Thats because one accident could easily exceed 200000 and you wouldnt want to be held financially responsible for the rest.

How long does third party car insurance work. Third-party auto insurance claims. Car insurance is a crucial document for all four wheeler owners in India. How third party works.

Moreover driving ones own vehicle provides a sense of independence and self-confidence. An example of this is the Compulsory Third Party Division CTD of Western Australia which insures drivers and the government against injuries arising from accidents on the road. 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 can be used to pay for the costs incurred by a lawsuit that may otherwise result in financial destitution or bankruptcy. Additionally having a third party car insurance cover for the persons involved in an accident financially protects individuals from any liability costs that might come up. You back into your neighbours fence.

Younger or newer drivers may opt for this car insurance in an attempt to reduce the cost and avoid any add-ons however they may do better to get a quote for Black Box Insurance. Your car damages another persons property eg you drive. If you cause injury death or property damage third party liability car insurance is applicable and will cover these claims up to your policy limit.

In a car insurance policy third-party liability coverage is designed to protect you when youre held legally liable or responsible for injuries or damage to someone elses property in a collision. However every insurance company will recommend buying additional coverage. What is Third-Party Car Insurance.

How Does Third Party Liability Coverage Work. If your car is worth very little then third party car insurance may be a suitable option as the cost to fix the car after an accident may be the same as buying a new vehicle altogether. How Does it Work.