# Policyholder

> Policyholder defined: who owns a car insurance contract and pays for it, and how that differs from the named insured, insureds and third parties.

Canonical page: https://statecover-guide.com/glossary/policyholder/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

The policyholder is the person, or business, who owns an insurance policy and pays the premium. In insurance language, the policyholder is the "first party" to the contract and the insurance company is the "second party."

## How it works

California's insurance department describes a policy as a contract stating the rights and duties of the insurer and the insured. Several related words describe who is involved:

- **Policyholder:** owns the contract and pays for it.
- **Named insured:** the person the policy names as the insured, usually the policyholder.
- **Insured:** anyone the policy covers, which can include household members and people driving with permission.
- **Third party:** someone outside the contract, such as another driver you injure, who may be able to collect under your policy because of your actions.

These roles shape how claims work. A claim you make on your own coverage, such as collision, is a first-party claim. A claim another person makes against your liability coverage is a third-party claim.

Example: you own the policy and your spouse is listed as a driver. You are the policyholder, both of you are insureds, and a pedestrian your spouse hits while driving your car would be a third party.

## Related terms

- [Named insured](https://statecover-guide.com/glossary/named-insured/)
- [Insured](https://statecover-guide.com/glossary/insured/)
- [First-party claim](https://statecover-guide.com/glossary/first-party-claim/)
- [Third-party claim](https://statecover-guide.com/glossary/third-party-claim/)
- Guide: [Filing a car insurance claim](https://statecover-guide.com/claims/filing-a-claim/)

## Sources

- [California Department of Insurance, Automobile Insurance Terms](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/autoterms.cfm) — first party, second party, third party, insured and policy
- [NAIC, Glossary of insurance terms](https://content.naic.org/glossary-insurance-terms) — definitions of named insured and insured