# Third-party claim

> A third-party claim is a claim against the other driver's insurance because their driver caused your losses. How it differs from a claim on your policy.

Canonical page: https://accidentclaimfacts.com/glossary/third-party-claim/  
Last reviewed: October 29, 2026 by the Accident Claim Facts editorial team  
General information, not legal advice. Talk to a licensed attorney in your state.

## Quick answer

A third-party claim is a claim you make against someone else's insurance, usually the at-fault driver's liability coverage, because their driver caused your losses. You are the "third party": not the insurer, and not its customer.

## In a car accident claim

After a crash caused by another driver, the Texas Department of Insurance says you can report it to the other driver's insurance company, and that their insurance should pay for your car repair, medical bills and a rental car. That is a third-party claim. It is paid only if the other driver is legally at fault, and only up to their policy limits.

A first party claim is the opposite: a claim under your own policy, such as collision, medical payments or uninsured motorist coverage. The difference matters because the rules are not the same. Your own insurer owes you duties under your contract; the other driver's insurer works for its customer. Some state laws protect only first-party claimants. Texas is an example: Prompt-payment deadlines apply to first-party claims: claims you make under your own policy that your insurer pays to you, not claims against the other driver's insurer.

The guides to [working with the adjuster](https://accidentclaimfacts.com/claim-process/insurance-adjuster/), [property damage](https://accidentclaimfacts.com/money/property-damage-and-diminished-value/) and [recorded statements](https://accidentclaimfacts.com/claim-process/recorded-statement/) explain how third-party claims usually unfold.

## Example

> **Example:** A driver is rear-ended at a red light. They file a third-party claim with the other driver's insurer for repairs, a rental car and their medical bills. When that insurer delays, they use their own collision coverage instead, which is a first-party claim, and their insurer later seeks repayment from the other side.

## Related terms

- [First-party claim](https://accidentclaimfacts.com/glossary/first-party-claim/)
- [Bodily injury liability](https://accidentclaimfacts.com/glossary/bodily-injury-liability/)
- [Adjuster](https://accidentclaimfacts.com/glossary/adjuster/)
- [Subrogation](https://accidentclaimfacts.com/glossary/subrogation/)

## FAQ

### Should you file with your own insurance or the other driver's?

People do either, and sometimes both. A third-party claim means you do not pay your own deductible up front, but it depends on the other insurer accepting fault; using your own coverage may be faster, and your insurer can then try to recover from the other side.

### Does the other driver's insurer have to pay quickly?

It has to follow your state's claim-handling rules, but some deadlines apply only to an insurer's own customers. Your state's insurance department can explain which rules apply.

## Sources

- [Texas Department of Insurance, What to do after a wreck](https://tdi.texas.gov/tips/what-to-do-after-a-wreck.html) — reporting to the other driver's insurer and what it should pay
- [Texas Legislature, Insurance Code § 542.051(2)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm), checked October 29, 2026