Unfortunately accidents often result in legal proceedings and lawsuits.

What is third party car insurance mean. It offers protection for drivers if theyre at fault in an accident and the other party is hurt or even killed. This policy safeguards the interests of those who might be injured or whose property might be damaged because of an accident involving the insured vehicle. It covers damages and injuries caused by the insured vehicle to a third-party person or property.

Basically third-party insurance is liability coverage thats purchased by a consumer first party from an insurance company second party to protect against claims from other people third party for injuries or damage the first party causes. Third-party liability insurance is mandatory coverage for all drivers in Canada. Third party car insurance is the minimum level of cover you can take out - it is a legal requirement.

A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or. According to the IBC in 2019 third-party liability claims payouts accounted for 466 of all direct claims incurred. Third party liability coverage is a part of the insurance policy that addresses issues when you as a driver either damage somebodys property or cause somebodys injuries or death and have to deal with legal responsibility.

Under FSCO rules all Ontario drivers must carry at least 200000 in third party liability coverage. Third party liability coverage is mandatory in Canada and its minimum is 200000. It is referred to as a third-party cover since the beneficiary of the policy is someone other than the two parties involved in the contract the car owner and the insurance company.

This insurance pays for the injuries of the occupants of the other vehicle the cost of repairing it as well as damages caused when you are determined to be the at-fault driver. As mentioned earlier third party car insurance is meant to take care of your legal liabilities in case your car causes damage to the third party. A third-party car insurance plan provides coverage against any legal liability arising out of injuries to a third-party when the policyholder is at fault.

Third-party liability insurance TPL is an important form of protection found in your automobile policy. Third party car insurance can be defined as liability insurance that is designed to provide protection to other motorists and property owners for the damage you cause. Third Party Liability Coverage - This type of insurance covers you if you cause an accident that hurts or kills another person or causes property damage to their car.