates-20…
- 3Texas Department of Insurance. Accident not your fault? Here’s how to deal with the other driver’s insurance. Updated April 24, 2025. tdi.texas.gov/…/how-to-deal-with-the-other-drivers-ins…
- 4Texas Department of Insurance. Auto insurance guide. Updated December 11, 2025. tdi.texas.gov/pubs/consumer/cb020.html
- 5California Department of Insurance. So You’ve Had an Accident, What’s Next? Revised December 2024. insurance.ca.gov/…/hadaccident.cfm
- 6New York State Department of Financial Services. Filing Claims Under Your Own Policy. No date shown; accessed October 2026. dfs.ny.gov/…/filing_claims_under_your_own_policy
- 7California Code of Regulations, Title 10, Section 2695.8. Additional Standards Applicable to Automobile Insurance (via Cornell Legal Information Institute). Last amended July 14, 2021. law.cornell.edu/…/10-CCR-2695.8
- 8California Code of Regulations, Title 10, Section 2695.7. Standards for Prompt, Fair and Equitable Settlements (via Cornell Legal Information Institute). Last amended 2021 (Register 2021, No. 29). law.cornell.edu/…/10-CCR-2695.7
- 9Washington Administrative Code 284-30-393. Insurer must include an insured’s deductible in its subrogation demands (via Cornell Legal Information Institute). Effective July 8, 2011 (as amended); further amended by R 2025-05, effective October 18, 2026. law.cornell.edu/…/WAC-284-30-393
- 10New York Codes, Rules and Regulations, Title 11, Section 216.7. Standards for prompt, fair and equitable settlement of motor vehicle physical damage claims (via Cornell Legal Information Institute). Amended effective June 9, 2021. law.cornell.edu/…/11-NYCRR-216.7
- 11Washington State Office of the Insurance Commissioner. Filing an auto insurance claim. No date shown; accessed October 2026. insurance.wa.gov/…/filing-auto-insurance-claim
- 12California Department of Insurance. Automobile Insurance Text Version. Revised February 5, 2025. insurance.ca.gov/…/auto101.cfm
- 13New York State Department of Financial Services. Consumer FAQs: Automobile. No date shown; accessed October 2026. dfs.ny.gov/faqs/consumer_faqs/automobile
- 14Washington State Office of the Insurance Commissioner. Concise Explanatory Statement; Responsiveness Summary; Rule Development Process; and Implementation Plan (R 2025-05, claims handling rules). Rule filed August 18, 2026; effective October 18, 2026. insurance.wa.gov/…/r2025-05-ces.pdf
- 15National Highway Traffic Safety Administration (NHTSA). Car Seat Use After a Crash. No date shown; accessed October 2026. nhtsa.gov/…/car-seat-use-after-crash
This article reflects the safety priorities of fair auto claim handling and complete, safe repairs after a collision. It is general education, not legal, insurance or financial advice. Claim rules vary by state and change over time, so verify details with official sources. For your own situation, contact your insurer or agent, your state insurance department or a licensed attorney in your state. Reviewed October 2026.
Cite this article: Safety Behind the Wheel Foundation. “First party vs. third party auto claims: when to use your own insurer or theirs.” drivewithcare.org, https://drivewithcare.org/first-party-vs-third-party-auto-claims/. Reviewed October 2026.
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