Lowry attorney, D.J. Banovitz can help you determine if you have a valid claim against an insurance company for wrongfully denying or devaluing your accident claim. You may be eligible to pursue legal action by filing a bad faith insurance claim. This can potentially lead to additional compensation.
What Is the Difference between a First Party and Third Party Claim?
A first or third party claim is usually filed as a result of personal injury. If an individual has a policy with an insurance company and is injured, he or she may file a first party claim with that company.
For instance, if a motorist carries automobile insurance with coverage totaling $15,000, and the motorist is injured in an accident, he or she may file a first party claim. The expectation is that the coverage available will take care of expenses, such as property damage or medical bills.
If expenses equal $12,000, the claimant will expect to receive that amount. As long as the policy is in effect and premiums have been paid, the policy is a binding contract between the individual and the insurer.
In a third party claim, a motorist files a claim with another driver’s insurance company. The biggest difference between a first or third party claim that the claimant has no contractual agreement with the other driver’s insurer.
When the other driver is found to be at fault for the accident, the claimant may still receive compensation for medical expenses, lost wages, pain and suffering, and more.
What Could Lead to an Individual Filing a Bad Faith Insurance Claim?
If you are a policyholder who has a contract with an insurance company, and there is no valid reason for your claim’s denial, you may be entitled to file a bad faith insurance claim. If you filed a third party claim, and were entitled to compensation but it was wrongfully denied, you may be able to file a bad faith claim with the third party insurance company.
An insurance company may deny a claim in bad faith for a number of reasons. In some cases, the insurance company may be trying to get out of paying the claimant. They may also try to reduce the coverage to which you are entitled.
Consulting with a Lowry Bad Faith Attorney
Don’t let the insurance company deny your rights. Contact D.J. Banovitz at 303-300-5060 as soon as possible. The sooner you schedule a consultation, the more time there may be to build a solid case. You can also prepare by ordering our free injury guide, 7 Costly Mistakes that Can Ruin Your Colorado Injury Case.