What does Third party Insurance cover?
Third party Insurance for vehicles, covers the driver responsible for a crash, for the cost of damages caused to another party’s property as a result of a crash. Third party Insurance covers damage, especially injuries, that drivers and passengers in other cars may have suffered as a result of an accident caused by you.
In some countries Third party Insurance for vehicles is obligatory to provide cover for the cost of injuries sustained in a crash.
There are two types of Third party Insurance liability cover: bodily injury liability and property damage liability. The first cover people costs such as medical expenses, lost wages or pain and suffering. The second covers the cost of material things such as somebody else’s car, a telephone pole, somebody’s living room window. Both include legal protection up to the limits of your policy if the plaintiff makes a case against you.
Third party insurance liability cover
Another way in which third party insurance will cover the cost of damages, is when a person is injured or his property is damaged by anything that belongs to you, such as your dog biting him or your tree falling onto his vehicle or the roof of his home. It will even cover cost of injuries obtained by slipping on your mat or wet floor.
Then there is a Third-party liability insurance policy purchased for protection against the actions of another (a third) party. It is purchased by the insured (the first party) from an insurance company (the second party) for protection against damage from the actions of another party (a third party). For example, if your car is hit by someone without insurance cover.
Do you need Third Party Insurance?
When it comes to these third party insurance covers, it’s not hard to figure out whether you need them. Do you own a car? If so, you need it. Even if your car is paid off and you don’t consider it valuable enough to have Comprehensive car insurance. You can cause very expensive damages to someone else’s property with that low value car of yours.
Do you own a dog? Do you own property that could hurt someone when it falls? Do you ever receive visitors on your property? If you said yes to any question, third party insurance cover is a no-brainer.
This article originally posted on http://www.dial-direct.co.za/ and reposted here with permission.