First-party vs third-party auto claims in Florida: what's the difference?

Want the whole path from the crash to pickup? See the step-by-step claim process.

The definitions

First-party claim: a claim you make on your own insurance policy. You’re the “first party” because you’re the one who bought the policy.

Third-party claim: a claim you make against someone else’s policy, because their driver caused the damage. The NAIC defines a third party as a “person other than the insured or insurer who has incurred losses” and is entitled to payment because of the insured’s acts.^[1]

Subrogation: when your insurer pays you and then goes after the party who caused the loss to get its money back.^[1]

Florida no-fault and why PIP won’t fix your car

Florida is a no-fault state. Every vehicle registered in Florida must carry personal injury protection (PIP).^[2] PIP pays up to $10,000 in medical and disability benefits for “bodily injury, sickness, disease, or death,” no matter who caused the crash.^[3]

“No-fault” applies to injuries. It does not apply to your car. DFS says plainly that PIP doesn’t cover vehicle damage.^[2] So fault still matters for your car, and you still pick between a first-party and third-party claim.

You may have heard Florida repealed PIP. As of the 2026 session, it hasn’t; repeal bills were filed but did not pass.^[4]

Property damage liability: what the other driver must carry

Florida requires every owner or operator of a vehicle that must be registered in the state to carry property damage liability of at least $10,000 for “damage to, or destruction of, property of others in any one crash.”^[5]

This is the coverage that pays a third-party claim. Two things to know:

• $10,000 is a minimum, and it covers everything the driver damaged in that crash. If several cars or a building were hit, they share the same limit.
• Repairs can cost more than that. If the damage goes over the at-fault driver’s limit, your own collision coverage may pick up the rest (minus your deductible), or you may have a claim against the driver personally. Check with your insurer or an attorney.

Collision coverage: your own policy

Collision coverage “pays for the repair or actual cash value of your insured vehicle” when it hits another vehicle or object or rolls over.^[2] Florida doesn’t require it, but your lender or leasing company usually does. It pays no matter who caused the crash.

Who pays, and when

Sources for the table: collision and rental^[2]; PD minimum^[5]; estimate copy and third-party rules^[6]; subrogation and deductible^[7]; shop choice^[8].

Fault isn’t always all-or-nothing. In most Florida negligence cases, a person found more than 50 percent at fault for their own harm “may not recover any damages.”^[9] If fault is shared, a third-party claim may pay only part, or nothing. That’s when your own collision coverage matters.

Deductibles and getting yours back

On a first-party claim you pay your collision deductible. If the other driver was at fault, your insurer may pursue the other driver’s insurer (subrogation). If it recovers, you’re reimbursed for your deductible too.^[7] How much comes back, and when, depends on what the insurer recovers. Ask your adjuster to keep you posted.

The other driver was at fault, but their insurer is slow or says no

This is where most people get stuck. Your options:

1. Push the third-party claim. Send the other insurer your photos, police report and our estimate. When liability and damages are reasonably clear, Florida law bars that insurer from recommending you use your own policy “solely to avoid paying the claim.”^[6]
2. Switch to your own collision coverage. If you have it, you can file first-party, pay your deductible, get the car fixed, and let your insurer chase the other company through subrogation. This is often the faster route when the other insurer is slow.
3. Ask DFS for help. DFS mediation covers vehicle property damage claims of any amount, including third-party claims. It’s non-binding, and the insurer pays the mediation cost. Call 1-877-693-5236.^[10]
4. Talk to an attorney if they deny fault or the damage is large. Deadlines to sue apply, and some are as short as two years.^[11]

Uninsured and underinsured drivers

Some drivers carry no insurance, or only the minimum. In Florida, uninsured/underinsured motorist (UM) coverage pays for “bodily injury, sickness, or disease, including death.”^[12] The Florida UM statute does not mention damage to your car, and DFS describes UM in terms of injuries, not vehicle damage.^[2]

What that means for your car: if an uninsured driver hits you, your car is usually fixed through your own collision coverage, and you pay your deductible. Without collision coverage, you may be left to recover from the driver directly. Check your policy for any special rules on uninsured-driver crashes, and check with your insurer or an attorney.

Rental cars under each claim

• First-party: only if you bought rental reimbursement, which DFS says usually requires comprehensive and collision. You often pay first and send receipts.^[2]
• Third-party: ask the at-fault driver’s adjuster whether they’ll pay for a rental while your car is repaired, and get the daily amount and number of days in writing.

Timelines and your duty to cooperate

• Report fast. DFS warns a claim may be denied if not reported “in a timely manner.”^[8]
• Insurer acknowledgment. Florida rules generally require an insurer to acknowledge a claim communication within 14 calendar days.^[13]
• Payment after you agree. Once you and an insurer agree on a settlement in writing, payment is due within 20 days unless the agreement says otherwise.^[14]
• Cooperate. Your own policy lists duties after a loss, like giving a statement, showing the car and sending documents. On a third-party claim, the other insurer will ask for similar proof. Answer calls, send what’s asked, and keep copies. DFS tells drivers to review their policy to understand their duties.^[8]

For what happens at each stage, from the police report to pickup, see the step-by-step claim process.

How the shop helps either way

We accept all claims and work with all insurance companies, whether you’re filing on your own policy or the other driver’s.

• First-party: we work with your adjuster, send supplements for hidden damage and push for OEM parts.
• Third-party: we send the at-fault driver’s insurer the photos and line-item estimate it needs. If that claim stalls, we can explain how switching to your collision coverage would work, so you can decide.
• Both: a written estimate under Florida’s Motor Vehicle Repair Act^[15], updates as the work moves, collision repair to the manufacturer’s procedures, and a lifetime warranty on all work, with written terms given with your estimate.