When you’ve been in a car accident and your vehicle is damaged, deciding whether to file a claim with your own insurance or pursue the at-fault party’s insurance can be confusing. Many people believe that going after the other driver’s insurance is the better option to avoid paying a deductible or fearing their premiums will rise. However, this belief is more myth than fact. Filing a first-party claim under your full coverage auto insurance is often the smarter, faster, and more reliable choice. Here’s why.
What Is Full Coverage Auto Insurance?
Before diving into the benefits of filing a first-party claim, let’s clarify what full coverage means.
Full coverage typically includes the following components:
- Liability Insurance: Covers damages and injuries you cause to other people or property. It does not cover your own vehicle.
- Collision Insurance: Pays for repairs or replacement of your car after an accident, regardless of who’s at fault.
- Comprehensive Insurance: Covers non-collision-related damage to your car, such as theft, vandalism, weather damage, or hitting an animal.
While the term “full coverage” isn’t an official insurance designation, having a policy that includes liability, collision, and comprehensive coverage ensures you’re protected in almost any scenario.
1. Full Coverage Offers Speed and Reliability
When you file a first-party claim, you’re working directly with your own insurance company—a company with whom you have a legal contract. Your insurer is obligated to handle your claim efficiently and according to the terms of your policy. Here are a few reasons why this matters:
- Faster Resolution: Your insurance company prioritizes you as their customer. Claims are typically processed more quickly than when dealing with a third party.
- Deductibles Are Temporary: While you may need to pay your deductible upfront, your insurer can often recover it from the at-fault driver’s insurance company through a process called subrogation. Once recovered, the deductible is reimbursed to you.
In contrast, dealing with the other driver’s insurance can be a frustrating experience, filled with delays, denials, and lowball offers. They owe you nothing directly because you’re not their customer.
2. You’re at the Mercy of the Third Party’s Insurance
If you choose to pursue the at-fault driver’s insurance, you’re entering a process where you have no legal contract. Their primary goal is to protect their insured and minimize payouts, often leaving you with limited options. Here’s what you’re up against:
- Denials of Liability: The other insurance company may argue their driver wasn’t at fault, dragging out the process or refusing to pay entirely.
- Low Offers: Even if liability is accepted, they may offer far less than what your repairs or replacement cost.
- Lengthy Negotiations: Without leverage, you could wait weeks or months before receiving a settlement.
On the other hand, your insurance company is legally bound to act in good faith to resolve your claim.
3. The Truth About Premium Increases
Many drivers avoid filing first-party claims out of fear their premiums will skyrocket. However, this is largely a myth. Here’s why:
- Premiums Depend on Fault, Not Filing: If the accident wasn’t your fault, your driving record reflects that fact. Your insurance company evaluates your risk based on your driving behavior, not whether you filed a claim.
- All Insurers See Your Driving Record: Regardless of whether you file a claim, insurance companies have access to your accident history through shared databases. Avoiding a claim doesn’t hide the fact that the accident occurred.
Filing a first-party claim won’t automatically increase your rates if you weren’t at fault, but avoiding it could leave you with a prolonged, frustrating claims process and more out-of-pocket expenses.
4. Full Coverage Protects You in Any Situation
Having full coverage auto insurance ensures you’re protected regardless of fault. When you file with your own insurance:
- You Control the Process: You’re not waiting on a third party to make decisions.
- You Can Focus on Repairs: Your insurer will often help arrange repairs and rental vehicles, minimizing disruption to your life.
If you only carry liability insurance, you’re stuck depending on the at-fault party’s insurance, which often feels like playing the lottery.
5. Filing First-Party Claims Helps You Avoid Pitfalls
Third-party claims might seem appealing to avoid paying a deductible, but they often come with hidden risks:
- No Guarantee of Payment: If the at-fault driver’s insurer denies liability, you may end up paying for repairs out of pocket.
- Time-Consuming: Dealing with another insurance company can involve endless calls and emails, delaying your vehicle’s repair or replacement.
- Potential for Disputes: Without legal representation, you may have little leverage to argue for fair compensation.
By filing a first-party claim, you sidestep these issues and ensure a smoother, more predictable process.
The Bottom Line: First-Party Claims Are Your Best Bet
When you have full coverage auto insurance, filing a first-party claim should always be your first move after an accident. While it may require paying a deductible upfront, the benefits far outweigh the temporary cost:
- Faster claim processing and payouts
- Guaranteed protection under your insurance contract
- Potential reimbursement of your deductible through subrogation
And remember: The idea that filing a claim will automatically raise your premiums is a fairy tale. Your driving history—not your claims activity—is the primary factor in your insurance rates.
Protect Yourself: Always Carry Full Coverage
Accidents are unpredictable, and relying solely on liability insurance leaves you vulnerable. Full coverage ensures you’re protected no matter who’s at fault. If you’re unsure about your policy or have questions about filing claims, contact an experienced auto property damage attorney to guide you through the process.
At Prime Property Law, we specialize in helping drivers navigate the complex world of auto insurance claims. Contact us today for a free consultation and let us handle the legalities while you focus on getting back on the road.