First party coverage in an auto accident Lawyer Manual

There are generally five types of first-party coverage:

• Medical Payments - covers an insured’s medical costs arising out of an accident involving a covered vehicle; can cover the insured’s passengers too
• Comprehensive – covers property damage to an insured’s covered vehicle arising out of losses other than motor vehicle accident – e.g., theft, fire, vandalism. There is usually a deductible;
• Collision – covers property damage to an insured’s covered vehicle arising out of an accident. There is often a deductible;
• Uninsured Motorist – covers personal injury and property damage to an insured, from an accident where the at-fault party had no insurance;
• Underinsured Motorist – covers personal injury and property damage to an insured from an accident where the at-fault party had low liability limits, below the limits of the insureds.  

If a car is financed, the finance company will typically demand that the buyer purchase Comprehensive and Collision Insurance and name the finance company as an additional insured. This way, if the car is damaged and there is no other insurance, the finance company has a significant level of certainty that their client’s insurance will pay to fix the vehicle, upon which the finance company has a lien.