Third-party liability insurance is mandatory coverage for all drivers in Canada.

What does third party vehicle insurance cover. Third-party car insurance is designed to protect you from legal action in the event that you cause an accident. 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. Third-party insurance pays the charges when someone makes a claim against you or your car insurance company.

Third party insurance protects customers against financial ruin from potential claims for injuries or damages they may cause to another person. That means the CTP insurance you select when you register your car would pay for another. Suppose you hit someones car and caused them severe damages.

In simple words it is an insurance policy that protects you from legal liabilities which may arise in case of an accident. It provides compensation for people injured or killed in a car accident that is deemed to be not their fault. So this is usually the other driver involved in an accident.

What is Third-Party Car Insurance. CTP is an abbreviation for compulsory third-party insurance. This includes both their own passengers people in another car and pedestrians.

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. Third-party means it didnt happen to you but to someone else. And uninsured automobile coverage provides up to 200000 for damages if.

For that youd need a comprehensive insurance policy. In particular it will help cover any costs youre required to pay for vehicle damages or injuries sustained by other drivers or their passengers. Your third-party insurance policy covers you for the other partys material damage but it extends to personal liability cover for an event outside South Africa.