What Is First-Party Coverage or No Fault Coverage for Car Insurance?

First Party or No Fault Coverage is the coverage you carry on your policy which is available even if the accident is the fault of someone else.
In Pennsylvania, all Car Insurance policies require that you carry a minimum of $5,000 in "First-Party", also known as "No Fault" medical coverage. This means that even though it's the other person's fault, the medical is paid for by your insurance. It will not raise your rates. You paid premiums to be insured for that coverage. You might also have "First-Party" or "No Fault" wage loss coverage on your policy. The wage loss coverage is not required, but it can come in handy. Basically, it allows you to receive income loss payments while you are missing work. (If you don't have wage loss coverage, you can recover it from the other driver's insurance but typically can't get that paid to you until the end of the case).

Another important first-party coverage is underinsured motorist and uninsured motorist coverage. This protects you and your family against at-fault drivers who either failed to have liability insurance or did not have enough liability insurance to cover your injuries. Applying for this coverage does not raise your rates. Like medical, you paid premiums to be protected for this. You are eligible to elect "stacking" of uninsured and underinsured coverage - this multiplies your coverage times the number of cars on the policy. So if you have $100,000 in underinsured motorist benefits, and stacking with 4 cars, you have $400,000 in coverage.

These are important coverages to ask your company's adjuster about after a car accident. They are also important to go over with your insurance agent when you purchase or renew your policy. You can add or change these coverages at any time - you do not have to wait until your policy comes up for renewal.