Third-party car insurance covers are slightly different from your regular car insurance covers. When it’s time to choosing your car insurance cover, several vital factors go into the play.
As a car owner, you must first review all your options before taking up insurance since third-party car insurance is taking rounds with more and more people asking questions regarding it.
We have decided to help you get all the information regarding third-party insurance.
In this post, we will discuss everything you need to know about third-party car insurance. It will help make an informed decision when buying car insurance.
What is third-party car insurance?
Third-party car insurance is a type of car insurance cover that protects the car owner against any liability to the third party caused when the car owner is at fault.
Third-party car insurance covers injury or damage caused by the insured to property or another person. There is no particular limit on the liability coverage for damage of property, injuries, or even death of the third party.
What is covered then?
Third-party car insurance covers you against:
- Permanent total disabilities of a third party individual due to an accident caused by your car
- Third-party property damage caused by your car
- The accidental death of a third party caused by your car
- Bodily injury to a third party
Benefits of having third-party car insurance
Having third party car insurance allows you to protect yourself in case of any injury or death is caused to a third party or damage is done to any property caused by your vehicle.
Under the law, the third party car insurance claim can be made under no-fault liability claims where you are under no obligation to charge and prove negligence on the part of your vehicle that caused the damage or accident.
What are the exclusions in third party car insurance?
In the case of an accident, having third party car insurance will not cover the damage caused to your vehicle during the accident.
On the other hand, third party car insurance will not provide you cover in case if your belongings or the car itself are destroyed or stolen.
If you are insured, then you need to stick on to the terms of service of the third party insurance company while filing a claim. You will not be covered for making claims that don’t fall under the insurance company’s terms of service.
Moreover, compensation for the damage caused can only be claimed once. However, it will depend on the insurance service provider and what their terms of service say.
Is it right for you?
Third-party car insurance recommended for those vehicles that old and not in their prime condition. If you have an old car, then you can take third party car insurance, but if you own a brand new one, go with comprehensive car insurance.
However, talk with your insurance service provider before taking one. They can give you some recommendations.