If you are in a car accident that is your fault then you will need to pay to have the other car repaired plus your own. Comprehensive car insurance will cover both of these, but it is also the most expensive of car insurances. Therefore at the very least, you should consider third-party car insurance. Without third-party car insurance, you could have to repair or even replace the other car out of your pocket.
What is Third-Party Insurance?
With third-party car insurance, you are protected against financial liability if you are at fault for an accident.
The third party could be a person, the other car, a business or even a property depending on what has been damaged in the accident. The insurance will cover the damage caused to this third party, so that you don’t have to pay out of your pocket for it. You will, however, need to pay for any damages to yourself and your car.
The Limits of Third-Party Insurance
There are limits to third party insurance. Whilst it will cover you against third-party claims if you are responsible for the damage, it most likely won’t cover you against loss or damage to your car.
Some third-party cover will offer you protection if an accident occurs when someone else is driving your car and some will protect you if you are driving someone else’s car. However, make sure you read the fine print and know exactly what is and isn’t covered.
On a Budget
If you are on a budget, then third-party car insurance is a great option. It is also a good idea to have even if your car is old and you don’t think it is worth insuring.If you cause an accident then the insurance will cover you, otherwise, you will need to pay out of your own pocket.
If you are considering third-party insurance then shop around to get the best deal. Compare car insurance quotes and take the one that suits your budget and your needs.