Q:

What does third-party car insurance cover?

A:

Quick Answer

According to CarsDirect, third-party insurance covers injuries sustained by other passengers and drivers and damage done to other vehicles involved in the accident as long as the insured individual is at fault. Currently, every state requires drivers to have either liability or third-party insurance.

Know More
What does third-party car insurance cover?
Credit: Blade_kostas E+ Getty Images

Full Answer

One of the reasons drivers need to have adequate third-party insurance on their auto policy is so they do not have to risk being taken to court by victims seeking compensation for damages, notes CarsDirect. While each state has its own requirements, drivers may want to purchase more than the required amount to protect their assets and make sure their policy fully covers all damages incurred from an auto accident.

Learn more in Vehicle Insurance
Sources:

Related Questions

  • Q:

    What does liability insurance cover?

    A:

    Liability insurance covers injuries, accidents and negligence for which a person or business is held responsible, according to Investopedia. A liability insurance policy pays for the medical expenses and compensation to the individual involved and other costs associated with a lawsuit, such as lawyer fees and court costs. A liability insurance policy saves a person or business from losing large sums of money due to a lawsuit.

    Full Answer >
    Filed Under:
  • Q:

    What does GAP auto insurance cover?

    A:

    Gap auto insurance primarily covers the difference between the value of a vehicle and what is owed on a loan when a car is totaled. For example, if someone owes $10,000 and the total loss insurance benefit is $8,500, gap insurance covers the remaining $1,500 of the loan balance.

    Full Answer >
    Filed Under:
  • Q:

    Does auto insurance cover hitting a deer?

    A:

    DMV.org states that drivers can receive coverage from hitting a deer by purchasing comprehensive car insurance. Comprehension insurance covers damages occurring from acts of nature including wildlife. Liability insurance does not cover damages sustained from a collision with a deer.

    Full Answer >
    Filed Under:
  • Q:

    Do you need car insurance in Australia?

    A:

    There is a compulsory requirement for car insurance in Australia. Various levels of car insurance coverage are available in the country, but drivers need at least compulsory third-party insurance, which is the lowest acceptable level.

    Full Answer >
    Filed Under:

Explore