When something goes wrong, the first question is usually “who pays?” The Tennessee Department of Commerce and Insurance (TDCI) glossary gives the two basic answers. A first-party claim is “a claim filed by an insured against his or her own insurance policy.” A third-party claim is “a claim filed against another person's insurance policy.” Knowing which one you are in shapes who you call, who sends the adjuster, and what can happen to your deductible.
| Term | TDCI glossary definition | Everyday example |
|---|---|---|
| First-party claim | A claim filed by an insured against his or her own insurance policy | You claim under your own collision coverage after a crash |
| Third-party claim | A claim filed against another person's insurance policy | You claim against the at-fault driver's liability coverage |
| Subrogation | Assignment of rights of recovery from insured | Your insurer pays you, then seeks recovery from the at-fault party |
| Collision coverage | Pays for damage to a car without regard to who caused an accident | Repairs to your car up to actual cash value, minus the deductible |
Source: TDCI Glossary of Insurance Terms. Examples are general illustrations, not coverage promises.
A first-party claim runs through your own policy
When you file against your own policy, your insurer handles the claim under your contract: your coverages, your limits, and your deductible. TDCI's glossary describes collision coverage as paying for damage to a car “without regard to who caused an accident,” up to the vehicle's actual cash value minus the deductible. That is why many drivers use their own collision coverage when fault is disputed or the other driver's insurer is slow.
A third-party claim runs through someone else's policy
When another driver causes a wreck, you can file against that driver's liability insurance. TDCI says liability insurance pays for injuries to the other party and damages to the other vehicle resulting from an accident the policyholder caused. In a third-party claim, you are the claimant, which TDCI defines simply as a person who makes an insurance claim, and the adjuster works for the other person's insurer. TDCI describes an adjuster as an individual employed by an insurer to evaluate losses and settle policyholder claims.
Subrogation connects the two
TDCI defines subrogation as the “assignment of rights of recovery from insured.” In plain terms, after your insurer pays your first-party claim, your right to recover from the person who caused the damage can pass to your insurer, which may then pursue that recovery itself. Whether and how any deductible is returned through subrogation depends on your policy and on what is actually recovered, so ask your insurer how it handles that.
Practical steps after a loss
- Get the other party's name, insurer, and policy number, and photograph the damage.
- Decide with your agent whether to start with your own policy or the other person's, especially if fault is disputed.
- Know the difference between your own coverages: TDCI’s glossary separates collision coverage from comprehensive coverage.
- If the at-fault driver has little or no insurance, see TDCI’s glossary defines uninsured and underinsured motorist coverage.
- Know what the at-fault driver is required to carry: Tennessee’s auto liability minimum is 25/50/25 — here is what TDCI’s Auto Insurance 101 page says.
- A repaired car can still be worth less: TDCI glossary defines diminished value after a vehicle accident.
- Choose deductibles you can actually pay: Understanding Home Insurance Deductibles in Tennessee: How to Choose the Right Amount and Avoid Costly Surprises.
- If a claim stalls, TDCI accepts consumer complaints: How Tennesseans file an insurance complaint with TDCI’s Consumer Insurance Services.
Related reading from All Seasons
- TDCI’s glossary separates collision coverage from comprehensive coverage.
- TDCI’s glossary defines uninsured and underinsured motorist coverage.
- Tennessee’s auto liability minimum is 25/50/25 — here is what TDCI’s Auto Insurance 101 page says.
- TDCI glossary defines diminished value after a vehicle accident.
- Understanding Home Insurance Deductibles in Tennessee: How to Choose the Right Amount and Avoid Costly Surprises
- How Tennesseans file an insurance complaint with TDCI’s Consumer Insurance Services.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
What is a first-party claim?
TDCI defines it as a claim filed by an insured against his or her own insurance policy.
What is a third-party claim?
TDCI defines it as a claim filed against another person's insurance policy, such as the at-fault driver's liability coverage.
What does subrogation mean?
TDCI defines subrogation as assignment of rights of recovery from insured. After paying you, your insurer may pursue recovery from the party who caused the loss.
Can I use my own collision coverage if the other driver was at fault?
TDCI says collision coverage pays for damage to a car without regard to who caused an accident, up to actual cash value minus the deductible. Your policy terms control.
Who does the adjuster work for?
TDCI describes an adjuster as an individual employed by an insurer to evaluate losses and settle policyholder claims. In a third-party claim, that is the other person's insurer.
Will I get my deductible back?
It depends on your policy and on what is recovered through subrogation. Ask your insurer how it handles deductible recovery.
What is a claimant?
TDCI defines a claimant as a person who makes an insurance claim.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
