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.

What does third party insurance mean. The third party is another individual. Third party insurance is an insurance policy that covers property damage caused by someone who isnt the insured. Definition of Third Party Insurance.

It does not pay you any money for damage you suffer as a result of your own actions. Third party insurance is an insurance policy that covers property damage caused by someone who isnt the insured. 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.

So this is usually the other driver involved in an accident. Unfortunately accidents often result in legal proceedings and lawsuits. 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.

This kind of policy helps protect other people vehicles and property in the event of an accident that was deemed to be your fault. Third party insurance meaning. Besides third party insurance car insurance also provides comprehensive insurance to your car.

Click to see full answer. A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or property will. You might not think of yourself as the adventurous type but the fact is that we all take risks every day no matter whether were just making toast driving to work or getting out of bed in the morning.

Third-party liability insurance TPL is an important form of protection found in your automobile policy. What is Third Party Insurance. Third-party insurance is the most versatile and comprehensive option for health insurance.