It is customary to speak in the first person when referring to oneself. In a similar vein, the first party in a car insurance claim is the individual or organization purchasing coverage.
The second party is the insurance company you buy from. In this scenario, the third party is you, and if you are at fault for an accident, you run the risk of injuring them or causing damage to their property.
Let’s say, for instance, that you are found to be at fault in a car accident. The other driver’s car’s bumper has been damaged, but no one has been hurt.
You are fortunate to have third-party auto insurance coverage, so the policy’s property damage liability coverage will cover the damage to the third party’s vehicle.
Liability coverage for damaged property:
Damage to another person’s property caused by you or someone else driving your vehicle with your permission is covered by this type of insurance.
Property can refer to any structure that the at-fault driver’s vehicle hits, from lamp posts to buildings, but the earlier example of the fender bender and the resulting bumper damage is an example of a situation in which this kind of coverage kicks in.
