Also known as Liability-Only policy or Act-Only policy this type of four wheeler insurance provides coverage benefit only to third parties.

What is third party car insurance meaning. As mentioned earlier third party car insurance is meant to take care of your legal liabilities in case your car causes damage to the third party. Why Have Car Insurance. 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.

It covers damages and injuries caused by the insured vehicle to a third-party person or property. Third-party liability insurance is mandatory coverage for all drivers in Canada. One reason to have car insurance is that in most states its required by law.

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. The third party is someone who files for liability claims against you the insured. What is Third Party Liability Coverage.

You are not allowed to operate a vehicle without this insurance. Unfortunately accidents often result in legal proceedings and lawsuits. 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.

Even if you do everything you can to prevent damage or injury they still happen. 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. 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.

The term third-party car insurance refers to the coverage that kicks in if you cause damage to another person their vehicle or other property not owned by you. Third party car insurance covers damage to others as a result of an accident thats your fault. 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.