First-Party vs. Third-Party Insurance Claims

After a personal injury in Kentucky, such as a car accident or falling on someone’s property, you will likely have medical and other bills. Your first step to financial recovery is to file an insurance claim, but who should pay?

Let’s examine first-party vs. third-party insurance claims and which one might be best for you, with guidance from an experienced Lexington car accident attorney. 

When You Might File a First-Party Insurance Claim

A first-party claim is one against your own insurance policy, such as health insurance, Personal Injury Protection (PIP), or Uninsured/Underinsured Motorist coverage.

In the case of a car accident, The Department of Insurance states that you must carry PIP to pay for your own injuries as a first option, since Kentucky is a “choice at-fault” state. 

At a minimum, a PIP policy can provide up to $10,000 for each person injured in a crash to pay for medical costs, lost income, and other associated out-of-pocket expenses. You can buy a policy with higher payment limits, if you wish.

You can also choose to use your personal health insurance to supplement your PIP coverage, while you and your attorney determine if someone else is to blame for your injury.

Another time you may need to file a first-party claim against your own insurance is if you get hurt on another person’s property, such as in a store or home. Under the common law doctrine of premises liability owners must take care to keep their property free of hazards.

If someone fails to fix an obvious danger, you could file a lawsuit, but using your health insurance in the meantime means you’re not left with unpaid bills.

When to File a Third-Party Insurance Claim

In insurance claims, the first party is the policyholder, the insurance company is the second party, and you are the third party who was injured.

A third-party insurance claim may be necessary when you can clearly demonstrate that another person is at fault for your illness, injury, or property damage. 

Situations where you may file a third-party claim include:

• Filing against a homeowner’s insurance policy if you fall on their broken porch steps
• Filing against a manufacturer, distributor, or seller under their product liability insurance
• Filing a claim as an injured motorcyclist

In car accident claims, you may have the right to file a claim against the other driver’s liability insurance. You can pursue this claim if expenses exceed your PIP limits and you suffered serious injury, defined in Kentucky law as medical bills exceeding $1,000, disfigurement, broken bone, or other factors.

If the insurance company refuses to pay, you could proceed with a third-party lawsuit.

Consult With Gary C. Johnson to Discuss Your Legal Options Today

Kentucky laws surrounding first-party and third-party insurance claims are complicated and it’s easy to make a mistake that could leave you with less than you deserve.

Instead of trying to understand technical jargon and handle confusing paperwork, turn to a skilled personal injury lawyer at Gary C. Johnson P.S.C. You can contact us to schedule a free consultation and get the answers you need.