Motor third-party insurance or third-party liability cover which is sometimes also referred to as the act only cover is a statutory requirement under the Motor Vehicles Act.

What does third party mean in car insurance. This insurance pays for the injuries of the occupants of the other vehicle the cost of repairing it as well as damages caused when you are determined to be the at-fault driver. 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. 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.

This includes both their own passengers people in another car and pedestrians. An example is automobile insurance that will indemnify. Your third-party insurance would cover the cost of the other persons car and medical expenses.

If you are involved in an accident third party car insurance will typically cover you for. You are the first party Third-party liability means that the insurance company will only cover the other person involved in the accident. A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or property will.

Third-party liability insurance TPL is an important form of protection found in your automobile policy. Insurance will pay for their medical bills and damages after a third claim is filed against the at-fault driver. 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.

So this is usually the other driver involved in an accident. Otherwise those costs are on you. 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.

Third-party insurance covers an individual or firm against a loss caused by some third-party. As the name suggests third party insurance will only cover any third parties involved in a car accident which is the fault of the policy holder. Third-party car insurance is the minimum cover you need to drive a car in the UK and there are a couple of types to choose from.