What Is Third-Party Claim?

Definition

A third-party claim is filed with the insurance company of the driver who caused the accident. For diminished value, third-party claims are typically the strongest path because you are pursuing the at-fault party's liability coverage rather than your own policy's exclusions.

Why it matters for your claim

Many auto policies exclude diminished value for first-party claims. If another driver was at fault, filing against their insurer often gives you the best chance of recovering DV.

• You generally need to establish the other party's fault.
• Third-party claims are separate from your collision or comprehensive coverage.
• State law — not just your policy — governs what damages are recoverable.
• Market evidence and repair documentation support your demand.

Common questions