A prevalent type of insurance in automobile policies, third party liability insurance is bought for protection if someone sues you for any physical damage. It is a part of your policy that pays for the money you need to settle legal issues. It is essential for those who drive a lot and are at risk of getting involved in an accident. In case you are not aware of it, here is all that you need to know about third party liability insurance for automobiles;
What Is Third-Party Liability Insurance?
Imagine you were parking your car, but you hit your neighbor’s fence or maybe their car by chance. In a situation like that where you caused damage to someone else’s property and might have to go through legal procedures. These lawsuits and fines can cost you dollars. In a situation like that, third party liability insurance comes to the rescue. The more you drive, no matter how good you are, there are always chances of accidents. So, this is why you need to have a policy to protect you financially. Lawsuits can cost you a lot, so third-party liability insurance makes sure you do not pay all the amount from your pocket.
Third-party liability insurance is not just for car owners but also for the renter’s insurance as well.
What to Keep in Mind?
An essential thing to note is that people often think that having third-party liability insurance in home insurance will cover you if you are involved in any damage to someone’s property because of your car. It is not valid. You need to have separate liability coverage in your automobile insurance for such purposes. If you get injured in an accident or your car gets damaged, you do not get coverage under third-party liability insurance. For that purpose, you should have collision or comprehensive coverage.
How Much Coverage Do You Need?
When deciding the amount of coverage, keep in mind that you will have to pay from your pocket if the expenses exceed your policy limit. So, determine the amount accordingly. Usually, certain states have made it compulsory for you to have third-party liability insurance of a certain amount. Typically the more coverage you have, the higher is the amount for third-party liability insurance. Just keep in mind that lawsuits can be costly to deal with. So the coverage amount should be likewise.
What Are the Types of Coverage Under the Policy?
In any type of claim, the coverage will be given according to the limit you have set. There are usually three types of coverages; property damage, bodily damage per person, and physical damage per accident. A property damage limit is an amount that your insurer will be paying if the loss to someone else’s property is under that limit. Bodily damage per person and accident set an amount to give the medical expenses coverage for all the people injured in the accident as long as the costs are under the limit.
The more you drive, the higher you are at the risk of getting involved in an accident. If you cause damage to someone else’s vehicle, property, or injury to their body, then you need to pay for those expenses. So having third-party liability insurance helps you get coverage for these purposes. You can set the limit for your coverage as per your wish. Keep in mind that if the expenses of the coverage exceed this limit, you will have to pay from your pocket only. So, what are you waiting for? Go and get one for your car!