October 30, 2010

How First Party Benefits Work For Auto Insurance Policies

States like Pennsylvania require that customers purchase FPB, or first party benefits, when they buy an auto insurance policy. FPB includes various aspects of insurance coverage but the only mandatory aspect is the FPB-medical. This benefit not only provides coverage for the policyholder but also to relatives staying within the same house as well as all the drivers listed as per the insurance policy. While Pennsylvania is the only state in the US to make FPB purchase mandatory when buying auto insurance policies, if you want additional coverage, it makes sense to find out more about FPB.

What It Is

FPB, or first party benefits, are typically a kind of insurance, which covers medical requirements of all those listed per the auto insurance policy. In such cases, the insurance provider assists with all medical expenses that are automobile-related and that have happened due to an accident. With FPB, benefits are offered for the policyholder and all those included in the policy list.


Almost all auto insurance policies that have an extra FPB package will include coverage of all expenses from surgery to even ambulance rides. Certain plans also tend to cover expenses pertaining to trauma occurring due to serious accidents. If there are dental expenses because of an accident, these expenses will also be covered in case of an FPB-medical package. Hence, FPB is a comprehensive package that is designed to provide coverage for all types of medical expenses occurring due to automobile accidents.


The expenses associated with purchasing FPB will depend on several aspects such as gender, age, number of people insured as per the policy, the state as well as type of vehicle driven. The cost for first party benefits will also be based upon any additional coverage, if selected by the customer. In some cases, you could add on further coverage in the case of income loss or funeral expenses apart from standard coverage.

The Advantage of FPB

By appending an FPB to auto insurance policies, it can dramatically reduce expenses payable towards hospital bills. Often, these hospital expenses need not be addressed by conventional insurance policies. This is the biggest reason why most people prefer opting for FPB when purchasing an auto insurance policy. As has been mentioned before, Pennsylvania residents need to purchase FPB if their auto insurance provides insurance for multiple vehicles. With medical expenses escalating each year, purchasing additional coverage by means of FPB can help reduce medical costs significantly. Even though purchasing FPB is mandatory only in Pennsylvania, people across the US prefer to voluntarily buy FPB because of the tremendous cost benefit it provides in case of a medical emergency.