Your automobile insurance company is not your friend.

No matter how many years you faithfully pay premiums the second you report a loss your "good neighbor" becomes an angry and suspicious adversary. A basic understanding of insurance policy construction will help you protect your interests.

The coverages purchased are listed on a declarations sheet. You should find one of these "dec" sheets with your billing information or saved from an online purchase.

First party vs third party coverage. First party claims are made by a party to whom insurance coverage is extended by purchase or relationship to the purchaser of the policy. Your insurance policy provides you with first party benefits. First party benefits include collision, comprehensive, medical payments and personal injury protection (PIP) and underinsured motorist coverage (UIM). Your company owes you a duty to adjust such claims in good faith.

Third party coverage is coverage extended to non-policy holders damaged due to the fault of someone covered by the policy. This coverage will be denomianted as property damage aka PD and bodily injury aka BI. The coverage amount must meet the statutory minimum and is generally expressed as a split limit such as $100,000/300,000. In Washington an insurance company has almost no duty of good faith and fair treatment to third party claimants.