First, let’s learn about third-party car insurance before you explore its coverage.
What is third-party car insurance?
This insurance is a fundamental component of car insurance coverage. An insurance policy provides financial protection to the policyholder against claims made by third parties in the situation of an accident or damage caused by the insured vehicle. Unlike comprehensive car insurance, which covers a wide range of risks, this car insurance is more limited in scope. It covers the policyholder’s liability for injuries or property damage inflicted upon others. However, it’s essential to understand what third-party car insurance covers.
Third-Party Insurance Coverage
Most people don’t know about the coverage of their car insurance. If you are also wondering does third-party insurance covers car damage, you can take a look at the list of coverage below:
Liability Coverage
Third-party car insurance primarily offers liability coverage. It includes Bodily Injury Liability (BIL) and Property Damage Liability (PDL). BIL covers medical expenses, rehabilitation and legal fees if you injure someone in an accident. In comparison, PDL covers repairing or replacing third-party property (e.g., another person’s car, a fence or a building) damaged in an accident.
Legal Protection
Third-party car insurance provides legal protection by covering the cost of legal defence if you get sued due to an accident.
Coverage for Other Drivers
This type of insurance extends to other drivers listed on your policy, such as family members, if they are driving your insured vehicle with your permission.