Home Insurance Vehicle Insurance What is Third Party Insurance Coverage in Car Insurance?

What is Third Party Insurance Coverage in Car Insurance?

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Third Party Insurance

An auto insurance or vehicle insurance is vital if you own a car, it is mandatory to ensure the safety of your own car and the passengers in it. But during any unlikely situation, if your car causes any damage or loss to another person or property then you will have to be liable for the same. That is when a third party insurance coverage is required for your car, so as to insure others also.

Third Party Insurance

In any circumstance, your vehicle collides with another causing injury to the passengers in it or any other damage to property, then third party car insurance will provide the necessary cover. This include :

  • The person involved in the accident
  • The third party can be a pedestrian or the passenger in the other car (other than the car owner and the insurance company)
  • Fair paying passengers in public transports.
  • Non-fair paying passengers in vehicles without paying a fair.

They will get the necessary compensation for an accident which is duly caused by the insured.

This insurance does not provide the insured any coverage but protects him/her against any legal liability/death/damage/loss caused to the third party or third party property.

Advantages of third party car insurance

  • Third party insurance is the cheapest car insurance if you are looking for a budgeted cover for your car.
  • If your car is not worth a lot of money then getting a third party car insurance will be more useful.
  • For young and new drivers, third party insurance is a good option as it is relatively cheap and affordable.
  • Third party insurance is mandatory and all insurance companies are obliged to provide this cover to the insured.
  • Monthly premium is very less and is affordable.

Disadvantages of third party car insurance

  • Keep in mind that the third party car insurance will not provide you the complete protection that a comprehensive car insurance promises
  • A fully comprehensive car insurance provides more protection than third party car insurance.
  • The insured and his/her vehicle will not be covered, if you suffer any injury or damage during the accident that was completely your fault.
  • Third party car insurance also does not provide any compensation, if the vehicle is stolen, set on fire or destroyed in the street.

There is also another category under car insurance called Third Party Fire and Theft insurance (TPFT insurance), where your car will be covered if there is a fire or if it goes stolen, damage to car lock or even a stolen car stereo. Now, having seen the merits and demerits of third party car insurance, you may decide which type of insurance works best for your car.

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3 COMMENTS

  1. this seems plausible for old or second hand inexpensive cars. It doesnt make sense to really insure something whose value is far less. However, legal coverage is essential as it makes stuff easier in case of mishaps. This product is really attractive. As long as the human life goes, there are many insurance options available like accident insurance specifically meant for covering deceased in accidents. Therefore, there need not be too much worry over it

  2. This insurance doesn’t pay for the medical or damage caused by your car when you get in an accident, it only makes sure you aren’t liable for that medical cost or damage cost. It makes sense to get this, and in some parts of the world, it is a compulsory part of owning a car, whether it is second hand or brand new.

  3. Third party insurance is a good choice for young and the new drivers, as it covers the various legal aspects and for old and used cars. But then it does not cover the insurer and the car. Plus it does not provide a full protection of the car as the comprehensive insurance. But then the monthly premium is also very less.

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