Personal Injury Protection (PIP) implements the no-fault concept. States that have no-fault laws require drivers to buy PIP. This first-party coverage is a broader form of medical payments insurance. It covers lost wages, medical care and the cost to replace services normally performed by the individual injured in an accident. PIP does not cover pain and suffering. This coverage varies from state to state, and similar coverages may be offered as an option in states without no-fault laws.

Auto insurance generally covers your liability for bodily injury and property damage to others, and your costs in case of physical damage to your own car. Specifically, consumers may purchase:

• Personal Injury Protection / No-Fault - This is first party coverage. This coverage pays your medical bills and lost wages if you are injured in an accident, regardless of fault in the accident.
• Uninsured / Underinsured Motorists - These are first party coverage. UM/UIM pay for your personal injuries (UM Bodily Injury) and damage to your vehicle (UM Property Damage) if you are involved in an accident with another person, the other person is at fault, and the other person has insufficient (or no) insurance to pay the claims.
• Collision - This is first party coverage. This coverage pays the cost to repair or replace your car if it is damaged in an accident, regardless of whether it was your fault or the fault of a third party.
• Comprehensive - This is first party coverage. This coverage pays for the cost to repair or replace your car for damage caused by causes other than collision with another vehicle or object. The most common causes of loss under comprehensive are theft, vandalism, and weather-related damage. In auto insurance, there is first party coverage. First party coverage covers you and your property (such as medical expenses, damage to your vehicle, the insurance company's duty to defend you in the event that you are sued as the result of your operation of a vehicle, etc.). The coverage (and exclusions) are set forth in a contract with an insurance company. In exchange for the payment of a premium, the insurance company promises to provide compensation in the event of certain occurrences. There are many coverage options available from insurance companies and sometimes options that are available from one company are not available from another company, in addition to a variety of costs for comparable coverage from different insurance companies.

Insurers consider you and family members living in your house “first parties” in the contract. Your insurer is the “second party” to the contract. Under liability insurance, the first party is protected by the second party from suits by a third party. High jury awards have become commonplace, making this coverage a necessity. Be sure you purchase adequate limits to protect your assets in the event you are held liable for an accident that results in serious injury or death to others. In some states, the courts have expanded third-party liability to allow family members to sue each other. Some liability coverages protect against intra-family liability, while others do not.