What is third-party liability insurance?

Third-party offers coverage against claims of damages and losses incurred by a driver who is not the insured, the principal, and is therefore not covered under the insurance policy. The driver who caused the damages is the third party. For auto insurance, there are two types of third-party liability coverage:

What does third party insurance cover in a car accident?

If you're hurt in a car accident by another driver, their third-party insurance pays for the costs of your injuries and property damage. The cost of third-party insurance depends on the amount of coverage you buy, but it's often relatively inexpensive to add more liability protection to a car insurance policy. What is third party insurance?

What is a third party insurance policy?

The first party is the insured, the second party is the insurer, and the third party is the person causing the loss or claim. The two main categories of third-party insurance are liability coverage and property damage coverage. Most people are required by law to carry different forms of insurance on their homes and vehicles.