Third-party insurance covers are majorly concerned with the welfare of people affected by accident apart from the car and its owner. Though not as comprehensive as other car policies, understanding what it covers as illustrated below will help in decision making.
There are different types of third party insurance, including the third party property car insurance which deals explicitly with damaged property and not pedestrians’ or passengers’ injuries. Whichever the third-party category insurance may be, it strictly caters for people or property affected by a car accident aside from the car and its owner.
Many people confuse this type of insurance with compulsory third party insurance nsw and other areas in Australia. In some ways, they are similar apart from a few specifications. Some of the areas it covers include theft, fires, third-party injuries from accidents and property damages. It is one of the most affordable car policies, therefore, making it one of the most used plans.
Some insurers recommend that this policy is taken by people who are not always around their vehicles, mostly people using them to help a family member move about or similar cases. Also, if your car is very old, this might also be the best option since it is likely that an accident might destroy the vehicle entirely. A minimum liability cover will not you cost you too much, unnecessarily.
In some cases, insurance companies offer a package inclusive of third-party cover and a personal cover. It is also viable and caters for all parties in the event of an accident. However, these covers only cover accidents and not damages purposefully incurred. They also cannot be taken for commercial vehicles or a private vehicle being used for commercial purposes. Illegal and misconducts also do not apply for such policies.
Once an accident occurs, the owner of the vehicle should ensure that a claim is filed with their insurer as soon as possible to process any compensations required.