# Third-party claim

> Third-party claims explained: filing against the at-fault driver's car insurance, how it differs from a claim on your own policy and what to expect.

Canonical page: https://statecover-guide.com/glossary/third-party-claim/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

A third-party claim is a claim made against another person's insurance, typically the liability coverage of the driver who caused the crash. You are the "third party" because you are not part of that driver's insurance contract.

## How it works

In insurance language, the policyholder is the first party and the insurer is the second party. California's insurance department defines a third party as someone other than the policyholder or the insurer who suffered a loss and may be able to collect under the policy because of the policyholder's negligence.

Compared with a first-party claim on your own coverage:

- **No deductible.** The Texas Department of Insurance notes that you do not pay a deductible on claims against another driver's insurance company.
- **Fault must be shown.** The other insurer pays only if its driver is legally responsible. Driver details, witness names, photos and the police report help prove it.
- **Different rules.** In Texas, the prompt-payment deadlines that apply to your own insurer do not apply to the other driver's company, though it must still act in good faith and try to settle fairly.
- **Backup option.** If the other insurer refuses to pay, you can file with your own insurer under collision coverage, pay your deductible, and let your insurer try to collect from the other company.

Example: another driver rear-ends you and admits fault. You file a third-party claim with their insurer for your $2,500 repair and a rental car, with no deductible.

## Related terms

- [First-party claim](https://statecover-guide.com/glossary/first-party-claim/)
- [Subrogation](https://statecover-guide.com/glossary/subrogation/)
- [At-fault](https://statecover-guide.com/glossary/at-fault/)
- [Liability insurance](https://statecover-guide.com/glossary/liability-insurance/)
- Guide: [Filing a car insurance claim](https://statecover-guide.com/claims/filing-a-claim/)

## Sources

- [California Department of Insurance, Automobile Insurance Terms](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/autoterms.cfm) — definitions of first party, second party and third party
- [Texas Department of Insurance, Auto insurance guide](https://www.tdi.texas.gov/pubs/consumer/cb020.html) — deductibles, proving fault, prompt payment rules and using your own coverage when the other insurer refuses