Suppose that an insured car owner went shopping and found a large dent in the car’s door, after coming from the store into the parking lot. As a result of that discovery the same car owner would have a reason for filing a 1st party claim with his own insurance company.

Actions taken by insurer, after receiving a 1st party claim:

• Studies the policyholder’s contract/policy, in order to learn whether or not the reported damage is covered by the policy’s terms.

• Checks to see who can be held liable for the damage.

• Looks for a way to minimize the amount of money that must be paid to the policyholder. Checks to see if the claimant/policyholder was partly responsible for the reported loss.

Questions that the insurer might ask, if the claimant had reported extensive damage:

• Did the policyholder have uninsured motorist protection?
• Did the policyholder have underinsured motorist protection?

The history of the uninsured motorist option

More than 50 years ago, car owners that bought automobile insurance did not get offered a chance to buy uninsured motorist coverage. The insurance companies did not include that option among the options that were available to their customers.

So, what would happen if an uninsured motorist hit an insured car? In that case, the policyholder could make a first party claim, in order to seek compensation for the damages. If the claimant/policyholder felt cheated by the insurance company, then he or she could file a lawsuit.

The insurance companies became the target of so many lawsuits that they decided to offer the uninsured motorist protection. That way, they could have a larger pool of money to use, when policyholders submitted a 1st party claim.

Among all the policyholders that welcomed introduction of the new option/protection, at least one regretted the insurance companies’ delayed action. Earlier, that one policyholder failed to initiate a lawsuit, upon learning how the insurer planned to cover the damages caused by rear-end hit, one that was made by a drunk driver.

That policyholder’s insurer had tried to minimize the amount of money needed to pay the claimant/policyholder. Since the impact had forced the claimant’s station wagon to ram into the automobile in front of it, the insurer charged the claimant for the damage to that 3rd involved vehicle. In that way, the insurer had succeeded in reducing the size of the award that it owed to its one customer/policyholder.

Today, insurers in a similar situation study the terms of the contract with the uninsured motorist protection. They might also look to see if the claimant/policyholder has purchased underinsured motorist protection. Furthermore, Personal Injury Lawyer in Moncton knows that any such insurer would have a larger pool of money to use, when paying for the reported damage.