Car insurance is mandatory not only in the United States but in many countries around the globe. We all know about the kind of insurance that we can have in the event of a fender bender or an outright accident that protects the driver and passengers. But, what happens when there is an accident on which your car is involved but you were not the driver. Many of us will lend out cars to friends or relatives without thought to accident or injury to the driver or the car. In that case there is third party insurance.
Third party car insurance covers you in the event of damage caused by your car, in the event of an accident, to property owned by a third party. This would be considered coverage for damage done accidentally to someone’s property and the coverage can go to Twenty Million dollars.
Your car may not be worth insuring the think of the other person’s property. If you have experience car repairs you know that a scratch or a bump can sometimes cost thousands of dollars for repairs. If you car may not be worth insuring what about your peace of mind that has some worth.
There are advantages to having third party car insurance as some companies will cover you if your car is damaged by a driver that is uninsured. In addition, most of the third party car insurance companies understand the importance of you car to your daily needs and resolve the claims as quickly as they possibly can. There are many options as every third party car insurance company has different coverage options.
It is mandatory in the United States that you have liability insurance to cover injury and damage to property. However, each State has its own requirements regarding insurance. Although penalties for not having auto insurance vary by State there a usually substantial fines, license suspension and sometimes jail time. The minimum insurance that is usually required by law is third party car insurance in order to protect third parties to cover financial loss in the event of damage or injury to property or person that may be caused by your vehicle.