Third party car insurance can be defined as liability insurance that is designed to provide protection to other motorists and property owners for the damage you cause.

What is third party car insurance definition. Third-party only insurance TPO offers you the legal minimum level of car insurance cover and is the most basic youre able to get. Unfortunately accidents often result in legal proceedings and lawsuits. A third-party car insurance plan provides coverage against any legal liability arising out of injuries to a third-party when the policyholder is at fault.

Third party car insurance is the minimum level of cover you can take out - it is a legal requirement. When you take out an insurance policy youre forming a legal relationship with your insurance provider. Third party insurance is the minimum level of cover required to drive in Ireland and means that in the result of an incident any damage to a third party is covered but damage to your own car is not.

Third party liability coverage is mandatory in Canada and its minimum is 200000. Third Party Car Insurance covers damage to other peoples vehicle or property. This kind of policy helps protect other people vehicles and property in the event of an accident that was deemed to be your fault.

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 insurance meaning. Why Have Car Insurance.

Most insurance contracts only involved the insured the first party the insurance company and the second party. Comprehensive Car Insurance covers all your bases including damages to your own vehicle or property plus you can access the AAMI Safe Driver Rewards program. In this relationship youre the first party and the insurer is the second party.

One reason to have car insurance is that in most states its required by law. In order to drive in Ireland you are legally required to have third party insurance in place at a minimum. 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.