What does third party car insurance cover?

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In a nutshell...
  • A third party insurance policy can help you become compliant with your state’s auto insurance laws and regulations
  • A third party insurance policy pays the damages and medical expenses of the other driver
  • You can use a comparison tool to locate a new third party insurance policy

If you’ve spent any time researching car insurance policies, you may be wondering about third party car insurance.

This type of automobile insurance protects the policyholder against claims from the other driver and potentially being sued for causing an accident.

If you need third party auto insurance, you can use a comparison tool to help you find the right type of auto insurance. Enter your zip code above to compare car insurance quotes for free.

Third Party Insurance Explained

When an agent, insurance company or layperson says they have a third party insurance policy, they are referring to liability insurance and bodily injury auto insurance.

These types of insurance are offered in normal auto insurance policies, and these coverages are required by almost every state.

When we talk about a party in reference to car insurance, we are talking about an individual, group or company, and when it comes to insurance claims, there are typically three parties involved.

  • First Party – The first party is the individual that purchases the insurance plan.
  • Second Party – The second party is the automobile insurer that provides the policy.
  • Third Party – The third party is the individual that makes a damage or injury claim against the first party, also known as the insured.

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Types of Third-Party Insurance Policies

There are two types of third party auto insurance policies. The first type is property damage liability. The second type is bodily injury liability.

It is important to note that third party insurance does not cover damage to the policy holder’s vehicle or property.

The policyholder must pay for those damages from his or her own finances.

  • Third Party Liability Insurance – This policy pays for damages, up to the replacement, of the other driver’s vehicle after a car accident.
  • Third Party Bodily Injury Insurance – This policy pays for the medical care of any injured persons in the other vehicle after the accident.

Third Party Insurance Claims

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When you get into an accident with another driver, you have to file a claim if you wish to receive compensation for the damage to your vehicle and any injuries that you sustained.

While you do have to call your insurance company to alert them of the accident, you do not have to file a claim at the same time. If you believe the other driver was at-fault for the accident, you can call his or her insurance company and file a claim.

When you file a claim with an insurance company with whom you do not do business, it is considered a third party claim. Thankfully, the steps involved in filing a third party claim are very similar to filing with your own insurance company.

  • Call the Insurance Company – The other driver should have given you his or her insurance and contact information. If they did not, you will need to get a copy of the police report before you can call the insurance company.
  • Explain What Happened – When you call the other driver’s insurance company be prepared to explain who you are and what happened at the accident scene. Also, tell them how you believe the accident occurred.
  • Provide Evidence – The other driver’s insurance company will want any evidence you have that proves what happened during the accident. This evidence includes the police report, any photos you took of the damage to your vehicle and the accident scene and any witness statements.
  • Explain the Costs Involved – In addition to providing evidence to support your claim, you will want to provide any repair estimates and medical bills as well as lost wages pertaining to the accident.
  • Wait for a Determination – Once the insurance company has all of the information, they will investigate the accident to determine who was at fault. If they rule in your favor, your claim will be accepted. If they do not rule in your favor, you will have to appeal the denial.

If you need a third party car insurance policy, you can use the services of an auto insurance comparison tool to help you.

These tools make searching for a new insurance policy extremely quick.

After you input all of your information, the tool will return all the results that match your criteria. From there, all you have to choose is choose a policy and purchase it. Enter your zip code into our free comparison tool below to get started.

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