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Third party vehicle insurance meaning. Unfortunately accidents often result in legal proceedings and lawsuits. 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. 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.

February 15 2018 Updated on. A third party is a person or asset which is not owned by you and damaged due to an accident while you are riding a vehicle. Third-party liability car insurance prevents you from paying for the damage out-of-pocket and is the only type of car insurance thats mandatory across Canada.

So this is usually the other driver involved in an accident. The term third-party car insurance refers to the coverage that kicks in if you cause damage to another person their vehicle or other property not owned by you. So this includes situations such as if you bump into a car or damage ones personal property.

It covers your legal liability for the damage caused by you to a third party like bodily injury death or. Written by Stephanie Fereiro Published on. 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.

Thats why you need to be prepared for the off-chance you cause an accident that results in property damage or injuries. Even if you do everything you can to prevent damage or injury they still happen. This insurance will not cover you or your vehicle.

Third Party Car Insurance Definition. Third party car insurance is a motor insurance contract that ensures protection of the vehicle owner against any unforeseen accidental liabilities arising out of third party vehicle damages property damages bodily injuries disability and death. According to the IBC in 2019 third-party liability claims payouts accounted for 466 of all direct claims incurred.