Unfortunately accidents often result in legal proceedings and lawsuits.

What is 3rd party auto insurance. Your liability coverage will pay for accident benefits medical costs lawsuits and damages awarded to the injured party but it will only pay up to the amount of coverage you have chosen. What is third-party auto insurance. 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 includes death and coverage will. Third-party auto insurance is the most basic form of car insurance also known as third-party liability insurance. January 8 2020 Categories.

According to the IBC in 2019 third-party liability claims payouts accounted for 466 of all direct claims incurred. This policy safeguards the interests of those who might be injured or whose property might be damaged because of an accident involving the insured vehicle. Written by Stephanie Fereiro Published on.

Third-party auto insurance is a type of insurance that protects you the insured driver against damages you cause to other people and property. Third-party insurance protects individuals against the claims of another. So this is usually the other driver involved in an accident.

Third-party liability insurance TPL is an important form of protection found in your automobile policy. Insurance Car insurance Home insurance. See how our customers save big on auto insurance.

For example if you accidentally rear-ended another car injuring the driver and damaging their vehicle the other driver could file a claim against you. 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. A 3rd party car insurance policy is a legal requirement for driving a car in India on public roads.