First Party Claims 

First party claims are filed under your own valid auto insurance policy. This is a contractual relationship—in return for premiums, your insurer agrees to provide coverage for the vehicles listed on your policy. You are designated as the Insured.

If you dispute your diminished value or actual cash value (particularly in a total loss scenario), your rights are protected under a policy provision known as The Appraisal Clause. This process—also called exercising your rights of appraisal—allows you to challenge the insurer’s valuation. Important: Diminished value is something owed to you under qualifying circumstances.

Third Party Claims 

Third party claims are filed against the policy of an at-fault driver—someone other than yourself. In this case, you are classified as a Claimant in the claims process.

Disputes over these claims are typically resolved through negotiation or legal action. However, you must specifically request compensation for diminished value. If you don’t ask, the insurer is not required to include it in their payout.