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You are driving along, and just like the often-showed Volkswagen commercial, BAM, a car or truck slams into the vehicle you and your passengers are driving in. Thankfully, in the commercial anyway, everyone in both cars' is all right. That may be one of the few similarities between the driver of the car that caused the accident and the driver who did not.

This ad does a good job of relaying the importance of safety when you purchase a car or truck. However, where are the ads from insurance companies or consumer advocates that can help you avoid the confusion, costs, arguments, accusations, problems, and wasted time that often accompany these accidents by explaining the difference it makes if you did or did not cause the accident?

If you are at fault what you are entitled to under the terms of your insurance policy differs greatly from what you are entitled to under the terms of the insurance policy of the person who caused the accident. The terms you need to be familiar with are "first party" and "third party" claims. A clear understanding of these terms will save you time and aggravation during the claims process, but most importantly could ensure you receive all the money you are entitled to.

"Most consumers have little idea of the potential financial consequences of filing a claim with their insurance company as a first party claim when they were not at fault," said Stephen Regan, a spokesman for the Massachusetts Auto Body Association (MABA). "Often times this can lead their insurer to limit certain payments, such as rental reimbursement limits they chose when they took out the policy, even though, since they were not at fault, there should be no limit to rental or any other costs the incur as a result of the accident," he added.

Under Massachusetts law all insurers are required to provide language in every insurance policy that states that they will pay on behalf of their insured "any" cost that the third party has suffered as a result of the accident. M.G.L Chapter 90 Section 34O states the following: Every policy of property damage liability insurance shall provide that the insurer will pay on behalf of the insured all sums the insured shall become legally obligated to pay as damages because of injury to or destruction of property.

This language is contained within your insurance policy under Compulsory Insurance, PART 4: Damage to Someone Else's Property. The language in the policy reads as follows: "Under this part, we will pay damages to someone else, whose auto or other property is damaged in an accident. The damages we pay are the amounts that person is legally entitled to collect for property damage through a court judgment or settlement."

Regan also suggested that if you are not at fault in the accident that you are better of not filing a first party claim through your insurance company. He said most people often end up doing so because they are not provided enough information to make a decision whether they should file a first party claim, or a third party claim, when they initially contact their own insurer about the accident.

"You must notify your insurer, but if you are not at fault you do not have to file a first party claim through your own insurer. Most people who contact their insurer after an accident automatically start a claim under their policy and may not even the aware of their options for first party and third party claims," said Regan. "Most insurers could do a better job of informing their customers of these options once the at-fault party has become reasonably clear," he concluded.

Why Consumers Should Know About "Who" Caused The Accident?