What does third-party car insurance cover?
Credit:Blade_kostasE+Getty Images
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

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 about Vehicle Insurance

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 is Drivers Alert Network insurance?

    A:

    Divers Alert Network insurance covers accident, travel, trip and equipment insurance through DAN Services, Inc., the for-profit arm of the non-profit Divers Alert Network. Three types of accident insurance plans cover a diver who gets into an accident while scuba diving. Trip insurance covers travel and assistance plans for expensive dive vacations. Travel insurance covers multiple, annual trips instead of just one dive vacation.

    Full Answer >
    Filed Under:
  • Q:

    What is the difference between collision and comprehensive insurance coverage?

    A:

    Motor vehicle collision insurance covers the cost of repairing damages resulting from an accident, and comprehensive insurance provides coverage when the source of the damage is unknown or not preventable. The amount of costs covered depends on policy deductibles. Collision and comprehensive insurance coverage is usually not required by law.

    Full Answer >
    Filed Under:
  • Q:

    How long do I have to file a car accident claim?

    A:

    The time frame in which a car accident claim must be filed is established by the terms and conditions of one's insurance policy. The failure to submit a claim by the deadline set forth in an insurance policy gives a car insurance company the legal ability to reject a claim for damages and injuries outright.

    Full Answer >
    Filed Under:

Explore