What Is a Third-Party Insurance Claim in New Jersey?

When you’re hurt in an accident, life can get complicated fast. Suddenly, you’re juggling medical appointments, figuring out how to cover your bills, and trying to make sense of insurance. 

You might have heard about something called a “third-party insurance claim” and wondered, “What is that? And could it help me?“

At Rosengard Law Group, we know how confusing this process can be, especially when you’re dealing with an injury. We’re here to explain things in plain language so you can understand your options and make the best decisions for you and your family. 

For immediate assistance with your claim for compensation, call our law firm at (856) 284-6446 at any time. We offer free consultation and are available 24/7. 

What Is a Third-Party Insurance Claim?

When you’re hurt in an accident, you have a few ways to recover compensation for your injuries. If someone else caused the accident, a third-party insurance claim might be one of your options.

A third-party insurance claim is a claim you make against someone else’s insurance policy. Let’s say you’re rear-ended by another driver. Instead of filing with your own insurance, you would file a third-party claim with the other driver’s insurance company. This is different from a first-party claim, which is a claim you file with your own insurer.

First-Party vs. Third-Party Insurance Claims: What’s the Difference?

When you’re dealing with an insurance claim, it’s essential to understand whether you’re filing a first-party or third-party claim. Both types of claims help you recover compensation, but they differ in who’s responsible for paying and how they work.

1. First-party insurance claim: A first-party insurance claim is a claim you make directly with your own insurance company. In this situation, you’re the policyholder, and your insurer is responsible for covering certain types of losses or damages. 
2. Third-party insurance claim: A third-party insurance claim, on the other hand, is a claim you make against someone else’s insurance policy. In this case, you’re not the policyholder; you’re the person seeking compensation because of someone else’s actions. 

Here’s a quick breakdown of the main differences between first-party and third-party claims:

• Who pays: In a first-party claim, your own insurance company pays; in a third-party claim, you’re seeking payment from someone else’s insurer.
• Fault requirements: First-party claims often don’t require proving fault (such as with PIP coverage in New Jersey), while third-party claims do—you must prove the other party was responsible for your injuries.
• Process complexity: First-party claims are typically more straightforward because your insurer has a contract with you. Third-party claims can be more challenging as you’re dealing with someone else’s insurer, which has no direct duty to you.

Knowing the difference helps you understand where to start when pursuing compensation. In New Jersey, you often have both options available, especially in car accidents.

Speaking with an Experienced Personal Injury Lawyer can help you decide which claim—or combination of claims—will best cover your needs. At Rosengard Law Group, we’re here to guide you through the process, whether you’re working with your insurer or dealing with the other party’s.

When Can You File a Third-Party Claim?

Generally, you can file a third-party insurance claim if someone else was at fault for your injuries. Here are a few situations where third-party claims often come into play:

• Car accidents: Car accidents are one of the most frequent situations where people file third-party claims. If another driver’s negligence—like Texting While Driving, running a red light, or speeding—causes a crash that injures you, you can file a third-party claim against their auto insurance.
• Truck accidents: If you’re injured in a collision with a truck, the trucking company, driver, or even the manufacturer of the truck may be liable, depending on what caused the accident.
• Motorcycle accidents: If another driver’s actions caused your motorcycle accident, you can file a third-party claim against their insurance.
• Construction accidents: If you’re hurt at a construction site because of a third party’s actions—like a subcontractor, equipment manufacturer, or someone unrelated to your employer—you can file a third-party claim.
• Slip and fall incidents: If a business or property owner’s negligence caused unsafe conditions—like unaddressed spills, poor lighting, or broken handrails—you may have grounds for a third-party claim.

In short, if someone else’s carelessness or negligence led to your injury, you may have a valid third-party insurance claim. But it’s not that simple if you live in a no-fault insurance state like New Jersey. 

How New Jersey’s No-Fault Law Affects Third-Party Claims

New Jersey is a No-Fault Insurance state when it comes to auto accidents. This means that after a car accident, your own insurance company will typically cover your medical expenses and certain other costs, regardless of who caused the accident. This type of insurance is called Personal Injury Protection (PIP), and it’s required for all drivers in New Jersey.

Because New Jersey is a no-fault state, your initial medical expenses will be covered by your PIP coverage, not by filing a third-party claim against the at-fault driver. However, if your injuries are severe and meet the legal threshold or your claim exceeds insurance limits, you may be able to file a third-party claim to recover damages that PIP doesn’t cover, such as Pain and Suffering, ongoing medical care, and other non-economic losses.

At Rosengard Law Group, we can guide you through the process, helping you understand if you qualify to step outside the no-fault system and seek the full compensation you deserve. Call (856) 284-6446 now to schedule your free consultation with our team. We are available 24/7.