[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.
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.