How Third-Party Auto Insurance Works Once you know what a third party is, third-party liability insurance is easy to understand.
How Thir
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.
