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What Is Third-Party Liability in a Car Accident?

Jan 15, 2020

What Is Third-Party Liability in a Car Accident? | AICA OrthopedicsAt some point in their lives, most people will be involved in at least one car accident. While some people walk away relatively unscathed after a car accident, most others may experience minor to severe injuries that require medical attention.

Unfortunately, medical bills can add up quickly and become very expensive, costing upwards of thousands of dollars, especially for patients who need CT scans or other diagnostic imaging services. Worse still, many people don’t see a doctor after a car accident thinking everything is ok. Any trained orthopedist or chiropractor will be able to tell if you were in a car accident.

There can also be bills to pay to repair car damage. All in all, a car accident might end up costing you a pretty big chunk of change that you may not have. It’s not only essential to understand your medical options for injuries after a car accident, but it’s also essential to understand your insurance options as well.

To make the best decisions, you must first understand more about third-party liability in a car accident.

The Difference Between First-Party and Third-Party Liability

When you pay for insurance, you are covered if something terrible should happen, like a car accident. You are the “first party.”

Third-party liability means that the insurance company will only cover the other person involved in the accident. Insurance will pay for their medical bills and damages after a third claim is filed against the at-fault driver.

If you are the driver involved in an accident (first-party) and you only have third-party liability through the insurance company (second party), then your insurance company will only cover the injured passengers (third party) after they file a claim.

You, as the insured driver, are responsible for covering your damages as the insurance company is only required to cover the third party.

How Can I Benefit from Third-Party Liability Insurance?

If you have been involved in a car accident and blame has been brought against you, the third-party person involved in the accident could file a claim against you. However, third liability insurance is designed to protect you from financial ruin should the unthinkable happen.

If you have third-party insurance, then you won’t be personally responsible for paying medical bills or property damage costs. Instead, it’s an insurance company that the third-party claim will be filed against.

Third-party insurance policies cover such things as legal fees, property damage, or medical reparations, including medical expenses, bodily harm, and physical assets. There will be limits as to how much third-party liability insurance will cover, and that will depend upon how much you put into this insurance policy.

But overall, third-party liability insurance can and will protect you from being liable for costly expenses that can add up. It may cost more upfront initially, but it is more than worth it to protect you and your family’s assets, such as personal property, savings account, or possibly future wages.

Is Third-Party Liability Insurance a Requirement?

Many states require third-party liability insurance as at least the minimum insurance coverage that automobile drivers need to have. You can invest in two types of liability insurance: bodily injury and property damage.

Both can work for your benefit should you be found liable in a car accident. The first, bodily injury, covers the injured person, such as their physical and emotional damage, medical bills, medications, and any other treatment that may be required.

The second, property damage, covers any damage done as a result of the car accident, such as damage to the automobile or other property, like city property or personal property, that was affected because of the accident.

Check your state insurance laws to see what is required of you. But remember that expenses related to a car accident can and will add up very quickly. It is imperative that you have the coverage necessary to protect yourself should a terrible car accident happen to you.

It’s not just expenses that you need to worry about after being involved in a car accident; it’s your health as well. If you have suffered any injuries related to a car accident, be sure to get the care you need to recover. AICA Orthopedics specialists are here to help. Call or visit AICA Orthopedics to make your health and healing a priority after a car accident.

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