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.

What does third party insurance cover theory. 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. The definition of third party car insurance is the first party the individual who purchases the car insurance purchases the policy from the second party the insurance company. This insurance policy covers the third party a person who may claim against you due to an accident that was your fault.

Flood damage to your vehicle. 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 insurance covers injury to another person damage to someone elses property and damage to someone elses vehicle.

Third-party insurance provides coverage when you are responsible or at fault resulting in property damage or personal injury. Third party liability coverage is a part of the insurance policy that addresses issues when you as a driver either damage somebodys property or cause somebodys injuries or death and have to deal with legal responsibility. Since the third-party insurance cover is.

This includes death and coverage will. 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. Repair costs to any property youve damaged.

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. This is the minimum level of insurance you need to drive on public roads. Your third-party liability covers the following.

A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or property will. However it covers the insureds legal liability for deathdisability of third-party loss or damage to the third-party property. Third-party insurance cover is usually cheaper than comprehensive cover.