By third party is meant a special kind of a coverage given to car insurance policyholders which protects the vehicle against theft and fire. As per law a vehicle owner must have a third party coverage for the vehicle. If on road an accident happens then the owner is supposed to pay as per law for the damage, wound, treatment and legal costs associated. A third party coverage here is one which helps you settle other people’s claims.
A person having such insurance gets entire protection when there is a fire or theft. There is generally a complete loss when a car catches fire. In such cases the insurance company will pay you an equivalent value of the car. One can save on the amount of premium if safety measures are added to the vehicle from beforehand.
Various facts of Third party liability car insurance:
- The third party liability car insurance is a type of car insurance policy. This type of insurance coverage deals with the damages caused by you to the people riding the other vehicle. The third party insurance covers both injuries incurred and damages in the property of the other party caused by your vehicle. Based on the amount stated by the third party liability coverage, the equivalent sum will be reimbursed by the insurance company. A deficit in amount must be paid by the car owner.
- In many states the law states that, before a vehicle is registered or a driver obtains his license he is supposed to have the third party liability automobile insurance. This is the minimum legal requirement and hence the cheapest of all. All the companies offering insurances will offer this coverage. In many states the companies also offer great discounts to car owners and help them financially to get them covered under third party liability coverage.
- One can add additional coverage like road rage or breakdown coverage. Generally such coverage is added to old cars. A road rage coverage helps one cover injuries and other accidents.
- Although this is the cheapest of all policies the cost can still be lowered further. This can be done by enhancing the amount deductible at the owner’s end. When the amount of premium to be paid is lowered it means the financial reimbursements on account of repair or hospitalization will also increase. Although in such case one saves money in the premium but the overall financial expense can be disastrously high in case of an unfortunate event. It is hence a risky auto insurance choice.
- If you are the one due to whom the accident has caused, then the third party insurance will assist you. You can pay off the damage caused to the other party. Everything related to the accident can be paid off using this third party liability coverage. In today’s date the cost for repairing vehicles and medical costs are really high. In such cases the car owner is saved as the compensation made quickly can save a lawsuit charge.