third party liabilities insurance

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What is third-party liability insurance?

Third-party offers coverage against claims of damages and losses incurred by a driver who is not the insured, the principal, and is therefore not covered under the insurance policy. The driver who caused the damages is the third party . For auto insurance, there are two types of third-party liability coverage:

Does third-party insurance cover bodily injury or property damage?

For one, third-party insurance does not cover bodily injury or property damage that you, as the first party, suffer. Third-party insurance also doesn’t cover every type of claim that a third party may bring against you or your business. For example,

What is a third party insurance policy?

The first party is the insured, the second party is the insurer, and the third party is the person causing the loss or claim. The two main categories of third-party insurance are liability coverage and property damage coverage. Most people are required by law to carry different forms of insurance on their homes and vehicles.

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