Direct compensation covers damages as a result of an accident where an identified insured third-party is at-fault.

What does third party insurance cover car. Third-party car insurance is designed to protect you from legal action in the event that you cause an accident. In particular it will help cover any costs youre required to pay for vehicle damages or injuries sustained by other drivers or their passengers. In that case your insurer will bear the expenses andor liabilities arising from such an eventuality.

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. See how our customers save big on auto insurance. That means the CTP insurance you select when you register your car would pay for another partys personal injuries if you caused an accident.

What is Third-Party Car Insurance. The policy does not provide any benefit to the insured. It includes newly bought cars temporary substitute vehicles cars you are using but dont own etc.

However damage to your vehicle will not be covered and you will need to pay the bill yourself to get things fixed. How Much Third-party Liability Do I Need. 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.

The compulsory amount is set at the provincial level - most provinces require. Third-party insurance is a car insurance coverage which insures you against all the 3rd party legal liabilities which may arise due to any mishap such as a road accident involving your car. Third-party liability does NOT cover the cost of injuries to yourself or damage to your vehicle for an at-fault accident.

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. Now to define third-party car insurance refers to a particular type of vehicle insurance which safeguards you against legal liabilities when you meet an accident with any third-party. Because third-party car insurance is the minimum legal level of cover it shouldnt be surprising that it covers only the minimum costs in case of an accident.