In an insurance claim, the “first party” typically refers to you, and a third party is the other person who damaged your property or injured you. There are different types of insurance policies in Kentucky, some of which only cover the costs of either first-party or third-party damage.
Filing an insurance claim
Before starting a personal injury claim, you should consider your options in a first-party or third-party insurance claim. It’s important to pursue the right type of claim for your situation. In some instances, you could seek both types to compensate your medical bills, lost wages and other incurred costs.
Examples of third-party insurance
Auto liability insurance, commercial motor vehicle liability coverage, product liability coverage and homeowner’s coverage are examples of third-party insurance in Kentucky. If someone is at fault for damaging your property or injures you, you could file a third-party claim against their insurance company.
In some Kentucky third-party insurance claims, the first party is the policy holder, and the third party is the injured person. This might happen if someone gets injured on your property and uses your homeowner’s coverage to get compensation.
Unlimited compensation from third-party insurance
First-party insurance in Kentucky has a limit to how much you can recover from an insurance claim. When you file for third-party insurance, there may not be a cap on how much compensation you could receive.
Required third-party insurance in Kentucky
You need to have bodily injury insurance in Kentucky. This type of coverage covers the costs of injuries you cause to another person in an accident. Note that some types of first-party insurance are also mandatory in Kentucky, so bodily injury isn’t the only type of coverage you need.
Third-party insurance protects you from the costs you cause to another person in an accident as well as the costs another causes for you in an accident. It depends on who is at fault. The person who doesn’t have fault for the accident is typically responsible for filing a claim with the other party’s insurance company.