Third-Party Claim

A Third-Party Claim is a claim you file against the at-fault driver's insurance policy. You don't pay a deductible, but you also don't have policy rights with that carrier, including the appraisal clause.

More detail

That insurer can agree to an appraisal, but it doesn't have to. You can also file a first-party claim under your own policy, where its appraisal clause, if it has one, applies, and your insurer can pursue subrogation against the at-fault carrier. In some states, we can serve as your appraiser only under your own policy or if the other driver's insurer agrees. The choice is yours.
Some states require third-party carriers to deal in good faith with claimants under unfair-claims-practices statutes, even without contractual privity.

Related terms

First-Party Claim

A First-Party Claim is a claim you file against your own insurance policy (under collision or comprehensive coverage). You pay the deductible but typically have access to the appraisal clause and other policy protections.

Appraisal Clause

Most auto policies include an appraisal clause that lets either party demand an appraisal when you can't agree on the vehicle's actual cash value. Your policy's own clause sets the terms. When invoked, you and the insurer each select a competent independent appraiser, and typically those two appraisers will agree to a new actual cash value. In the event those two appraisers are unable to agree on a value, the two appraisers can select an Umpire to break ties. Typically, you will split the cost of the third appraiser/umpire with the insurance carrier 50/50. In the event that the two appraisers are unable to agree on an umpire, the insured or the insurance carrier can petition a court with jurisdiction to select one. This rarely happens, but the chance isn't zero. A decision agreed to by two of the three sets the amount, as your policy's clause provides.

Free review first

Need help with a real total-loss claim?

Your consultation and offer review are free. The Appointed Appraiser Service is $495. It includes the Appraisal Research, our appointment as your appraiser under the appraisal clause of your policy, if it has one, determining the amount of loss with your insurer's appraiser, and the appraisal award letter.

At least $1,000 more, or your fee is waived. This applies once we accept your consultation and serve as your appraiser. The starting point is your insurer's offer on the day we accept. If the appraisal award, or a higher offer your insurer makes instead, is less than $1,000 above it, we waive our $495 Appointed Appraiser Service fee. If an umpire is needed, the umpire's fee is separate. We pre-authorize your card only after we accept your consultation, so there's no upfront payment.

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