First-party medical payments coverage in auto insurance pays for medical expenses of whom?

• A. The insurer's medical costs for its employees.
• B. Other drivers injured in unrelated accidents.
• C. Injured party's liability damages from third parties.
• D. The insured and passengers in the insured vehicle, regardless of fault.

Answer: (D)

First-party medical payments coverage is designed to cover medical expenses for people inside the insured vehicle. It pays the medical bills of the insured and any passengers in the insured vehicle, regardless of who caused the accident. This is why it’s labeled “first-party”—the insurer pays the policyholder directly for those medical costs. It does not cover medical expenses for people in other cars or for liability damages, and it’s separate from property damage coverage.