What Is First-Party Coverage and Why Does It Matter After a Wreck?

We’ve talked about liability coverage—insurance that pays others when you cause a wreck. But what about when you’re the one who’s hurt, and no one else is stepping up to cover the costs? That’s where first-party coverage comes in.

If you’ve never looked closely at your car insurance policy, you might not even know this coverage exists. Let’s break it down in plain terms.

First-Party Coverage: What It Means

“First-party” just means you, the policyholder. So first-party coverage includes the parts of your policy that help you directly when something goes wrong.

Here are the most common types:

1. Medical Payments Coverage (MedPay)

MedPay helps cover medical bills if you’re injured in a wreck—regardless of who caused it. It usually kicks in quickly, and can be a lifesaver if you don’t have great health insurance (or if you just want to avoid using it).

Even a small amount—like $1,000 or $5,000—can help cover:

• Ambulance rides

• ER visits

• X-rays

• Follow-up appointments

2. Collision Coverage

Collision pays to repair or replace your car after a wreck—no matter who was at fault.

This is especially important if:

• The at-fault driver doesn’t have insurance

• You hit an object (like a tree or pole)

• You’re found partially or fully at fault

It usually comes with a deductible (the amount you pay before insurance kicks in), but it can be a lifesaver if your car is totaled or needs major repairs.

3. Comprehensive Coverage

This covers damage to your car from things other than a wreck, like:

• Theft

• Vandalism

• Fire

• Hitting a deer (yes, that happens a lot in Mississippi)

• Storm or flood damage

If you’re still making payments on your car, your lender probably requires this kind of coverage.

4. Uninsured/Underinsured Motorist Coverage (UM/UIM)

This one is explained in greater detail in a separate blog post, but here’s the short version:

If someone hits you and doesn’t have enough insurance—or any at all—UM/UIM can step in to cover your injuries, lost wages, and pain and suffering.

Mississippi has a high rate of uninsured drivers, so this coverage is more important than you might think.

Why First-Party Coverage Matters

Let’s be real—after a wreck, insurance companies don’t make it easy. Even your own insurer might try to save money by paying you less than you deserve. But having the right first-party coverage in place gives you more options—and more power to recover fully.

And if you’re injured? A good attorney can help you make sure every available policy (yours and the other driver’s) is used to your advantage.