Third party car insurance is a type of car insurance that applies to those cars that are not owned by the person and not covered by an automobile liability policy. Third party car insurance can be used for people who have rental cars, their own vehicle but does not have personal liability coverage, or even when the person is borrowing someone else’s vehicle.
What is Third Party Car Insurance?
Third party Car Insurance Thailand is defined as insurance that comes on your behalf if you are using your car as a rental vehicle, borrowing or renting someone else’s car, or even a car you do not own. It helps protect against damage when you use the vehicle for non-business reasons.
How Does Third Party Car Insurance Work?
Without the third party car coverage, you would have to pay for any expenses you incur in an accident that don’t involve yourself. With third party vehicle insurance, you will only be responsible for your own expenses, unless you are covered under another type of insurance, such as a liability policy. If your car is damaged in an accident and you don’t have liability coverage, then the third party car insurance might cover your expenses.
Types of Third Party Car Insurance
There are three main types of third party car insurance. The first is named “conditional third party,” or commonly known as personal injury protection. This one is also known as PIP coverage. Conditional third party insurance covers you in the event you cause an accident, but it only pays for medical expenses and reasonable loss of income.
The second type is also known as personal injury protection. This coverage provides financial compensation for you, your passengers, and other people involved in the accident.
The third type is third party liability coverage. This is different from conditional insurance because it is a separate policy that only covers the person you are in the accident with, less their damages (other than for their own injuries).
Third Party Car Insurance Requirements
The requirements to purchase third party policy vary from state to state. Some states require all drivers to have third party insurance and some states only require it for rental cars. If you do not have the coverage, you will be required to purchase it in every state if you rent or borrow a car, or in many states if you are driving a vehicle that is not your own.
