The Concept of Third Party Car Insurance

Reader’s question:
What is the relevance of third party car insurance? What does it contemplate?
Jack

Thanks for asking.
It is a government regulation as stated in the Road Traffic Act, that all road users are protected by a certain minimum area of insurance. If an accident arises involving you or another individual if they were driving your car or the registered owner of the car, third party auto insurance will provide you cover for any claim that may be filed against your policy. Third party car insurance or a higher level of insurance really provide more protection than the regulation needed and this can be as elementary as third party only, third party, theft and fire or comprehensive.

If an accident happens and you are negligent and have to acknowledge the blame then your insurance policy will pay out any form of money that are granted to the individuals who are deemed to be ‘third party’ that may have died or been hurt or their vehicle has been damaged. Furthermore included in this would be the injured party’s situation and your own legal costs.

But there can be some problem and the matter does become more complex if you happen to be a passenger in your own vehicle being driven by someone else. If the individual driving your vehicle has your consent to do so, then they are covered by your policy instead of you. Those who are insured to do the driving on your insurance will be listed, for instance, passengers, guests, employees, named drivers. If you were to figure in an accident because the individual you have permitted to drive your vehicle has driven so horribly and led an accident then you are well within the regulation to be able to submit a claim for indemnity from this driver. Your third party insurance would, in this situation, pay out the driver of your car and not you, however, you would be able to submit a claim and more than likely be approved, in getting some damages on your third party protection against the driver of your vehicle. Always note though that this does work in several ways if in the situation above the driver who was injured, or worse, died then your insurance firm would not be liable.

Regrettably though, it is not important who was really driving because under this statement of the policy, you cannot be indemnified for any damage caused to the vehicle.

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