Auto and Car Insurance

Vehicle Insurance coverage?

Whats the difference between a 'First Party' and 'Third Party' insurance?

Public Comments

1. First party benefits cover your medical expenses, even when you are at fault. Third party benefits are liability benefits in case you injure someone and are at fault. If you are injured and at fault, you will draw from first party. If you injure someone else and you are at fault, they will get paid under third party coverage. A good rule for buying auto insurance is to maximize your own benefits (first party) while keeping liability insurance to a reasonable minimum unless your net worth is high, in which case you should consider more liability (third party) coverage.
2. 1st party insurance is insurance that covers the policyholder. Collision, comprehensive, rental, uninsured motorists...these coverages apply to the policyholder and those named insureds. 3rd party applies to those bringing a claim against the policyholder. For example, if you rear end someone, the person you rear end can file a claim against you under your property damage coverage.