Can someone claim on your car insurance without you knowing?

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Things to remember...
  • When someone files a car insurance claim with your car insurance provider after an accident, the claim is said to be a third party auto insurance claim
  • Third party auto insurance claims are the most common type of car insurance claims in the United States
  • It’s highly unlikely for someone to file a claim on your auto insurance policy without your knowledge, considering that after an at-fault accident, you have to give the other driver your insurance information
  • Additionally, your auto insurance provider must investigate the claim before paying the claim and will call you for more details regarding the accident
  • You may not be able to file a third party claim depending on whether you live in a fault or no-fault state

Car insurance is meant to protect you from financial losses after a car crash. The extent to which you are protected depends on the type of coverage you have, with the most basic level of auto insurance protection being liability coverage. If you are determined to be at fault in an accident involving another driver, you will be held liable for any bodily injuries or damages to their car.

Your auto liability insurance will cover the medical expenses and the cost of repairing the other party’s vehicle. But for that to happen, the other driver must file a claim with your auto insurance provider.

Unless you live in the Virginia or New Hampshire, you will be required to have auto liability coverage to drive legally on US roads. Go online and compare quotes before you purchase an auto insurance policy. Comparison shopping can help you obtain coverage at affordable rates.

Third Party Auto Insurance Claims

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A third party car insurance claim is any claim made against your car insurance policy by anybody else rather than by you (the policyholder). Third party car insurance claims are the most common auto insurance claims in the United States.

If you get into a car accident with another driver and they feel like that have a valid claim, they are free to file a claim with your auto insurance provider.

If for instance, you get into a minor collision with another car at the mall’s parking lot, the driver can file a claim against your auto insurance policy. That is if both of you agree that you are at fault. You are obliged to provide your insurance details to the other party so that they can follow up the claim with your auto insurance provider.

What happens when someone files a third party claim with your auto insurance provider?

After an at-fault accident, you give the other driver your insurance details so that he/she can file a claim with your auto insurer. The person will call your provider, relay the facts of the accident and present a police report showing that you, their policyholder, was at fault.

Your auto insurance provider will take into account factors such as physical evidence, witness statements, and the police report to come up with its own determination of fault.

Your insurer’s decision of who’s at fault may or may not match with the police department’s determination of fault, and in that case, the other driver will be asked to file a claim against his or her insurance company. However, it’s illegal for auto insurance companies to deny a claim when liability is reasonably clear. Insurance providers are also barred from denying claims without reasonably investigating facts.

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No Contractual Obligation

Car insurance companies are for-profit organizations out to make money and as a result, won’t pay a claim unless they have to. Getting a payment from an auto insurance company is not a walk in the park. It gets a lot harder when it’s a third party claim. The auto insurance provider does not have any contractual obligation to the person filing the claim.

However, the company will still pay the claim if it confirms that you really were responsible for the damage. They have to honor the contract in which they promised to protect from losses resulting from such incidents as long as you keep paying your premiums.

Their investigators and adjusters will conduct the necessary investigations. It’s likely that their first step will be to call you so that you can confirm that the accident actually happened.

Therefore, it’s highly unlikely that a third party claim can be filed against your policy without you knowing. If a two-car accident is your fault, you are obliged to provide your insurance information to the other driver. Therefore, it’s not possible to be caught completely off-guard by a third party auto insurance claim. You will be expecting it in the least.

No-Fault States

Penalities for Driving Without Insurance

If you come from a no-fault state, the law requires that you file a claim with your insurance provider regardless on whose fault it is. In a no-fault state, you can only file a third party claim after a certain monetary or injury threshold is met. As a result, third party claims are fewer in no-fault states.

Drivers are required to carry minimum liability requirements in no-fault states. If you are looking to purchase coverage, compare quotes from several providers before you buy. Comparison shopping will help you get the right amount of coverage you need at a reasonable cost.

Fault States

However, if you live in a fault state, you can file a third party car insurance claim without having to file a claim with your insurer first. Therefore, third party claims are more common in fault states.

If your company agrees on your culpability as the policyholder, it will settle a third party claim faster to reduce costs. In other words, the simplicity or complexity of the claim will depend on the disputability of fault.

Upon receiving a third party claim, the insurance provider must determine whether the claim is legitimate or not. They must call you to get your side of the story and to rule out a false claim, which is always a possibility. Therefore, it’s unlikely (if not impossible) for someone to file a claim on your auto insurance policy without you knowing it.

Make sure you are getting the best rates for the coverage you need. Comparison shop with our free quote tool below now!

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