First-party coverage is insurance that may help pay for the policyholder’s losses or damages. This can include damage to your vehicle and medical expenses in the event of an accident. First-party coverage is typically provided by the policyholder’s insurance carrier.
Unlike third-party coverage, which applies to the potential compensation for damage you might cause to others, a policy that includes first-party coverage is designed to help compensate the policyholder. This coverage may also pay for damages regardless of fault, depending on the coverage type and policy terms.
Having first-party coverage from your insurance carrier may be especially helpful in instances like an accident with an uninsured motorist, damage from weather or theft, or an accident where you require urgent medical attention.
Types of first-party coverage
There are multiple types of first-party coverage an insurance policy can include.
Collision coverage
Collision coverage may help cover the cost of repairs to your vehicle when it’s damaged in an accident with another vehicle, regardless of fault. Collision coverage may apply to:
- An accident involving another vehicle or multiple vehicles
- A collision with an object, like a fence or sign
Comprehensive coverage
Comprehensive coverage may pay for damage to your vehicle that stems from incidents not involving a driving collision, which may include:
- Theft
- Vandalism
- Weather-related damage
- Damage from hitting an animal
Personal injury protection (PIP)
PIP is an element of first-party coverage that may help cover medical expenses for the policyholder and passengers, regardless of who is at fault in an accident. PIP is required by law in certain states like Oregon and Florida. While insurance plans may differ, PIP can potentially cover expenses for:
- Medical bills
- Hospital stays
- Lost wages
- Rehabilitation
- Funeral costs
Limitations and exclusions of first-party coverage
A policy may have limitations and exclusions for first-party coverage, and these terms may differ depending on the policy or carrier. Limits may include:
- Maximum payout for each coverage type
- Incidents that do not qualify for coverage
- Restrictions on the age or condition of the vehicle
- Time frame for filing a claim
About deductibles
Often, first-party coverage includes deductibles, which are the amount you pay before the policy pays toward the costs of a claim. When a policy has a lower premium, this may be accompanied by higher deductibles, so it’s important to be aware of these numbers when choosing your coverage.
Explore your first-party coverage options
Infinity Insurance Agency, Inc. (IIA) works with carriers that offer a range of car insurance coverages. Talk to one of our agents to learn more about what first-party coverage is available to you.
Call IIA at 1-855-478-3705 or contact us online for a free quote today.