What Is First Party Insurance?

First party insurance refers to coverage provided by a policyholder’s own insurance company for losses or damages they experience, regardless of fault. In personal injury law, first party insurance can include medical payments (MedPay), personal injury protection (PIP), or uninsured/underinsured motorist coverage.

Common Types of First Party Insurance

• Medical Payments (MedPay): Covers medical expenses for injuries sustained in an accident.
• Personal Injury Protection (PIP): Includes medical costs, lost wages, and other expenses regardless of fault.
• Uninsured/Underinsured Motorist Coverage: Protects policyholders when the at-fault party lacks sufficient insurance.

Role in Personal Injury Claims

• Immediate Support: Provides quick compensation for expenses without waiting for liability determinations.
• Supplemental Coverage: Complements other insurance or settlements when damages exceed primary coverage.
• Negotiating Power: Helps plaintiffs recover partial compensation while pursuing additional damages from liable parties.

First party insurance ensures victims have access to necessary financial resources while their claims are being resolved.

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