It covers damages and injuries caused by the insured vehicle to a third-party person or property.

What is third party insurance means. In this case the insurer may be regarded as the second party. Third party insurance is an insurance policy that covers property damage caused by someone who isnt the insured. The insured person is termed as first party the insurer or the insurance provider is termed as second party and the person who is.

The third party is another individual. So this includes situations such as if you bump into a car or damage ones personal property. Third party car insurance is the minimum level of cover you can take out - it is a legal requirement.

Unfortunately accidents often result in legal proceedings and lawsuits. Even if you do everything you can to prevent damage or injury they still happen.

Related words and phrases. Therefore a third-party insurance claim is made by someone who is not the policyholder or the insurance company. A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or.

In this relationship youre the first party and the insurer is the second party. Basically third-party insurance is liability coverage thats purchased by a consumer first party from an insurance company second party to protect against claims from other people third party for injuries or damage the first party causes. 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 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. Third party insurance meaning. The first party is the insured individual.