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.

What does third party insurance cover you for. If you have a crash and your vehicle is damaged you might have to carry out the repairs at your own expense. As third party insurance only covers damage to a third party but not your own vehicle it tends to be the most affordable option when it comes to insurance. CTP is an abbreviation for compulsory third-party insurance.

Third party insurance protects customers against financial ruin from potential claims for injuries or damages they may cause to another person. 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. Third party car insurance is the minimum level of cover you can take out - it is a legal requirement.

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. Your third-party liability covers the following. The insured person is termed as first party the insurer or the insurance provider is termed as second party and the person who is.

We already mentioned that third-party liability insurance coverage provides you with the finances needed to pay other parties that sue you for causing an accident. Since the third-party insurance cover. 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.

Medical costs for anyone youve injured. See how our customers save big on auto insurance. What Is Covered By Third-party Liability Insurance.

Third-party insurance provides coverage when you are responsible or at fault resulting in property damage or personal injury. Maybe you would like to learn more about one of these. Repair costs to any property youve damaged.