First Party vs. Third Party
First party claims are those where the “the insured” has a direct contract with an insurance company. For example, if the insured was driving and accidentally hit a dear then the insured would turn the diminished value claim into their insurance company. Depending upon the insured’s state of residence and insurance policy language, we estimate that diminished value is owed in approximately 50% of the claims. First party diminished value claims vary significantly depending on the insured’s policy and whether they are claiming diminished value under the collision, underinsured part of the policy, or the uninsured part of the motorist coverage.
Conversely, third party diminished value claims are considered more matter-of-fact, with an estimated 99% of claimants having the right to recover diminished value. Simply stated, tort law allows for the innocent party to be entitled to monetary compensation, a.k.a. to be ”made whole”. As the decrease in the claimant’s vehicle’s value is part of the damage caused by the insured, the claimant is entitled to monetary funds for diminished value.
Diminished value claims typically settle within thirty to sixty days if the claimant uses a reputable diminished value company, such as Autoloss. The appraisal is usually completed within a few days and faxed into the insurance company. Claimants typically have a diminished value check for thousands of dollars within 30-60 days.
As there are many types of first party claims, it is prudent to give Autoloss a call regardless of the type of claim so a licensed diminished value professional can go over the claim with you – typically for free.