It is mandated in some form in almost every state of the US.

How does 3rd party car insurance work. It provides coverage for bodily injurydeath of a third party as decided by a court of law as well as third party property damage up to Rs. Third-party insurance covers an individual or firm against a loss caused by some third-party. Automobile insurance is broken down into multiple types each with a different deductible.

Pay Full Amount. So this is usually the other driver involved in an accident. Third-party motor insurance policies have specific features which safeguard individuals from liability costs in case they are involved in an accident.

The term third party refers to a person involved with a car insurance claim who is not you the holder of the policy or the driver. Third-party liability insurance protects you when youre at fault in a motor vehicle accident. You pay the full amount when you are 100 responsible.

This includes death and coverage will be assessed and applied. If you hit someone elses car and severe damage is caused to them then your insurer bears the expenses as well as liabilities that arise. An example is automobile insurance that will indemnify the insured if another driver causes damage to the insureds car.

Third-party auto insurance is the most basic form of car insurance also known as third-party liability insurance. What Is Third-party Liability Car Insurance. Third-party means it didnt happen to you but to someone else.

In vehicle insurance the third party is most likely to be the driver of the other car in an accident that you caused but it may be a retailer for example if you drove your car through a shop window. Third-party insurance pays the charges when someone makes a claim against you or your car insurance company. Third-party liability coverage is the portion of an insurance policy that protects you if youre sued or threatened to be sued for a physical injury or damage to someone elses property.