Third party insurance protects customers against financial ruin from potential claims for injuries or damages they may cause to another person.

What does third party insurance cover mean. Third-party only is the lowest allowable level of car insurance you can get. TPO covers damage to other people and other cars but any damage to your own car is your responsibility to fund and sort. Your third-party liability covers the following.

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. If another person the third party damages the insureds property a regular insurance contract wouldnt cover the claim and would tell the insured to sue the. 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.

Repair costs for vehicles damaged in an accident caused by you. 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. Repair costs to any property youve damaged.

If your vehicle is damaged however you cannot make a claim to get it fixed and will need to pay. However its also important to bear in mind that this policy will not cover any damage caused by fire or theft. Third party liability coverage.

Most insurance contracts only involved the insured the first party the insurance company and the second party. Third Party Fire Theft Car Insurance covers your vehicle for accidental damage caused to a third party and against theft and fire damage caused to your vehicle however any damage caused to your vehicle will not be covered. What Is Covered By Third-party Liability Insurance.

So this is usually the other driver involved in an accident. Third party car insurance is the minimum level of cover you can take out - it is a legal requirement. Under a third-party policy the insurer covers the liabilities in case the policyholder is responsible for any injury or loss to a third party.