Typically, an insurance policy will cover two types of claims: first-party claims and third-party claims. [substeps] A " first party " claim is one paid directly to the insured.
[header] How to sue a car insurance company [title] Understand automobile insurance. [step] An insurance policy is a contract between the insured and the insurance company. The insured pays premiums and the insurance company, in exchange, agrees to cover the cost of certain claims.