First Party Insurance

Albany | Bend | Coos Bay | Eugene | Grants Pass | Klamath Falls | Medford | East Portland | West Portland | Roseburg | Salem | Tri-Cities | Vancouver | Yakima |

“First Party Benefits” or “First Party Insurance” is another term for insurance coverages that are provided to you and your family regardless of fault in an accident. These benefits may also be referred to as “no-fault” benefits. Insurance is a complex area of law and can seem very dry, but understanding how first party insurance works and how it can protect you and your loved ones is extremely important.

At OlsenDaines, we help Oregon and Washington residents navigate the aftermath of car collisions all the time. Our personal injury attorneys have extensive experience dealing with insurance companies in the aftermath of accidents, and here’s what you should know about it.

What Is First Party Insurance?

In Oregon, Washington, and most states, drivers are required to carry valid car insurance. You must have coverage for:

• Bodily injury (“BI”)
• Property damage
• Personal injury protection (“PIP”)
• Uninsured motorists / underinsured motorists (“UM/UIM”)

Minimum liability and UM/UIM coverage must be at least $25,000/$50,000 and PIP insurance of at least $15,000. These amounts are mandated by the Financial Responsibility Law.

What’s the Difference Between First Party and Third Party Insurance?

• First party insurance is your own insurance. When you get in a car accident and make a claim against your own insurance company, that’s a first party claim.
• Third party insurance is the other party’s insurance. When you get into a car accident that’s the fault of another driver and you sue them and their insurance company for damages, that’s a third party claim. Similarly, if another driver claims you’re at fault and decides to sue you and your insurance, they’re making a third party claim against you. In that case, we recommend contacting an experienced auto collision attorney.

How Does “PIP” Coverage Work?

“PIP” is a “no-fault” or “First Party” benefit. That means that, in the event of an accident, PIP pays for your medical expenses regardless of fault up to one year or $15,000 — whichever comes first. If you wish, you can increase the amount of your PIP coverage by paying for more than the minimum of $15,000.

The minimum PIP coverage not only pays for your medical bills, but it will also pay for other things like loss of income, household services (to replace things you can no longer do at home), and funeral benefits.

Washington allows drivers to elect not to purchase PIP coverage. However, if you do not have PIP coverage and health insurance, you will need to pay for medical treatment upfront. You will also probably need to find a doctor or medical provider who is willing to let you make payments during the time it takes to resolve your personal injury case.

What Is No Fault Insurance?

No-fault insurance means that, regardless of who was to blame for the accident, each driver’s insurer pays their medical expenses, lost wages, and other costs. Even though you are required to carry no-fault insurance in Oregon and Washington, they are not no-fault states.

In practical terms, this means that, unlike other states that are “no-fault” states, in Oregon and Washington, you retain your right to sue the at-fault driver to recover the cost of your medical expenses, lost income, and even pain and suffering.

Experienced Accident Attorneys in Oregon and Washington

If there’s one takeaway from this article we hope you have, it’s to review your existing auto insurance policy so you know what’s included. Understand what your limits are, and what’s covered versus what isn’t.

If you have any questions or you’ve been in an accident and aren’t sure what to do next, the attorneys at OlsenDaines are here to help. We have offices throughout Oregon in Portland, Eugene, Coos Bay, Medford, as well as in Vancouver and Tri-Cities, Washington.

If you have questions or want to schedule a free consultation, give us a call today!